Office Towers Sold at Steep Discounts as COVID Impacts Linger

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Office towers that once commanded premium prices are now being sold at steep discounts, with some buildings in major cities like Chicago and Denver going for just a fraction of what they were worth just a decade ago. The COVID-19 pandemic has had a lasting impact on office real estate, with rents and valuations down across the board, though the most desirable properties in top markets are faring better. Developers are taking advantage of the lowered prices to pursue costly redevelopment projects that would have been financially unworkable before.

Why it matters

The shift in office real estate values reflects the lasting impact of the pandemic on how and where people work. As remote and hybrid work models become more common, the demand for traditional office space has declined, leading to falling rents and valuations. This is creating opportunities for creative redevelopment projects, but also raises questions about the future of urban centers that have long been dominated by office towers.

The details

In one example, a 485,000-square-foot office building in Chicago that sold for $68.1 million a decade ago was recently purchased for just $4 million. In Denver, a two-tower complex that commanded $176 million in 2013 was bought out of foreclosure for $5.3 million. While the most desirable office properties in top markets like New York and San Francisco are still seeing profits, across the board, office values are down significantly.

• In January and February 2026, sales of distressed offices totaled $808 million, a 24.5% year-over-year increase.
• The Chicago building that sold for $4 million was previously purchased for $68.1 million a decade ago.

What’s next

As more office buildings are sold at steep discounts, developers will continue to explore creative redevelopment opportunities, potentially transforming the landscape of urban centers that have long been dominated by office towers.