Here's Why It Is Still Too Early to Buy SL Green
Concerns about the commercial real estate sector have been festering for a while, and ground zero for commercial real estate woes is office properties. The COVID-19 pandemic proved the efficacy of work-from-home, and a tight labor market has given workers the upper hand in negotiations over a return to the office. This has kept office vacancy rates elevated, which has in turn hit office-property valuations. SL Green (NYSE: SLG) just reported second-quarter earnings that beat Street expectations. Is it time to dip a toe into the office real estate investment trust (REIT) sector?
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SL Green is known as Manhattan's landlord, with a portfolio of 30 buildings with 33.1 million square feet of gross leasable area in office and mixed-use properties. Most of its assets are in the top tier of quality, known as Class A properties.
Source Fool.com
