Remote Work May Be a Long-Term Problem for SL Green
Work from home has been a cloud over the office real estate investment trust (REIT) sector ever since the COVID-19 pandemic. Given that employees seem to prefer it, and companies can save on office rent, investors have begun to worry about office vacancies and growth in rents. A new paper from the National Bureau of Economic Research took a look at office real estate in New York City and found a 45% decline in value from pre-pandemic conditions. What does this mean for the biggest landlord in New York City, SL Green (NYSE: SLG)?
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SL Green is an office REIT that focuses on New York City real estate. As of the end of June 2022, the company owned 50 buildings with about 27.2 million square feet of space, primarily in Midtown Manhattan. At the end of the quarter, the occupancy rate was 90.6%. Pre-pandemic, the company's occupancy rate was 94.3%.
Source Fool.com
