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Office Sales Confined to Core Markets, Trophies

CHICAGO-Large tower sales, unexpected so quickly following a devastating recession and weak fundamentals, are welcome--but are not a sign of the return of the national market.

By Robert Carr | Updated on July 20, 2011

CHICAGO-With the surprising amount of large office towers being sold and put out for sale this year, one would think that the recent recession that killed jobs and plunged rents was a decade or so in the past. However, office experts say that unless a property is in one of four-to-five core markets, or an extremely well-leased, well-positioned trophy property in a secondary market, the chances of it attracting the wave of high-priced buyers is probably still nil.

Camille Julmy, vice chairman at locally based US Equities, tells GlobeSt.com that like everyone else in the industry, he’s pleasantly surprised at the amount of money available looking for the right transaction in the core class A markets of New York City; Washington, DC; San Francisco; and even Boston or Seattle. Properties that have sold include Market Square in Washington, DC selling for $615 million, Fosterlane buying 750 Seventh Ave. in New York City for $485 million and 300 N. LaSalle in Chicago selling for $505 per square foot.

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