3 REITs You Shouldn't Give Up on Just Yet
Office real estate investment trusts (REITs) are still feeling the impact of the coronavirus pandemic. But you shouldn't give up on names like Boston Properties (NYSE: BXP), Kilroy Realty (NYSE: KRC), or Cousins Properties (NYSE: CUZ). Things are tough today, but this trio has what it takes to survive.
It's not hard to understand why 2020 was a challenging year for office REITs, with nonessential businesses shut and employees being asked to work from home. Thus, vacancy rates rose for most office REITs, and the headwinds are far from over. For example, industry bellwether Boston Properties, with a market cap of $17 billion, has seen its occupancy continue to fall in 2021. At the end of the third quarter, occupancy for the REIT sat at 88.4%, down from 90.1% at the end of 2020. This was at a time when other hard-hit sectors, such as retail, have already started to see occupancy rates rebound.
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Source Fool.com