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IPFS News Link • Central Banks/Banking

These Two Commercial Foreclosures Speak Volumes About How Bad The Market Is

• Yahoo Finance

Two recent transactions involving failed class-A office properties in two different markets speak volumes about the depth of the commercial sector's crisis. Fort Worth's Burnett Plaza has dominated the city's skyline as its tallest building since 1983. In San Jose, the property at 3100 North First Street was similar to one of the city's premier commercial destinations. Both properties became distressed assets that sold for pennies on the dollar.

Standing over 500 feet tall, Burnett Plaza included 40 stories and one million square feet of Fort Worth's most desirable commercial and retail space. Surrounded by a public park, Burnett Plaza was the kind of building businesses moved into as a signal to the world that they had arrived. As is the case with any high-rise, the higher floors were the most expensive and the leases were normally triple net.