(L-R): Ryan Moen, SIOR, Tom Dwyer and Bob Johnson
On September 24, 2024 the Chicago Chapter of The Society of Industrial and Office Realtors (SIOR) hosted its Speaker Series Luncheon at Gibsons Restaurant in Rosemont, IL. Ryan Moen, SIOR, Vice President of the SIOR Chicago Chapter moderated a discussion about office market distress and receiverships.
The panel consisted of Tom Dwyer of Transwestern and Bob Johnson of Equity Commonwealth.
Key takeaways include:
- Much of the distress in the office market stems from rising interest rates and higher office vacancy rates, and as a result, many borrowers are opting to hand over the keys to lenders rather than continue with costly tenant improvement packages
- Massive discrepancies between loan balances and property values are causing many lenders to take properties back rather than structure a workout
- Auctions now feature quality assets and offer a higher certainty of closing, but from the investor’s perspective, the traditional sales process is still preferred
- The recent interest rate cut is more of a short-term band-aid rather than a cause of sweeping change
- The lending landscape has shifted from 10-year fixed loans to 5-year fixed loans, allowing lenders to reduce their risk profile
Approximately 45 SIOR members and guests attended the luncheon.
SIOR Chicago Chapter Welcomes Panel of Knowledgeable Distressed Asset/Receivership Experts to Speaker Series Luncheon
About SIOR Chicago Chapter
The Chicago Chapter of the Society of Industrial and Office REALTORS ® (SIOR) boasts 165 elite commercial and industrial practitioners in the Chicago metropolitan area real estate market. Real estate professionals who have earned the SIOR designation are recognized by corporate real estate executives, commercial real estate brokers and agents, lenders, and other real estate professionals as the most experienced, capable and ethical practitioners in any market. The global SIOR organization holds more than 2,800 members in 480 cities in 20 countries. A professional affiliate of the National Association of REALTORS®, SIOR maintains a commitment to business and industry by providing outstanding professional services, publications, and educational programs. For more information, visit our website or follow us on LinkedIn or Instagram.
