![]() New data from the commercial real estate firm Trepp shows there are more than 70 delinquent commercial buildings in the five boroughs. That includes the financial outlook for the company in charge, the long-term potential – or lack thereof – for the building and neighborhood, the building's amenities and whether leasing is trending towards a more promising or concerning direction. Real estate analysts said there are many factors that go into whether a building goes into default. In the first quarter, there were 73 buildings in that position, known as “being underwater.” That data is from the second quarter of 2023. The real estate firm JLL also has research that shows more than 500 commercial buildings in Manhattan have lost value since their purchase price, totaling more than $38 billion.Īdditionally, 112 buildings have more debt on them than they're valued at, according to internal models calculated by the firm. However, city documents show Brookfield Properties transferred the property to Mack Real Estate, which had lent Brookfield Properties money for the building. In the middle of the 20th century, writers came up with hit after hit inside the halls of that building. That includes Brookfield Properties as well as Mack Real Estate – the parties involved in a recent transaction at 1619 Broadway, better known as the Brill Building. One lawyer told NY1 he had two clients who have offered their buildings back to the lenders. He added none of his buildings were in danger. "As a rule properties with loans coming due and significant vacancies are likely candidates," said Jeffrey Gural, the chairman of GFP Real Estate, in an email to NY1. ![]() NY1 reached out to dozens of commercial real estate companies, lawyers, and banks to try to understand how many buildings could be in danger of this happening. Higher costs and declining revenue will leave some property owners at the point where they may just give up the building and hand the keys back to the lender. So many buildings are bringing in less revenue while at the same time, their commercial loans are up to be refinanced during a time when interest rates are significantly higher. The problem now is more than one in five office spaces are sitting empty in New York City, according to a New York University and Columbia University study. Real estate analysts told NY1 it is something they are watching, with a lot of commercial real estate loans sunsetting by next year and needing to be refinanced. ![]() A joint study from New York University and Columbia University this spring predicted office values in the city will decrease by 44% by 2029.New data from the commercial real estate firm Trepp shows there are more than 70 delinquent commercial buildings in the five boroughs.Higher costs and declining revenue may some leave property owners to consider giving up the building, experts say.
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