US REITs: 2Q26 Office REITs Preview

Research evidence excerpt

US REITs: 2Q26 Office REITs Preview

Equity Research

21 July 2026

US REITs

2Q26 Office REITs Preview

Favorable QTD updates and strong leasing momentum

position our coverage for 2026 guidance increases with

second quarter results and accelerating growth over the next U.S. REITs NEUTRAL

Unchangedseveral years. As a result, we raise our price targets.

U.S. REITs

Brendan Lynch, CFAOur view: Investor sentiment has improved throughout 2Q26 following continued leasing

+1 212 526 9428

strength, favorable company updates, and easing AI fears. Office shares bottomed around late

brendan.lynch@barclays.com

March and have materially outperformed the RMZ since (office REITs +35% to +54%, vs. the RMZ BCI, US

+15% since 3/31/26). We anticipate commentary on 2Q26 calls will reflect continued optimism

Annabelle Ayer(and positive guidance revisions) from our coverage and support current trading levels.

+1 212 526 7387

annabelle.ayer@barclays.comOur checks suggest demand remains strong and continues to broaden across markets and

BCI, US

submarkets as availability tightens. As a result, we anticipate increasingly favorable lease terms

(rents in NYC +2% y/y, SF +6% y/y). Further, shrinking sublease availability (NYC -14% y/y to 16m Eileen Gao

sqft, 1.9% of the installed base; SF -36% y/y to 6m sqft, 3.0% of the installed base) could +1 212 526 7836

eileen.gao@barclays.comaccelerate pricing growth. Less competition from sublease space is a dynamic we anticipate will

benefit pricing across markets.

Recent checks from a NYC-based broker include:

• The demand/rental rate dynamics are among the best of any cyclical upswing in the past ~40

years

• A year ago there were ~10 deals in NYC >$150 per sqft, now there are ~60 deals; even lower