New York City’s Offices Are Empty, How to Gamble on a Recovery
It is unquestionable that the forced shutdown by COVID-19 sent devastating shockwaves throughout New York City. While some markets are steadily recovering, the commercial real estate market still has a long way to go due to severely decreased office lease renewals, and a steep decline of commuters returning to their desks.
Nonetheless, some investors expect a slow recovery, and are contemplating which of the big three REITs – Vornado Realty Trust (VNO), SL Green Realty (SLG), and Empire State Realty Trust (ESRT) – have the potential to maximize on their returns.
According to Jonathan Litt, chief investment officer at Land and Buildings, a Greenwich, Conn., investment firm focused on real estate, “[t]here could be a phenomenal opportunity to invest in New York, but there has to be a massive reset in rents, occupancies, and valuations.”
Of the three REIT’s, Vornado looks promising, whose long-term investment posture and access to more than $2 Billion in cash elicits a feeling of security. Either way, a recovery is afoot, although it just might take a little longer than expected.