$6.1B: Downtown Office Sales Set New Record

2015 will be remembered as the year of the blockbuster office sale. According to numbers from JLL, downtown office building sales set a new record of $6.1B, and that number could grow with almost two months remaining in the year.

The new record was paced by Blackstone Group's $1.3B purchase of Willis Tower in May. Blackstone paid $11.4M in state and local real estate transfer taxes in that deal. Other deals completed in the first half of the year included Mid-Continental Plaza ($367M), One South Wacker ($345M), River Center ($304M) and One North Wacker ($240M).

Aon Center, Chicago, IL
One and Two Prudential Plaza, and Aon Center, Chicago

The second half of the year has been just as hot. Piedmont Office Realty's $712M sale of Aon Center to the 601W Cos was finalized Oct. 29, according to Crain's. PNC Realty Investors' $320M deal for 333 W Wacker was finalized Nov. 4.

There are other buildings on the market that could push those stats even higher. Tribune Media is courting buyers for Tribune Tower, and 190 S LaSalle is for sale. Several factors are behind the record volume. Downtown vacancy rates are below 13% for the first time since 2008, while Chicago's affordability, compared to the coasts, continues to attract investors. The previous record of $5.3B was set in 2006. [Crain's]

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