A slowdown in tech hiring could have a big impact on the overall office market, according to one industry watcher.
BMO Capital Markets analyst John Kim told CNBC's 'Squawk on the Street' that he recently downgraded three office REITs with high exposure to the tech sector, noting that a pullback in tech hiring could ultimately weigh on REITs' revenue and earnings.
"When we talk about companies that are doing expansionary leases often in big developments and now they are cooling off in hiring, that could be a major issue for the office REITs," Kim said. A rash of tech companies have slowed hiring in recent weeks, with Microsoft announcing last Thursday that it would ramp down hiring for its Windows, Office, and Teams software groups, according to Bloomberg reports.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
