In the past year, the flurry of activity outside Trump International Hotel and Tower along the Chicago River has been well-documented. With massive, 20-foot letters spelling out T-R-U-M-P to anyone within eyeshot, the building has served as a rallying point for any number of political protests since his election in November 2016.
But what’s been going on behind the 98-story building’s glass façade isn’t as clear.
The number of vacancies in Trump Tower’s 486 residential units is growing. Homeowners in the building appear to have a hard time selling their units. So far this year, there have been just 13 units sold in Trump Tower, compared to 34 in all of 2016. The building’s annual sales peaked at 55 in 2015.
While condo sales overall in the building’s ZIP code are flat compared to last year, the decline in Trump Tower sales is far more dramatic. According to MRED, more than 50 units are for sale at 401 N. Wabash Ave. — approximately 10 percent of the tower’s residential units — ranging in price from $300,000 to $3.5 million.
Units in the building also are prone to be listed but then not closed, according to our data from Oct. 27. Since Trump announced his bid for the presidency on June 16, 2015, only 39 percent of condo units listed in Trump Tower have been closed. That’s substantially lower than the 60611 ZIP code, where about 65.5 percent of units listed have been closed. The days on market for units in Trump Tower is 202 days, compared with 116 days for 60611 condos.
Separating personal from politics?
In March, one owner who had listed their home for sale told DNAinfo that it was merely due to a lifestyle change. But Gail Lissner, vice president of Chicago-based real estate firm Appraisal Research Counselors, told the outlet that it all boils down to the name.
“People have never really felt neutral about the Trump name,” she said.
Businesses emblazoned with the Trump name around the country are struggling, whether hotel, retail or residential. Recent accounts have even detailed the refusal of many professional sports teams refusing to stay in Trump hotels to avoid association with and support of the brand.
Luxury’s not lagging
A summer report from DNAinfo showed that Trump Tower sales were slumping compared to the luxury housing competition next door. All luxury buildings analyzed — including Lake Point Tower, John Hancock Center, Heritage at Millennium Park and more — had far fewer units for sale than Trump Tower, even though they have a higher unit count.
Luxury sales in Chicago increased in the third quarter of 2017, where 356 luxury units were sold, a jump of 15.6 percent over the same period in 2016. Attached home sales in the luxury segment were especially strong — 178 sold in Chicago, up 26 percent from the same time last year — leaving Trump sales in stark contrast to the rest of the luxury market.
