Newspapers which have been in a tailspin only exacerbated by the slumping economy are now preparing to sell their buildings but may find few interested buyers.

From E & P

With revenue plunging as readers and advertisers flee to the Web, many newspaper companies have turned to selling off their buildings to raise money or save on costs. But now that option may be drying up too, as frozen credit markets make commercial real estate deals scarce.

At least half a dozen newspaper companies have said this year they plan to sell their buildings, some with the intention of leasing back space for their news operations. Others are moving to smaller offices to save money as staffs dwindle and the era of commanding downtown newspaper buildings appears near an end.

The newspapers could hardly have picked a worse time to put their buildings on the block, with the value of commercial real estate deals plummeting from just a year ago.

“Timing is everything,” said Ross Moore, a director at the real estate services firm Colliers International. “If you tried to do a sale-leaseback 18 months ago the deal would have been done before the end of the day. Now, you’ve probably got your work cut out for you.

“The second issue is the newspapers themselves,” he added. “It’s pretty well known that they’re going through a tough time.” Which means buyers know they can hold out for a bargain.

Selling their buildings at any price will only buy the papers some short term relief from a long term problem. 

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