Next up for Tribune Co.: making the most of its real estate

After announcing a plan to split its newspaper unit into a separate company, Tribune Co. is turning its attention to its real estate.

The media company announced Tuesday the hiring of Murray McQueen to fill the newly created position of president of real estate. He will assess whether Tribune is making as much money as it can from its holdings, including its historic newspaper properties.

“We have more than seven million square feet of space under management from coast to coast, including the historic Tribune Tower in Chicago and Times Mirror Square in Los Angeles,” Peter Liguori, Tribune’s chief executive, wrote in a memo to employees. “Just like the other assets owned by the company, it’s important that we think strategically about how best to maximize the value of our real estate for our shareholders.”

The company’s handling of its newspaper properties will be watched closely.

Tribune announced its intention last week to spin off its newspaper unit into a separate company consisting of The Times, the Chicago Tribune and its six other daily papers. All other assets, including all real estate, would remain part of Tribune Co.

That triggered concern among some analysts. Other media companies that have disposed of their newspapers have included the land and buildings. That helps to prop up the value of the papers in a treacherous advertising market.

Tribune’s decision to keep the real estate has reduced the value of its newspapers, forcing potential buyers of the papers to worry about “leasing or buying their own space for large workforces and print production,” media analyst Ken Doctor said in a report last week.

“The value of newspaper-owned real estate varies widely -- location, location, location -- but over the last three years of newspaper sales, real estate value has often justified half of overall deal prices,” Doctor wrote.

“So Tribune keeps that value in the old company, and would-be newspaper buyers can now lower their appraisals of the papers,” Doctor wrote.

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Follow Walter Hamilton on Twitter @LATwalter