Michael Thom Offers Insights on Potential Market Meltdown for Trump’s Wall Street Tower in The Wall Street Journal

In The Wall Street Journal‘s May 7, 2024 article titled “The Office-Market Meltdown Comes for Trump’s Prized Wall Street Building,” Michael Thom, a partner at Obermayer specializing in public and private financing of commercial real estate properties, was interviewed regarding the potential market meltdown facing Trump’s Wall Street Tower.

Donald Trump’s esteemed Manhattan office tower at 40 Wall St. is encountering difficulties amid the current office market downturn, reported as the most severe since the global financial crisis. Much like numerous U.S. office buildings, 40 Wall is grappling with rising vacancies, currently standing at 21%. The departure of key tenant Duane Reade has notably contributed to this vacancy increase. Despite reassurances from Trump Organization executives regarding the building’s financial stability, market signals suggest otherwise. 

Furthermore, 40 Wall faces extra challenges because of its connection to the Trump brand. This association might discourage potential tenants who are concerned about alienating employees or customers, as highlighted by Michael Thom, who emphasized the potential drawbacks of the Trump name in the current market landscape. 

“Some people don’t want to deal with the [Trump] baggage,” said Michael “At a time like this, when the office market is struggling, it doesn’t help.”

Read the full article here.