Office REITs own and manage office real estate and rent space in those properties to tenants. Those properties can range from skyscrapers to office parks. Some office REITs focus on specific types of markets, such as central business districts or suburban areas. Some emphasize specific classes of tenants, such as government agencies or biotech firms.
Companies such as Amazon and Salesforce use office buildings owned by REITs.
Who invests in Office REITs?
Along with individuals who invest in REITs either directly or through Thrift Savings Plans (TSPs), 401ks, etc., institutional investors such as pension funds, endowments, foundations, insurance companies, and bank departments also invest in REITs.
How to Invest in Office REITs
There are currently 19 office REITs listed on the FTSE Nareit US Real Estate Indexes. Many investors acquire shares in these REITs via REIT mutual funds or exchange-traded funds (ETFs), but individuals can also invest directly in an office REIT with the help of a broker
Overview
8/31/2023, Source: FTSE
Number of REITs
19
Dividend Yield
5.59%
YTD Total Return
-7.48%
August Total Return
-2.59%
2022 Total Return
-37.62%
Quarterly Data
Source: Nareit T-Tracker
Source: Nareit T-Tracker
| Q2 2023 | 2023 | |
|---|---|---|
| FFO ($M) | $1,735 | $3,518 |
| NOI ($M) | $2,744 | $5,439 |
| Dividends paid ($M) | $1,018 | $2,616 |
| SS NOI | 2.30% | |
| Occupancy Rate | 88.35% |
Performance Details
As of Q2 2023, Source: CoStar Group, Inc
Net Absorption (sq. ft.)
-38,431,478
Net Completions (sq. ft.)
46,962,631
Performance Occupancy Rate
87.22%
Rent Growth YoY
1.0%
