Tuesday, August 11, 2009

WSJ: JPMorgan Offering 23 Office Properties For Sale

by Calculated Risk on 8/11/2009 11:48:00 PM

From the WSJ: Feeling Roomy, J.P. Morgan Shops Its Space (ht BR)

J.P. Morgan Chase & Co. is marketing 23 office properties ... with a combined 7.1 million square feet of space, includes four notable towers: One Chase Manhattan Plaza, near Wall Street; Four New York Plaza, also in the Financial District; the former headquarters of Washington Mutual in a downtown Seattle skyscraper that also houses the city's art museum; and a landmarked 1929 Art Deco building in Houston, the former headquarters of Texas Commerce Bank.

The portfolio is believed to be the largest single portfolio of office properties to hit the market this year and could raise more than $1 billion.
JPMorgan acquired most of this office space as part of recent acquisitions.

And a great quote:
"Vacant space right now is not ideal," said David Aubuchon, an analyst with Robert W. Baird & Co. ...
No kidding! Not in a period with rapidly rising office vacancy rates.

Note: Aubuchon is comparing to a few years ago when vacant space was considered valuable by some CRE investors under the assumption that rents would increase sharply.