The office sector continues to face difficulties, but there is a distinct separation in performance between the amenity-rich premier office assets and the older, lower-quality buildings where few employees have returned to the office, according to S&P Global Market Intelligence in its U.S. Office Market report.
“While we continue to closely monitor the office sector, it is important to note that there exists a stark difference between the top-end premier properties and the broader office market,” said Chris Hudgins, senior research analyst at S&P Global Market Intelligence and author of the report. “Premier office buildings have shown increased leasing demand over recent years, while vacant office space continues to grow at lower-end office buildings.”
Office REITs continued to trade at large discounts to their estimated net asset value, and the discount has grown since the Federal Reserve signaled it would be more cautious about cutting intere
