"Office towers that once sold for hundreds of millions of dollars are now changing hands at discounts of 70%, 80%, even 90% across major U.S. cities, as higher interest rates and remote work reshape demand for downtown space. Few places illustrate the shift more starkly than Chicago. There, the markdowns span every era of development according to figures first tweeted out by Nightingale Associates."
"A century-old office building in the city's historic Printing House Row district, 401 S. State St., recently sold for just $4.2 million, down from $68.1 million in 2016, a 94% drop. The prominent Loop tower at 311 S. Wacker Drive traded at an 85% discount, selling for $45 million compared with $302 million in 2014. Even newer, high-profile properties have not been immune."
Downtown office building sale prices across major U.S. cities have collapsed, with many transactions showing discounts of 70% to 94% from prior sale prices. Chicago recorded steep markdowns across eras of development, including a century-old Printing House Row property sold for $4.2 million versus $68.1 million in 2016, and a Loop tower sold for $45 million versus $302 million in 2014. Leasehold and lease-interest transactions similarly plunged. Higher interest rates and persistent remote work have sharply reduced demand and financing capacity for office space. Declining office values threaten local tax bases that fund schools, public safety, and transit.
Read at Fox Business
Unable to calculate read time
Collection
[
|
...
]