Commercial real estate could hit a breaking point this year as falling property values spur bankruptcies and forced selling, research firm says

• The commercial real estate sector could hit its breaking point as property values keep falling.
• The sector is expected to see another 10% price decline this year, according to Capital Economics.
• That could bring on a wave of bankruptcies, forced sales, and mergers, the firm said.

Commercial real estate could face a reckoning this year as property values continue to fall, according to Capital Economics. 

The research firm pointed to the difficulties commercial real estate faced last year, with property values falling an estimated 11%. Prices are set to fall another 10% this year, the firm estimated, spelling trouble for the mountain of debt backed by commercial buildings.