Despite many companies issuing return-to-office mandates, the commercial real estate market in big cities like New York remains volatile. Iconic office towers once valued in the hundreds of millions are taking a major hit. For example, a Midtown Manhattan office building just sold at a 97.5% discount after only receiving one offer. The 23-story, 925,000-square-foot building sold for $8.5 million last week, after commanding a whopping $332 million in 2006. The building has seen a slew of companies call it home over the years, including Zales and Sports Illustrated, though it’s now 65% vacant due to the pandemic. The building’s website boasts floors that range from 12,000 to 63,000 square feet with full-floor blocks that could serve as a building within a building for the right tenant. For decades, buildings like this have made up the backbone of Manhattan’s booming office sector, but today they've lost their appeal and their value.
Famed NYC Office Building Sells For 97.5% Less Than In 2006
Despite many companies issuing return-to-office mandates, the commercial real estate market in big cities like New York remains volatile. Iconic office towers once valued in the hundreds of millions are taking a major hit. For example, a Midtown Manhattan office building just sold at a 97.5% discount after only receiving one offer. The 23-story, 925,000-square-foot building sold for $8.5 million last week, after commanding a whopping $332 million in 2006. The building has seen a slew of companies call it home over the years, including Zales and Sports Illustrated, though it’s now 65% vacant due to the pandemic. The building’s website boasts floors that range from 12,000 to 63,000 square feet with full-floor blocks that could serve as a building within a building for the right tenant. For decades, buildings like this have made up the backbone of Manhattan’s booming office sector, but today they've lost their appeal and their value.