There are research reports indicating over 60% of knowledge workers either prefer to work remotely or have hybrid working arrangement. I am sure this figure is somewhat elevated because we are still coming out of COVID, but there is a core % of folks who are just going to work remotely or hybrid.
What this means to office REIT’s? A significant deceleration of demand for protracted period, until a new bottom is established. Lease renewals are going to be difficult.
Between retail and Office REIT, I will not touch Office REIT.
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Hi Kingran!
The only blue chip office REIT out there now is the life sciences office REIT, ARE. (Long ARE.) And it is doing quite well. But otherwise, I’m inclined to agree with you about office REITs in general.
That said, I have a small investment in a risky office REIT, made even riskier by the fact that it invests exclusively in class A Manhattan office buildings.
David
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That said, I have a small investment in a risky office REIT, made even riskier by the fact that it invests exclusively in class A Manhattan office buildings.
And that office REIT is SLG.
David
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That said, I have a small investment in a risky office REIT, made even riskier by the fact that it invests exclusively in class A Manhattan office buildings.
Risk is what generates alpha. Why you like them?
Why you like them?
Hi Kingran!
I invested, modestly for me, in SLG after hearing CNBC’s Halftime Report investment committee member, Jenny Harrington, one of that team’s long-term investors, recommend it. I followed it after that and listened to the SLG CCs and read their financials. What really caught my eye was their enthusiasm for the Class A Office market in Manhattan. Still, I recognize that it remains a very risky venture, even for me. But as you say, that’s what may very well generate alpha for me.
David
i have O, WPC, Stag, LTC,and GOOD…I sold LAND a while back. It got crazy
high and after reading the book “Perilous Bounty” by Tom Philpott i sold it all.
LAND buys specialty farms. I love their concept but the amount of water it takes to
grow many of these crops and the location of where they are grown concerns me greatly.
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Hi cgrinder!
Water is and will continue to be a serious issue for California, Arizona, and Nevada.
David
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The next civil war will be fought on water.
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Water is and will continue to be a serious issue for California, Arizona, and Nevada.
Montana is having problems with water. This drought is affecting the whole West.
https://www.drought.gov/states/montana#:~:text=Since%202000%….
Andy
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