Wednesday, May 9, 2007

All these strikes = opportunity?

I noticed that the Inland Steel Building is back on the market. As Tom Corfman rightly points out, "Only in the current environment could a building in less than two years lose its largest tenant, accounting for about a fifth of the space, but see its value jump by more than 20%."

This building has strikes against it: age, somewhat small floorplates for me (12,000 sf) and a 22% vacancy rate. I don't know if there are significant landmark issues to deal with, though I doubt it. But there's also opportunity in that the vacancy rate means you can chase significant tenants. Still, projections of up to $285 a foot for the building are awfully high, but hey, if they get it more power to them! In this market the sky is still the limit.