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Chicago emerging as ground zero for collapse in downtown office values

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Chicago emerging as ground zero for collapse in downtown office values

Office towers that once sold for hundreds of millions of dollars are now changing hands at discounts of 70%, 80%, even 90% across major U.S. cities, as higher interest rates and remote work reshape demand for downtown space.

 Few places illustrate the shift more starkly than Chicago. There, the markdowns span every era of development according to figures first tweeted out by Nightingale Associates.

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 A century-old office building in the city’s historic Printing House Row district, 401 S. State St., recently sold for just $4.2 million, down from $68.1 million in 2016, a 94% drop.

The prominent Loop tower at 311 S. Wacker Drive traded at an 85% discount, selling for $45 million compared with $302 million in 2014.

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People are seen taking a photo of the Chicago skyline.

People look out toward the skyline from a frozen North Avenue Beach on January 24, 2026, in Chicago, Illinois. (Jacek Boczarski/Anadolu/Getty Images / Getty Images)

Even newer, high-profile properties have not been immune. Boeing’s long-term lease interest in 100 N. Riverside Plaza, not the tower itself, sold for $22 million, down from $165 million in 2005, an 87% decline.

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And at 300 W. Adams St., a leasehold interest in the building changed hands for just $4 million, compared with $51 million in 2012 — a 92% discount.

Taken together, the deals illustrate how sharply the economics of downtown office real estate have shifted in just a few years, as higher interest rates and remote work reshape demand.

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A man walks by an empty Chicago building up for a rent.

Retail space for lease in downtown Chicago, Illinois, US, on Tuesday May 27, 2025. (Christopher Dilts/Bloomberg/Getty Images / Getty Images)

The fallout extends beyond landlords and investors. In many major cities, office towers are a cornerstone of the tax base, helping fund schools, public safety and transit — meaning falling property values can ripple through local budgets.

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And Chicago is not alone. 

Across the country, downtown office buildings are trading at steep discounts. Last year, an 18-story Dallas office tower sold for $26.1 million, a 64% discount from its $73 million sale price in 2016. 

In St. Louis, a 44-story tower sold in 2022 for $4.5 million, a fraction of the nearly $205 million it fetched in 2006. More recently, an office building in downtown San Jose, California, sold for $23.7 million, well below its $80.1 million sale price in 2017. In Newton, Massachusetts, a three-building office complex changed hands last year for $117.5 million, roughly half of its $235 million price back in 2020. 

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CHICAGO, ILLINOIS – JANUARY 18: A general interior view of Soldier Field prior to the NFL divisional playoff football game between the Los Angeles Rams and Chicago Bears at Soldier Field on January 18, 2026 in Chicago, Illinois.  (Kara Durrette/Getty Images / Getty Images)

Amid broader uncertainty about the future of downtowns, city leaders are also working to retain major economic anchors, including the Chicago Bears. 

The team is exploring a possible relocation to Indiana, where a new stadium could be constructed near Wolf Lake in Hammond, just across the state border.

As property values fall, city leaders face difficult choices: cut services, raise taxes elsewhere, or absorb widening budget gaps.

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(VIDEO) Mexico’s Most-Wanted Cartel Boss ‘El Mencho’ Killed by Security Forces in Jalisco Operation

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El Mencho

MEXICO CITY — Mexican security forces killed Nemesio Oseguera Cervantes, the elusive leader of the Jalisco New Generation Cartel (CJNG) known as “El Mencho,” during a military operation in the western state of Jalisco on Sunday, February 21, 2026, according to multiple government sources and Mexican media reports.

El Mencho
El Mencho

The 59-year-old Oseguera, one of the world’s most wanted drug lords, was gunned down in a targeted raid in the mountainous region near Tapalpa, a small town in Jalisco where the CJNG was founded and remains deeply entrenched. A federal official, speaking on condition of anonymity due to the sensitivity of the operation, confirmed the death to several outlets including Reuters, CNN and El País. The Mexican Defense Ministry and Attorney General’s office have not yet issued an official statement, but local newspapers and government insiders cited by EL PAÍS and The Guardian reported the killing occurred during a clash with troops.

Oseguera had evaded capture for more than a decade, operating from hidden mountain strongholds while directing the CJNG’s expansion into fentanyl trafficking, methamphetamine production and extortion across Mexico and into the United States. The cartel, formed in 2010 from a splinter of the Sinaloa Cartel, grew into Mexico’s most powerful and violent criminal group, surpassing rivals through aggressive tactics, corruption of officials and control of key ports like Manzanillo.

The U.S. State Department had offered a $15 million reward for information leading to his arrest, one of the highest bounties ever placed on a drug trafficker. Mexico’s government offered 300 million pesos (about $15 million). Oseguera was indicted in the U.S. on charges including drug trafficking, money laundering and murder, with federal prosecutors in Chicago and Washington labeling him a top priority.

His death comes amid heightened U.S.-Mexico tensions over fentanyl flows and cartel violence. President Trump has repeatedly threatened military strikes inside Mexico and designated several cartels as foreign terrorist organizations, increasing pressure on the Mexican government to act decisively. The operation may ease some bilateral friction, though experts warn it could spark violent succession battles within the CJNG, potentially escalating turf wars in Jalisco, Michoacán and Guanajuato.

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Oseguera, born July 17, 1966, in Aguililla, Michoacán, began his criminal career in the 1990s as a police officer before joining the Milenio Cartel. He rose through the ranks after the group fragmented, founding the CJNG with his brother-in-law and cousins. Known for his low profile — rarely photographed and avoiding public appearances — he was dubbed “El Señor” or “El Mencho” (a nickname derived from “menchito,” meaning little mango). He was protected by layers of sicarios, encrypted communications and corrupt officials.

The CJNG under his command was responsible for thousands of homicides, mass graves and attacks on security forces. The cartel pioneered extreme violence, including public executions and attacks on military convoys, while dominating fentanyl precursor chemical imports from China.

If confirmed, Oseguera’s killing represents a major victory for President Claudia Sheinbaum’s administration, which has emphasized intelligence-led operations over direct confrontation. However, experts caution that decapitation strategies rarely dismantle cartels long-term, often leading to fragmentation and increased violence as factions vie for control.

The operation unfolded in Tapalpa, a rural area in southern Jalisco, where Oseguera reportedly maintained safe houses. Governor Pablo Lemus Navarro posted on social media urging residents to stay indoors during the action, signaling a significant military deployment. Details on casualties or whether other cartel members were killed remain limited, with authorities withholding full information pending forensic confirmation.

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Reactions poured in quickly. U.S. officials expressed cautious optimism, with one source telling Reuters the death could disrupt CJNG supply chains. Mexican security analysts noted the timing aligns with intensified pressure from Washington and domestic demands to curb cartel influence.

Oseguera’s demise leaves a power vacuum in one of Mexico’s most dangerous criminal organizations. Potential successors include family members or top lieutenants, but internal rivalries could trigger bloodshed similar to past leadership transitions.

As investigations continue and the government prepares an official announcement, the killing of “El Mencho” marks a pivotal moment in Mexico’s long war against drug cartels — one that may shift dynamics but is unlikely to end the violence.

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DAE Capital nears deal to buy aircraft leasing firm Macquarie Airfinance, sources say

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DAE Capital nears deal to buy aircraft leasing firm Macquarie Airfinance, sources say


DAE Capital nears deal to buy aircraft leasing firm Macquarie Airfinance, sources say

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Rolls-Royce to return as much as $2 billion to shareholders in buyback, Sky News reports

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Rolls-Royce to return as much as $2 billion to shareholders in buyback, Sky News reports


Rolls-Royce to return as much as $2 billion to shareholders in buyback, Sky News reports

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Reversing course, US will keep TSA PreCheck program operational

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US Homeland Security: TSA PreCheck still operational, reverses earlier announcement


Reversing course, US will keep TSA PreCheck program operational

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Mexican drug lord "El Mencho" killed in military operation-government source

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Mexican drug lord "El Mencho" killed in military operation-government source


Mexican drug lord "El Mencho" killed in military operation-government source

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Mexican drug lord "El Mencho" killed in military operation, says government source

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Mexican drug lord "El Mencho" killed in military operation, says government source


Mexican drug lord "El Mencho" killed in military operation, says government source

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Mexican drug lord "El Mencho" targeted in military operation, local news outlets report

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Mexican drug lord "El Mencho" targeted in military operation, local news outlets report


Mexican drug lord "El Mencho" targeted in military operation, local news outlets report

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Iran agreed secret shoulder-fired missile deal with Russia, FT reports

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Iran agreed secret shoulder-fired missile deal with Russia, FT reports

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Iranian students protest for second day at some universities

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Iranian students protest for second day at some universities


Iranian students protest for second day at some universities

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Law enforcement kills armed man seeking to enter Trump’s Mar-a-Lago resort, officials say

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Law enforcement kills armed man seeking to enter Trump’s Mar-a-Lago resort, officials say


Law enforcement kills armed man seeking to enter Trump’s Mar-a-Lago resort, officials say

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