- COVID has decimated New York City's economy. High COVID infection rates and low office utilization rates fuel concerns about the impact of work from home on the NYC office market.
- NYC REIT has very low NOI margins and higher G&A expenses compared to its peers, contributing to negative cash flow generation.
- The discount to NAV will persist, as NYC offers very little investment upside.
- Paramount and SL Green are better options for exposure to New York City. Higher office exposure and greater profitability than NYC REIT make them compelling investments if you believe in a New York comeback.
- City Office REIT is attractive for secondary and tertiary markets, which have much more favorable outlooks than New York.
For further details see:
If You Believe In A New York City Comeback, Look Beyond The New Pure Play NYC REIT