Erin, why don't you move this post to 'Kitchens' forum. The helpful contractors and restoration gurus are there.

Substrate under metal/steel counter is wood. I'm not sure exactly how the sink is secured... the countertop on the same level of sink is granite. I can take another picture if that helps. It was constructed by a licensed contractor. The metal counter was a first for them... we modeled it after a counter we liked at a local brew pub. The issue I see moving forward is that even after it is fixed it will continue to get splashed by kitchen faucet.

Cheap 14 pound particle board substrate most likely under the metal, and maintenance of the caulk between the splash and counter has not kept up, or was insufficient in the first place. Steam and dripping from loading the DW.

It looks like they pushed grout, not silicone caulk, into the grout line between the top and first tile. Dig out all that grout, push in color matched silicone, and hope for the best.

Thank you all for suggestions. So I will plan to dig out grout and replace with color matched silicone. Any ideas on protecting top of drawer from dishwasher condensation? And if countertop has rusted through that spot, is it fixable with metal work or do we need to *gulp* think about replacing the entire bar top/counter?

Can you post pictures of your dishwasher and its relation to the drawer?

Remove the DW and build a condensation barrier around the DW enclosure. That's basically 6 mil poly attached to the underside of the counter, and down the sides of the cabinets. Then replace the drawer face, and anything else that was damaged by moisture.

Unfortunately that's not going to do anything about the cold metal bottom edge that's causing the dishwasher vapor to condense on it.

Does the dishwasher have a vent? Maybe leave the door open a while after unloading like a front load wash machine and be sure to habitually wipe the bottom metal edge of the top.

"And if countertop has rusted through that spot, is it fixable with metal work or do we need to *gulp* think about replacing the entire bar top/counter?"

If it's rusted through at the spot, you'd better start thinking new counters.

In some ways you are lucky as there is a water and moisture issue that hasn't ruined your entire kitchen yet.

As for the caulking behind the sink that is an issue that you would think in the last 50 years there would be addressed by the kitchen design industry. The back of a counter where a faucet is mounted should either have a counter angled into the sink or a top mounted sink that has an overflow back into the sink. Every person who shuts off their sink with wet hands soaks this area with water.

As for the dishwasher maybe it is what you are doing as there is no odd install here? Do you leave the door open with steam coming out of it?

I think replacing the counters would address the majority of the issues and also expose the possible causes that appear to be easy fixes. next time you wash your hand look at how much water is behind your faucet now multiply that by everytime you use it. Style of under mount sinks is the cause of a lot of this.

A couple thousand now can save you a lot more later.