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ARE
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78 days

More office space is being removed than added for the first time in at least 25 years

1. U.S. office market sees more demolitions than new constructions this year. 2. 23.3 million square feet slated for demolition or conversion; 12.7 million added. 3. Net absorption has been positive after six negative quarters. 4. Demand for office space stabilizes, benefiting major REITs like Alexandria. 5. 85 million square feet of office space ready for conversion in upcoming years.

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FAQ

Why Bullish?

The shift in office demand indicates potential for landlord revenue stabilization. Historical examples show similar market recoveries led to increased REIT valuations.

How important is it?

The article discusses a pivotal shift influencing the office market, directly impacting ARE's operations. The implications for demand and vacancy rates are crucial for turning around profitability.

Why Long Term?

Recovery trends will enhance market conditions over several quarters, benefiting long-term investors. Previous recoveries took time to manifest significant price changes.

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