A big company that counts how many empty offices there are in America found out that there are more empty spaces than ever before since the time when your grandparents were kids. This is because too many buildings were made and people don't need to go to the office as much as they used to. Read from source...
- The title is misleading and sensationalized. It does not reflect the actual data or trends presented in the article. A more accurate title would be "US Office Vacancies Increase Due to Economic Factors".
- The article relies heavily on statistics from Moody's Analytics, without providing any context or explanation for how they are calculated, what assumptions they involve, or how they compare to other sources of data. This makes the numbers less credible and trustworthy.
- The article uses vague and ambiguous terms such as "overzealous construction" and "changing work habits". These phrases do not capture the complexity and nuance of the situation, and may imply causal relationships that are not supported by evidence or logic. A more precise and balanced language would be "US Office Vacancies Increase Due to Economic Factors, Overbuilding and Remote Work".
- The article compares the US commercial property market with China's, without explaining why this comparison is relevant or meaningful. China has a different political, economic, and cultural system than the US, which may affect its property market in ways that are not applicable to the US context. A more informative and fair comparison would be with other developed countries or regions that have similar characteristics and challenges as the US.
- The article mentions some of the impacts and consequences of the increasing office vacancies, such as lower rent prices, higher vacancy rates, and fewer investment opportunities. However, it does not explore the possible benefits or opportunities that may arise from this situation, such as more flexible and creative workspaces, greater diversity and innovation in the real estate sector, or new business models and niches that cater to the changing needs and preferences of workers and employers. A more holistic and balanced perspective would consider both the challenges and opportunities that the office vacancies present.
Possible recommendation: Short Crown Castle (CCI) and Boston Properties (BXP), long Austin Cityfund, Dallas Cityfund or Miami Cityfund.
Risks: The office vacancy crisis may worsen due to the ongoing pandemic, remote work trend, economic downturn or increased competition from online platforms. The city-specific funds may underperform if their respective local markets do not recover or experience lower demand for real estate. The short positions on CCI and BXP may incur losses if the stock prices rally due to positive earnings surprises, dividend increases or mergers and acquisitions activity.