In this uncertain economy, several sectors have taken hits at various times over the past few years. Some investors think commercial real estate (CRE) could be the next shoe to drop.

Interest rates soared for the first time since just before the Great Recession, which makes borrowing more expensive. The popularity of working from home and the ability to use the internet to do more activities online has put pressure on certain pockets of CRE, like office space and retail, and a recession could be brewing.

Distress can create opportunity, and billionaire investor Seth Klarman, who co-founded the now $25 billion hedge fund Baupost Group, thinks he sees opportunity emerging in CRE. Here's why.

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Source Fool.com