In a Wall Street Journal article by Matt Wirz, Axonic Capital’s Co-CIO Matt Weinstein commented on the long-term impact of distressed office assets on the commercial real estate market. Weinstein referred to a high-profile Chicago office tower, abandoned by its former owner and now struggling with tenant losses, as “effectively offline,” a status he believes will increasingly apply to similarly situated buildings nationwide.
The piece examines how ownership disputes, special servicing delays and capital shortfalls are compounding credit concerns in older office properties. Weinstein observed that buildings in this category will “continue to lose tenants,” reinforcing broader concerns about long-term viability for certain assets in markets where repositioning may not be economically feasible.
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