NYC Office Buildings See Resurgence as Investors Pile Into Bonds
- Tower debt spreads have tightened over the last few months
- Special servicing rate of office-backed bonds now above 10%
Investors are back to buying office bonds after about two years on the sidelines, committing billions to deals that refinance New York City towers even as the future for older, less well-known buildings remains unclear.
From the Seagram Building to The MetLife Building, owners of Manhattan’s trophy offices — prime buildings in desirable locations — have sold a slew of commercial mortgage backed securities in 2025. That builds on momentum from the fourth quarter of last year, when there was a $3.4 billion CMBS sale tied to the Rockefeller Center.