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  5. ARE: Covid created the Virtual Office with many businesses opting to work from home using Zoom, Google Meet and MS Teams to name a few virtual meeting suppliers. [Alexandria Real Estate Equities Inc.]
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Investment Q&A

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Q: Covid created the Virtual Office with many businesses opting to work from home using Zoom, Google Meet and MS Teams to name a few virtual meeting suppliers. Is there a potential looming on the horizon that office space will have a high vacancy rates and create pressure on REIT's that carry these empty spaces down the road?
Asked by Christopher on June 12, 2023
5i Research Answer:

Certainly, and it has already started. Vacancy rates in many areas are at 20%, higher than they have been in decades, if not ever. Investors absolutely hate the commercial real estate space because of this, and this has been reflected in many REIT returns of the past 18 months.