The U.S. office real estate market is facing significant distress, with a notable instance being a Chicago office building expected to sell for approximately $16 million, a sharp decline from its last sale price of $75 million in 2015. This building, vacated by Salesforce last year, is now mostly vacant and could trade at an 80% discount. Nationwide, office owners are grappling with collective distress totaling $38 billion. In San Francisco, downtown real estate values have plummeted, raising questions about whether the best investment opportunities have already passed. Additionally, delinquencies for floating-rate office commercial mortgage-backed securities (CMBS) loans have reached 20%, and about 31% of all office loans in commercial mortgage bonds were reported as troubled in March.
About $52 billion, or 31%, of all office loans in commercial mortgage bonds were in trouble in March, according to KBRA Analytics. https://t.co/MLZWHALZpH
About $52 billion, or 31%, of all office loans in commercial mortgage bonds were in trouble in March, according to KBRA Analytics. https://t.co/YAKdDc5q3h
Report: Nearly One-Third of National Office CMBS Is Distressed https://t.co/hmNcMauSCw
Delinquencies of Floating-Rate Office CMBS Loans Hit 20%! The delinquency rate of office mortgages that have been securitized into Commercial Mortgage-Backed Securities (CMBS) – investors on the hook here, not banks – spiked to 7.4%, powered by floating-rate mortgages, whose… https://t.co/4exyO4pOqg
CMBS Delinquencies Surge in April, Led by Office #CMBS https://t.co/yjz7tb90iw
Here's what San Francisco's beleaguered downtown mall is like now https://t.co/9G3jb9eY8R
San Francisco's Downtown First Thursdays kicks off with high hopes that it will revitalize an area that has struggled since the start of the pandemic. https://t.co/PVjfqoV1ya
Delinquencies of Floating-Rate Office CMBS Loans Hit 20%, But Fixed-Rate Loans at 4.7%. Revenge of the floating-rate CRE loans: Ironically, use of floating-rate office loans ballooned as interest rates rose https://t.co/HUdevA2M4z https://t.co/rdORfxyzzS
Downtown S.F. real estate is going for a fraction of what it commanded just five years ago, and investors are circling. But have the best bargains already been had? https://t.co/Z7UYP5rNv1
Office owners face collective $38B of distress, report https://t.co/RzDN4HDyzB
JUST IN: Distressed office building in Chicago hits market and could trade at a shocking ~80% 'haircut' Bids are expected in the ~$16M area or ~$100 a sq ft The building last sold for $75M in 2015 Salesforce vacated the property last yr and is mostly vacant Source: Crain's… https://t.co/UTh1u1ahKt