Office REITs have taken a significant blow from the COVID pandemic. As most office workers switch to teleworking, it will be difficult to fill leases. While many will likely come back to the office, the rise of teleworking infrastructure is likely to cause a lasting increase in vacancy rates.
More immediately, the situation has seen a drastic decline in commercial real estate transactions. It seems increasingly likely this will become a lasting recession which will cause property capitalization rates to increase (and lower commercial property values). Additionally, some businesses are likely to go out of