Quote:
Originally Posted by LouisVanDerWright
Oh shit, what drama, White Oak partners announced Ferrara would be moving to 625 w Adams as the first tenant earlier this year:
https://therealdeal-com.cdn.ampproje...-west-adams%2F
Looks like 625 will be staying empty a while longer. Apparently the 20 floor Fifield econobox model no longer works in a world full of Fulton Cold Storages and OPOs...
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This will be a legit problem for non-riverfront office buildings and just generally the office market. Typical prime tenants are consolidating space per staff while the companies that can are moving towards either "creative" loft offices or flagship prime buildings (BOA, Salesforce, BMO, etc).
Mediocre traditional offices will struggle to rent while older half empty buildings will need to seriously think about how to re position.
I think some of these will just need to lower the rents. Buildings like 625 may go bankrupt and get restructured by a buyer taking lower rents, stealing the second half of the tenant base from a half vacant building on Lasalle that cant replace their big bank/law firm tenant. 625 is still a better option and if its cheap, companies will take it.