Office REITs focus specifically on office real estate. Office REITs own, manage or develop office buildings. The properties held by office REITs range from skyscrapers to office parks with many types of properties in between. Office REITs may choose to focus on specific markets, such as urban business hubs or suburban areas. Another common strategy is for office REITs to focus on specific groups of tenants, such as tech firms or government agencies.
The Office REIT sector has struggled throughout the coronavirus pandemic, as long-term work from home policies have diminished the need for office space and some tenants have stopped paying their rent, asked for rent relief, or have gone out of business. The shift to remote work has not only decreased the demand for new office space, but it also has resulted in an increased risk of lease non-renewal, as companies realize that rent is a cost that can be cut for the foreseeable future.