DXS
We continue to think that DXS is the best of the lot, in the REIT space, as a high risk higher reward return to office play.
CBA was in the papers today, with the CEO being amongst the latest executive to call people back in, at least 50% of the time.
They all say the same thing. Relationships are stronger, innovation and productivity better, command and control systems more effective.
If there was massive $$ to WFH for corporates, they’d keep it. But there isn’t. And it’s not like they haven’t tried, or given it time. They simply see better value in having a goodly chunk of the workforce colocated.
Revealed preferences and all that, in capitalistic economies.
Note, it doesn’t mean occupancy system wide back to pre-pandemic. Nick Bloom, the WFH specialist, convinced us it is meaningful and viable for many entities, and there is/will/has-been a great reshuffling in demand for space, and type, including what is called the “flight to quality”.
For A-grade, desirable locations, the future is “not dark”.
But current valuations are for “very dark”.
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