Rent Reversal

As recently as 5/1/22, U.S. office building values, as measured by the share prices of office building REITS, were stable as tenants paid and occupancy rates steadily improved. However, since then values have plummeted by 50% as tenants renew for less space, occupancy rates have stalled at 50%, and interest rates are way up. For purposes of comparison, since 5/1/22 all U.S. REITS, including office properties, have declined about 12%.