The worsening COVID-19 pandemic and the sluggish rollout of vaccines for the new coronavirus will negatively impact the office REIT sector in 2021, according to recent analysis by Mizuhou Securities.
While office REIT stocks shot up in November, buoyed by hopes that new COVID-19 vaccines could bring workers back to physical office spaces sooner than expected, there is now an increased risk that work-from-home will become a permanent substitute for working in the office, the report says.
Infections are skyrocketing as COVID fatigue mounts and a new, more virulent strain of COVID-19 rocks the country, and employers like Google and AirBnB are pushing their return-to-office dates until at least after the summer of 2021.
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