The reason for the interest is a market that presents a type of opportunity the REIT seeks--class A assets with a high vacancy rate that can be acquired at a price below replacement cost. The downturn in the office market has resulted in more buying opportunities across the major US office markets.
"We're seeing more deals that make sense to us," Kincaid said. "What we're starting to see is good per sf costs and in some markets, rents are starting to move."
Among properties reportedly on the market are Hines Interests' 191 N. Wacker Dr. and Harris Bank's 115 S. LaSalle St. Also, Prime Group Realty Trust's office portfolio has been on the market as the REIT has explored possible sales that could include the entire company.
Although the former Anderson headquarters at 33 W. Monroe St. has been sold, the REIT still owns three million sf in three Downtown buildings, including 180 N. LaSalle St., where vacancy was more than 21% according to its most recent earnings report. The REIT recently settled a lawsuit for $275,000 brought by a partnership that had struck a verbal agreement to buy the 766,397-sf property.
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