There's still a lot of uncertainty about the future of office demand. Employees have gotten comfortable working remotely and would prefer not to return to the office, at least not five days a week. Because of that, companies might not need as much office space in the future.
However, while employees prefer to work remotely, employers want them back in the office. Because of that, I think investors are overlooking the long-term recovery potential of the office sector. That's leading me to load up on office-focused real estate investment trusts ( REITs ) Cousins Properties (NYSE: CUZ) and SL Green Realty (NYSE: SLG) .
The pandemic accelerated several long-term trends, including migration to the warmer and cheaper Sun Belt region. People aren't the only thing moving south. Companies are increasingly relocating and expanding to the Sun Belt region because of its better business climate and to access its highly educated workforce. That's driving demand for office space in the region's largest cities.
For further details see:
Why I'm Buying REITs in This Overlooked Industry Hand-Over-Fist