DC Commercial Real Estate in Crisis: Dupont Circle Office Building Sells at 77% Discount, Plunging $72M from 2016 Price. The $21M transaction is over $50M less than 2019, with the previous owner, a co-working company, defaulting on a $65M loan. Amidst reports of owners surrendering keys to lenders, the city is in the early stages of a concerning trend, casting a shadow over the future of its real estate landscape.
There is over $8bn in outstanding CMBS loans back by office properties in the Washington, DC MSA, the delinquency rate is up over 18% in October.
A scary situation is right.
— Will Moisan (@wmoisanCRE) November 20, 2023
Really appreciate these posts
The amount of capital destruction happening right now in the physical asset space that is leading to meaningful repricing in the CMBS markets is just incredible
Still a lot of pain to come
— Sharp On Sats (@Sharp_On_Sats) November 20, 2023