Office REITs: Blood In The Streets Is Not Deep Enough

Abandoned office building - surplus to requirements. Wirestock/iStock Editorial via Getty Images Investment Thesis The overall office vacancy rate at the beginning of 2024 was 18.6%, a 30 year high, reflecting both reduced use and increased supply. Barry Sternlicht, CEO of Starwood Capital Group, is widely reported to estimate that what was a $3 trillion office property market is now worth only $1.8 trillion, incurring $1.2 trillion in losses. Commercial real estate in general and the office market in parti ...