Singapore-listed US office Reits upbeat on outlook despite resistance in return to office
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Jude Chan
IT IS business as usual in the United States, as the world’s largest economy brushes off concerns over the Covid-19 pandemic.
But even as the crowds return – mostly without masks – to the streets and shopping malls, Singapore-listed real estate investment trusts (S-Reits) focused on the US office market are facing a worrisome trend: employees are returning physically to the office more slowly than expected.
Manulife US Reit recently reported that physical building occupancy averaged just 25.3 per cent for its first quarter ended March. This rose to 34 per cent the month after. While the number is a significant improvement from the 11.1 per cent registered in Q1 a year ago, the physical occupancy figures are still a far cry from the Reit’s expectations.
