BMO cuts PT on office REITs amid AI‑driven demand risks

Kilroy Realty

25/03/2026 12:18

** BMO trims price targets across several office REITs, citing continued valuation pressure, constrained capital markets, and persistent downside risks tied to refinancing and longer-term demand uncertainty

** Brokerage says office demand, already strained by work-from-home, faces a larger structural risk from AI that could sharply reduce white-collar employment

** Adds that the sector has not fully recovered from COVID-era utilization declines, compounding long-term demand concerns

** Says discounted valuations limit access to external growth and increase earnings and valuation volatility

Companies
New PT
Old PT
Kilroy Realty
$34
$44
BXP
$68
$82
Vornado Realty
$33
$42
SL Green Realty
$55
$60

 (Reporting by Apratim Sarkar in Bengaluru)

 ((Apratim.Sarkar@thomsonreuters.com))