Investors Are Still Down On Office Owners, While REITs Benefiting From Digital Economy Have Soared
December 13, 2021 | Jon Banister | Bisnow
The stock market is still bearish on companies that own large portfolios of office buildings, with investors concerned about the uncertain future of the workplace, while many REITs that own in trendier sectors like industrial and data centers have outperformed the market this year.
The office REIT sector is still 8.1% below its pre-pandemic level as of Nov. 30, making it the second-worst-performing real estate sector ahead of hotels, according to Nareit’s 2022 Outlook report, released last week.
The industrial, data center and telecommunications infrastructure REIT sectors have experienced stock bumps of 57%, 44% and 24%, respectively, from their pre-pandemic level, the report found. These three sectors reflect investor sentiment that the future of the economy will be more focused on digital communications, while investors worry about what the future holds for the office.
