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“Being in the office sector is not necessarily the easiest place to be,” Orion’s (ticker: ONL) McDowell told a recent investing conference in New York, looking at his sparse audience.
The great debate in real estate is whether the vacant office buildings in many cities will ever refill. Office vacancy has reached nearly 25% in cities like San Francisco and Chicago. Office real estate stocks are down 50% from pre-Covid highs, while the REIT sector has lost 9.5% in the past year against the S&P 500’s 14.5% gain.
But offices are now just 3.4% of the $1 trillion public market for real estate investment trusts, or REITs. The broader REIT space isn’t as troubled. With valuations laid low, there are bargains amid the rubble.
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This article was originally published by a www.barrons.com . Read the Original article here. .