Real Estate
Older US Office Buildings Left ‘Stranded,’ Morgan Stanley Says
- Tenants flocking to well-located buildings full of amenities
- Hochfelder says best assets in San Francisco are leasing up
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Plunging demand for commodity offices in the US is driving growth for the highest-quality properties, a Morgan Stanley executive said.
Many older offices “will be stranded because they simply don’t have long-term cash flow growth potential,” Lauren Hochfelder, co-chief executive officer of Morgan Stanley Real Estate Investing, said in a Bloomberg Television interview Thursday. “Those assets just don’t meet modern tenant demand, they don’t meet them from a standpoint of quality or amenitization.”