Office stocks post biggest rally in three years. Their real estate problems remain.

Shares of struggling office owners saw their biggest one-day gain in three years last week, after inflation data came in below expectations and expectations grew that the Federal Reserve would no more raising interest rates.

Shares of office real estate investment trusts rose an average of 11.5% on Tuesday, according to real estate analytics firm Green Street. This is the largest daily increase since November 2020, when an even larger increase was triggered by the announcement of a Covid-19 vaccine.