Some interesting survey work done on the “work from home” phenomenon.
From a peak of ~60% of working days spent at home to a “new normal” of around 30%.
In other words, forcing staff back to the office is likely a very bad idea for morale and productivity, and almost certainly would induce material churn.
From a stock perspective, there’s some modest good news, I suppose. Office REITs have been crushed. However, for those with decent assets (say, buildings newer than 15 years old), the ability to attract and retain occupancy should be okay.
The hybrid “home and work” approach still means you need a footprint.
We’ve got DXS (and LLC, but that’s a different proposition), and yet we are still underweight the REITs in general, which has been a prudent move all in all.
That DXS trade hasn’t worked, but the above gives us some reason not to just flick the holding.
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