Doom And Gloom In Office Space Real Estate? Delinquency Data Tells Another Story
Portfolio Pulse from Hayden Buckfire
Despite the common narrative of doom in office real estate, delinquency data from the Federal Reserve suggests the situation may not be as dire. Delinquency rates in Q1 2024 were 1.16%, higher than pre-pandemic levels but far below historic peaks. The Real Estate Select Sector SPDR Fund ETF (XLRE) is down 4.75% in 2024 but saw a 1.19% increase on Tuesday.
June 04, 2024 | 7:24 pm
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The Real Estate Select Sector SPDR Fund ETF (XLRE) is down 4.75% in 2024 but saw a 1.19% increase on Tuesday. Delinquency data suggests that the pessimism around office real estate may be overstated.
The delinquency data indicates that while rates are elevated compared to pre-pandemic levels, they are far below historic peaks. This suggests that the market's pessimism may be overstated, potentially leading to a positive short-term impact on XLRE.
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