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.
