The value of US commercial real estate has been reduced by 27%, reports Financial Times

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FILE PHOTO: The Empire State Building and Manhattan skyline are seen in New York, New York, United States, September 9, 2020./File Photo

NEW YORK (Reuters) – The economic effects of the coronavirus are hitting the US trade-backed securities market, raising questions about the value of hotels, malls and other buildings that serve as collateral for mortgages, according to a Financial Times report on Sunday.

Wells Fargo estimates that U.S. properties that have had problems are down 27% on average, according to the report. (on.ft.com/36cE4eE)

Falling valuation values ​​could push portfolio managers who have entered the commercial mortgage market in search of yield at a time when the Federal Reserve has indicated it will keep benchmark yields close to zero until ‘in 2023 at the earliest.

Reporting by David Randall; Editing by Lisa Shumaker

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