Sears Tower's 22% Vacancy Problem

Crain's Chicago Business reports:

Swiss banking giant UBS A.G. is rescuing Sears Tower with a new, $780-million loan at 6.26% — about the same as your typical home mortgage, according to sources close to the transaction.

The massive loan arrives as the iconic skyscraper’s annual net operating income (NOI) has tumbled 20%, to about $59 million, because of the downturn in the office market and a hangover from the 2001 terrorist attacks.

Such a decline might otherwise spell disaster. But instead, Sears Tower is a high-profile example of how a plentiful supply of cheap mortgage money has allowed landlords to survive falling rents and rising vacancies, and flourish when it comes time to sell.

I guess the demand for downtown office space isn't the wave of the future.