A
prime suburban office building in Basking Ridge, New Jersey has seen its value plummet by 72% over the past decade. The 135,000-square-foot property at 120 Mountain View Boulevard was appraised at $7.7 million in July, down from $27 million in 2014. Despite renovations and a high occupancy rate of 100%, the building's value dropped significantly after it traded for $27 million in 2014.

    The property's troubles began even earlier, when it was purchased by a real estate investment trust linked to KBS Realty Advisors for $30 million in 2008. The building has struggled with low occupancy rates, currently standing at 47% as of December. It's possible that the lender took back control of the property after the borrower defaulted on the loan.

    The office market in Northern New Jersey is facing challenges, with vacancy rates hovering around 20% since 2020. However, the Class A office market in Jersey City appears to be thriving, with recent deals such as 601W Companies' $85 million purchase of the Harborside 5 building from Veris Residential.