Inovalis Real Estate Investment Trust T.INO.UN

RE:RE:Investing in office REITs like Inovalis is a sinking bet

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Inovalis REIT's problems aren’t just about high interest rates—it’s really about their super low occupancy rates. Sure, higher rates make things more expensive, but the real issue is that nobody wants office space anymore. With so many businesses going remote or moving to hybrid work, a lot of these office buildings are sitting empty, which kills their rental income.

Even if interest rates drop, it won’t fix the fact that they can’t fill their buildings. The demand for office space is shrinking fast, and Inovalis is stuck with properties that no one wants to rent. It's not just a temporary problem; the whole office sector is in decline. So even if rates get better, their real issue is how they’re going to make money with empty buildings. This looks like a long-term problem that won’t go away anytime soon.