It is no secret in the real estate world that prime office properties are not only plummeting in value but the prospects of future tenants dwindling.
The trend to remote work kiss of death for these properties, an insidious shadow financial impact of the pandemic. Here in west suburban Chicago where we reside, one major class A property has succumbed to partial foreclosure as default on a secondary mortgage according to public records and that is the Central Park Lisle office complex.
Driving down the road where the office buildings were developed as a cluster reveals sparse parking of cars in the lots indicating low tenancy. Scary times for the “IDIOT” bankers sitting on low interest bearing bonds thinking interest rates would never rise AND exposed to commercial real estate portfolios as well.