TRG | The Bottom Line – 12/5

While data centers have sucked the air out of the room, with booming supply growth and ultra-high demand, office has been neglected. The post-covid work from home years caused office demand to be weak and new supply to decline. However, there is a silent and subtle recovery occurring. More companies have been bringing workers back to the office more days per week (see chart) and with less new supply, vacancy is declining. We believe this has helped and will continue to support companies who sell products into office space. TRG covers a number of these – HNI and SCS, TILE, and AWI. In our view, this is a trend for investors to monitor and find beneficiaries in, including TRG’s covered stocks just mentioned.