The COVID-19 pandemic accelerated the implementation of distant and hybrid work fashions. The proliferation of those fashions has raised questions on the way forward for workplaces. Whereas folks have been working from residence, their employers have remained diligent in paying lease.
Information from Nareit’s T-Tracker® reveals that the workplace sector posted a mean quarterly funds from operations (FFO) decline of simply 1.9% from 2019 to 2020. Within the third quarter of 2022, quarterly FFO exceeded its pre-pandemic (2019 common) degree by 11.7%.
Regardless of considerations concerning the impression of work-from-home and uncertainty surrounding near-term workplace utilization, workplace REIT operational efficiency has been resilient. The outcomes from this pure office experiment will possible unfold over the approaching years.
- 8.8% : Holding tempo with inflation, workplace REIT web working earnings (NOI) grew by 8.8% year-over-year within the third quarter of 2022.
- 4.4% : Workplace employment, a key driver of workplace demand, posted a four-quarter achieve of 4.4% within the third quarter of 2022; it averaged 1.3% over the previous 20 years.
- 50% : Highlighting their environmental, social, and governance (ESG) commitments, 50% of workplace REITs reporting to GRESB, a worldwide ESG benchmark for actual property, have acquired its highest (5-star) ranking.
Supply By https://www.reit.com/information/articles/remote-and-hybrid-work-hold-keys-to-the-future-for-office-sector