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Commercial Property Meltdown Clobbers Pension Funds

·1 min

Government pension plans are facing challenges due to the slump in the commercial real estate market, raising concerns about potential further losses. A national pension plan in Canada has announced the sale of its stakes in Manhattan and San Francisco office towers, incurring a loss of $225 million. California’s government worker pension fund has also sold a property in Sacramento after nearly twenty years of development efforts. Consultants have warned California’s teacher pension about the negative impact of office holdings on returns, following a 9% real estate loss in 2023.