Office Stocks Post Biggest Rally Since Coronavirus Vaccine Announcement

Office shares saw the biggest one-day rally in three years last week, thanks to better-than-expected news on inflation.

REIT shares jumped an average of 11.5% on Nov. 14, The Wall Street Journal reported, citing Green Street data. That marks the biggest single-day jump since November 2020, when real estate stocks leaped off the back of news of a nearing emergency approval for a coronavirus vaccine.

The rally does nothing for the long-term outlook for these companies, which are facing elevated debt costs and reduced demand for office space, and prices have slid back since the rally.

“There’s a long road to recovery,” Alec Overby, senior analyst with Cohen & Steers, an investment manager and REIT investor, told the WSJ....

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RSK: I guess when you bottom out there is no other way but up...nowhere near pre-pandemic.