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 senior research analyst covering the office and regional mall sectors.
FURTHER READING
The Real Estate Reel: The listed REIT selloff, valuations, and the private CRE correction
We see a regime change in what’s driving the recent listed REIT selloff. REIT valuations appear cheap. And the pattern in the decline in private real estate is reminiscent to what occurred in the wake of the 1990s S&L crisis, indicating the selloff and recovery could be a slow grind. Watch this month’s Real Estate Reel to find out what these data points mean for real estate investing.
Putting the recent selloff in U.S. listed REITs into perspective
We’ve argued over the course of this year that markets presented attractive entry points for listed real estate. Recent declines in listed REIT valuations, driven by macroeconomic uncertainty, do not alter this view.
The Real Estate Reel: We’re watching institutional allocations, CRE debt and property price disconnects
Institutional investors have increased their allocations to real estate, CRE debt delinquency rates are increasing but remain relatively low, and CRE valuations are down more than 16% so far this year. Watch this month’s Real Estate Reel to find out what these data points mean for real estate investing.