Despite many companies issuing mandates of return to officethe commercial real estate market in major cities such as New York remains unstable.

Iconic office towers once valued in the hundreds of millions are taking a big hit. For example, an office building in Midtown Manhattan just sold at a 97.5% discount after receiving only one offer, New York Times reported.

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A 23-story, 925,000-square-foot building redesigned by famed Gensler Architects sold for $8.5 million last week. The building was last sold in 2006 for $332 million.

The office building, located at 135 West 50th Street, was built in 1963 and was auctioned by UBS on an auction website called Ten-X. She received only one offer.

“UBS's perspective was, 'We have to sell so quickly, we've come to terms with this is going to be a big loss. We have to sell it and we have to move on,'” said Ten-X president Steven Jacobs. The real deal in an interview.

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The building has seen a host of companies call it home over the years, including Zales and Sports Illustrated, though it's now 65% empty due to the pandemic and companies downsizing for office space.

building the website boasts floors ranging from 12,000 to 63,000 square feet with full blocks that “could serve as a building within a building for the right tenant.”

However, the sale of the building does not include the land beneath it, as UBS sold it to Safehold in 2019 for $285 million.

The new owner of the building has not been revealed.

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