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It's Tough For Newspapers With Buildings For Sale

The era of commanding downtown newspaper buildings appears near an end. At least half a dozen newspaper companies have said this year they plan to sell their buildings. Some want to lease back space for their news operations and others are moving to smaller offices as staffs dwindle.

But the option of selling off buildings to raise money may be drying up, as frozen credit markets make commercial real estate deals scarce. "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 got your work cut out for you," says Ross Moore, real estate director at Colliers International.

Beside the dismal real-estate market, potential buyers also know that newspapers are hurting and will try to hold out for a bargain. Another complication is that many newspaper buildings were constructed early in the 20th century as public expressions of influence and civic duty. They now face restrictions from historic preservation laws on what can be altered, which can discourage buyers.

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