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

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