Economic RiskThe key risk to our view is lower-than-expected rental income arising from slower demand for office if economic growth slows either due to inflation and/or a recession.
Portfolio OccupancyPortfolio occupancy eased 2.0ppt qoq to 88.7% in 3Q24 due to known vacates at The Plaza Buildings in Bellevue, which management has cautioned previously.
Rental ReversionKORE incurred negative rental reversion of 3.5% in 3Q24, dragged lower by new leases at The Plaza Buildings in Bellevue, which come with lower rents but also lower tenant incentives.