Turmoil In German Commercial Real Estate Market Raises Red Flag For US Office REITs: 5 Stocks To Watch
Portfolio Pulse from Piero Cingari
Commercial real estate transaction volumes are falling sharply in many parts of the world, including Germany, Sweden, Ireland, and the UK. This is raising concerns that the U.S. office market may soon experience the same. The drop is attributed to rising interest rates, which have increased borrowing costs and demand for yields among potential property investors. Investment bank Stifel warns that the industry may face a decade of limited earnings growth. German residential landlords, such as LEG Immobilien SE, TAG Immobilien AG, and Vonovia SE have been downgraded to a Sell. Five U.S. REITs that could be vulnerable to these changes are Boston Properties Inc., SL Green Realty Corp., Alexandria Real Estate Equities Inc., Vornado Realty Trust, and Kilroy Realty Corporation.
July 06, 2023 | 12:39 pm
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NEGATIVE IMPACT
Alexandria Real Estate Equities Inc., a REIT specializing in the development, acquisition, and management of life science and technology campuses, could be affected by the global downturn in commercial real estate transactions.
Alexandria Real Estate Equities Inc., with its focus on life science and technology campuses, could be negatively impacted by the global downturn in commercial real estate transactions. This could lead to lower property values and reduced rental income.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Boston Properties Inc., a leading REIT focused on owning and operating office properties in major U.S. cities, could be impacted by the falling commercial real estate transaction volumes.
As a major player in the U.S. office real estate market, Boston Properties Inc. could be negatively impacted by the global downturn in commercial real estate transactions. This could lead to lower property values and reduced rental income.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Kilroy Realty Corporation, a prominent office REIT with a focus on West Coast markets, could be affected by the global downturn in commercial real estate transactions.
Kilroy Realty Corporation, with its focus on West Coast markets, could be negatively impacted by the global downturn in commercial real estate transactions. This could lead to lower property values and reduced rental income.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
SL Green Realty Corp., a REIT that primarily focuses on office properties in New York City, could be affected by the global downturn in commercial real estate transactions.
SL Green Realty Corp., with its focus on office properties in New York City, could be negatively impacted by the global downturn in commercial real estate transactions. This could lead to lower property values and reduced rental income.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Vornado Realty Trust, a major player in the office real estate market, could be affected by the global downturn in commercial real estate transactions.
Vornado Realty Trust, with its focus on office properties in New York City and Washington, D.C., could be negatively impacted by the global downturn in commercial real estate transactions. This could lead to lower property values and reduced rental income.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80