### Manhattan Trophy Towers Spur Resurgence in Office CMBS
Investors are returning to the office CMBS market after nearly two years on the sidelines, committing billions to refinancing deals for major New York City towers. While the outlook for older, less well-known buildings remains uncertain, high-profile properties are attracting significant investment.
Recent months have seen billion-dollar securitizations for Tishman Speyer’s Rockefeller Center and The Spiral, with similar refinancings expected for 200 Park Avenue and the Seagram Building at 375 Park Avenue. In February alone, investors purchased more than $4.5 billion in CMBS backed entirely by U.S. office properties—the highest amount in at least five years. According to Deutsche Bank, these securities accounted for 35% of single-asset CMBS sold that month, the highest share since 2021.
However, the renewed interest is largely concentrated on premium assets. Demand for bonds tied to Class B and Class C properties remains weak. “The office market is separating into haves and have-nots,” said Zachary Aronson, a portfolio manager at MacKay Shields. “Investors are eager to buy bonds backed by newer buildings with lots of amenities, while older properties continue to struggle, especially if they’re in less desirable locations.”
*Pictured: The Spiral.*
