Commercial real estate has proven itself to be a bubble waiting to pop. More proof surfaced this week.<\/p>\n
A 22-story office tower at 175 West Jackson Boulevard in the heart of Chicago\u2019s Loop, once a trophy asset commanding more than $300 million in value, just traded for about $41 million, according to Bloomberg.<\/p>\n
That\u2019s roughly 87 percent less than its pre-Covid price tag and a stunning reset for a property that was supposed to be a stable, income-producing cornerstone of a major global city\u2019s commercial real estate.<\/strong><\/p>\n The building\u2019s vacancy rate is reported to be around 53 percent, the lender once sued to foreclose on the roughly $280 million loan tied to the property, and the new buyers only closed the deal by cobbling together about $58.5 million in fresh financing.<\/p>\n If you needed proof that something is\u00a0proper fucked<\/em>\u00a0in commercial real estate, this sale should be one of those moments where you stop and actually look instead of listening to the dickheads on financial media repeating \u201coffice demand will come back.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" Commercial real estate has proven itself to be a bubble waiting to pop. More proof surfaced this week. A 22-story office tower at 175 West Jackson Boulevard in the heart of Chicago\u2019s Loop, once a trophy asset commanding more than … Continue reading