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Plunging demand for commodity offices in the US is driving growth for the highest-quality properties, a\u00a0Morgan Stanley<\/a>\u00a0executive said.<\/p>\n Many older offices \u201cwill be stranded because they simply don\u2019t have long-term cash flow growth potential,\u201d\u00a0Lauren Hochfelder, co-chief executive officer of Morgan Stanley<\/a> Real Estate Investing, said in a Bloomberg Television interview Thursday. \u201cThose assets just don\u2019t meet modern tenant demand, they don\u2019t meet them from a standpoint of quality or amenitization.\u201d<\/p>\n The best buildings are those that focus on wellness and amenities and are well-located, Hochfelder said. The trend is apparent in places such as San Francisco, which is one of the worst office markets globally, she said.<\/p>\n \u201cWe own some of the best office assets in that market,\u201d Hochfelder said. \u201cEven today, we\u2019re signing leases at rents above pre-Covid levels.\u201d<\/p>\n Morgan Stanley has been\u00a0seeking<\/a>\u00a0real estate deals that arise from the upheaval in commercial-property markets around the world. It\u2019s particularly focused on industrial buildings, as e-commerce and shifts in the global supply chain stoke demand, Hochfelder said.<\/p>\n<\/div>\n\nSubscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up<\/a> for free.<\/div>\n<\/div>\n