Office landlords have been heavily impacted by the pandemic and now face uncertainty as tenants evaluate their needs in hybrid working environments.
Senior Analyst Alec Overby reviews the current state of the sector, including the changing work-from-home landscape, our outlook over the near and long term, as well as how we see valuations and potential for opportunity.
ABOUT THE AUTHORS
Alec Overby, CFA, Vice President, is a real estate securities managing analyst covering the office and regional mall sectors.
FURTHER READING
A new market regime for REITs
A regime shift to lower rates is a favorable backdrop for REITs, in our view.
The Real Estate Reel: The potential benefits of blending listed REITs and private CRE
Adding listed REITs at certain levels to a private real estate allocation has been shown to increase performance, reduce volatility, and limit drawdowns.
The Real Estate Reel: Is office as problematic as you think?
Office is not a very big part of the commercial real estate market. Bank exposure to office is also a lot lower than the media headlines would suggest. And newer buildings are actually still seeing strong demand.