Slow Return to Work Pummels Office Stocks

Vacancies climb and rents sink amid a stalled return-to-office rate

Share prices for some of the largest office landlords have dropped to near historic lows, reflecting a sluggish return-to-office rate and a rise in the number of investors betting that these stocks will keep falling. 

SL Green’s share price closed at $22.54 on Friday. That is barely above the New York office firm’s 1997 initial-public-offering price and a fraction of its post-global-financial-crisis peak of more than $140 in 2015. Vornado Realty Trust, which owns marquee office buildings in San Francisco, Chicago and New York,...