Back to the Boardroom: How 'Return to Work' is Revitalizing America's Office REITs

Easterly Government Properties DEA, Highwoods Properties HIW, and SL Green Realty Corp. SLG are office REITs uniquely positioned to capitalize on the emerging return-to-work trend as businesses and employees navigate the post-pandemic landscape. With a growing consensus around the value of in-person collaboration and the revitalization of urban centers, these REITs stand to gain from the renewed interest in office spaces.

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Easterly Government Properties, with its portfolio of properties leased to U.S. government agencies and a dividend of 9%, offers a stable investment in the office sector. The government’s enduring need for physical office spaces for various federal operations ensures consistent demand for DEA’s properties. The return-to-work trend could further solidify DEA’s occupancy rates and lease renewals, given the government’s role as a stable tenant committed to long-term occupancy.

Highwoods Properties focuses on high-growth Sunbelt and Mid-Atlantic markets with a dividend of 9%, where migration trends and economic growth are driving increased demand for office spaces. As companies in these regions ramp up their return-to-office plans, HIW’s strategically located, high-quality office buildings are poised to benefit. The appeal of the Sunbelt’s favorable business climate, coupled with Highwoods’ emphasis on sustainable and modern work environments, positions it to attract a diverse range of tenants seeking to optimize their office footprints in line with evolving work patterns.

SL Green Realty, as Manhattan’s largest office landlord with a dividend of 7%, offers direct exposure to the recovery of one of the world’s most iconic office markets. The gradual return of workers to New York City’s office buildings signals a rebound in demand for SLG’s prime office spaces. The company’s focus on premier properties in key locations, along with its active management and redevelopment efforts, aligns well with the increasing preference for high-quality, well-located office environments that can support the new hybrid work models.

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