Real estate investment trusts (REITs) have long been a popular stomping ground for income seekers. Thanks to the combination of tax-advantaged dividend payments and inflation-protected growth, REITs continue to offer the right combination of total returns for investors. However, not all property subsectors have experienced growth over the last few years. In fact, some have been downright abysmal.
In this case, we’re talking about office properties.
Thanks to a host of factors—from the pandemic and the growth of remote work to rising rents and layoffs, the office sector has suffered while other property sectors have continued to post strong returns. And lately, the chorus of pain has gotten stronger, with several high-profile dividend cuts.
But there may be hope. Trends may be finally pointing in the office REITs’ direction and that could make them a buy, albeit a risky one.
Be sure to check out Best Real Estate Dividend Stocks List section to explore some of our best rated real estate stocks.
