Boston Properties Inc. and SL Green Realty Corp. reported stronger-than-expected quarterly earnings, a sign that the nation's largest office landlords have been able to boost revenue despite tepid job growth.
Boston Properties, which owns office buildings in New York, San Francisco and Boston, reported late Tuesday that fourth-quarter funds from operations, a key profit metric, was $1.21 a share, two cents higher than analysts projected.
Meantime, SL Green, Manhattan's largest office-building owner, reported late Monday that funds from operations rose to $1.02 a share in the fourth quarter, up from 97 cents in the same period last year and $1.01 in the third quarter. Analysts had projected per-share funds from operations of $1 for the fourth quarter.
http://online.wsj.com/article/SB10001424052970203920204577195423949341502.html
Showing posts with label office. Show all posts
Showing posts with label office. Show all posts
Thursday, February 2, 2012
Wednesday, January 25, 2012
Office & Industrial Report
The single tenant Office/Industrial market is highly competitive today, however, this competitiveness varies due to the nature of the tenant and the relevant market. High credit tenants in primary – especially urban – markets are among the highest in demand. According to Costar the market for single tenant NNN investments is averaging 10,000 transactions a quarter.
A majority of those were Retail spaces, Corporate and Regional HQ’s in Primary and Secondary Markets. Of these primary markets, none is more interesting than Washington DC. Many Investors and Corporations have excess cash holdings and seek less volatile investments than the open stock and bond markets.
This trend has been realized through the increased activity of Institutional Investors, Private Equity Groups, and both publicly and privately traded REIT’s D.C. is particularly fascinating with the inclusion of Government and Government Contracting Tenants such as SAIC, Booz Allen, Lockheed Martin, Northrop Grumman, etc.
Generally considered some of the most desirable tenants in terms of longevity and credit, Contractors are frequently subject to shorter leases (5-7yr periods depending on the time frame of their contract), but they also tend to renew due to the nature of the space amenities they often require. Government (Federal or State) tenants are typically a highly favored tenant as well.
Investors however must be comfortable with a “non appropriation of funds” clause which the government entity may exercise because of budgetary constraints. The DC metro, particularly Northern Virginia, has many prospects for advancement, such as: » Several New Developments in the Ballston/Rosslyn corridor through Arlington (attracting tenants into new facilities who seek proximity to DC).» Phase I Dulles Metro Rail expansion scheduled to be in operation in 2013 should help the Dulles/Tech Corridor and Tyson’s Corner. » BRAC’s (Base Realignment and Closure) southward shift along the I-395/I-95 corridor south to Stafford and Fredericksburg.
It is anticipated that these shifts will draw strong investment grade tenants into these areas in the form of regional headquarters, manufacturing facilities, single tenant satellite operations and those who need proximity to either the tech or DOD (Department of Defense) base. Each of these developments should be considered as having quality single tenant investment opportunities in the coming 12-18 months.
www.calkian.com
A majority of those were Retail spaces, Corporate and Regional HQ’s in Primary and Secondary Markets. Of these primary markets, none is more interesting than Washington DC. Many Investors and Corporations have excess cash holdings and seek less volatile investments than the open stock and bond markets.
This trend has been realized through the increased activity of Institutional Investors, Private Equity Groups, and both publicly and privately traded REIT’s D.C. is particularly fascinating with the inclusion of Government and Government Contracting Tenants such as SAIC, Booz Allen, Lockheed Martin, Northrop Grumman, etc.
Generally considered some of the most desirable tenants in terms of longevity and credit, Contractors are frequently subject to shorter leases (5-7yr periods depending on the time frame of their contract), but they also tend to renew due to the nature of the space amenities they often require. Government (Federal or State) tenants are typically a highly favored tenant as well.
Investors however must be comfortable with a “non appropriation of funds” clause which the government entity may exercise because of budgetary constraints. The DC metro, particularly Northern Virginia, has many prospects for advancement, such as: » Several New Developments in the Ballston/Rosslyn corridor through Arlington (attracting tenants into new facilities who seek proximity to DC).» Phase I Dulles Metro Rail expansion scheduled to be in operation in 2013 should help the Dulles/Tech Corridor and Tyson’s Corner. » BRAC’s (Base Realignment and Closure) southward shift along the I-395/I-95 corridor south to Stafford and Fredericksburg.
It is anticipated that these shifts will draw strong investment grade tenants into these areas in the form of regional headquarters, manufacturing facilities, single tenant satellite operations and those who need proximity to either the tech or DOD (Department of Defense) base. Each of these developments should be considered as having quality single tenant investment opportunities in the coming 12-18 months.
www.calkian.com
Tuesday, January 24, 2012
Judah Hertz is buying office buildings
California investor Judah Hertz is buying office buildings
After a four-year hiatus on the sidelines, California investor Judah Hertz is buying office buildings in small cities with some of the highest vacancies and lowest demand in the country. That probably means more torment for other landlords in these markets.
Attractive yields are increasingly luring investors like Mr. Hertz further afield to office markets in smaller cities and suburban areas. During most of the downturn, investors have focused on major cities like New York and Washington, but this has driven prices up and yields down, to under 5% in some cases.
"I should be in a very competitive situation," Mr. Hertz says.
http://online.wsj.com/article/SB10001424052970203735304577166670998014922.html
After a four-year hiatus on the sidelines, California investor Judah Hertz is buying office buildings in small cities with some of the highest vacancies and lowest demand in the country. That probably means more torment for other landlords in these markets.
Attractive yields are increasingly luring investors like Mr. Hertz further afield to office markets in smaller cities and suburban areas. During most of the downturn, investors have focused on major cities like New York and Washington, but this has driven prices up and yields down, to under 5% in some cases.
"I should be in a very competitive situation," Mr. Hertz says.
http://online.wsj.com/article/SB10001424052970203735304577166670998014922.html
Friday, December 2, 2011
A Tall Order for Stock Investors
The Malkin family of New York, which currently controls the 102-story landmark, filed papers with the Securities and Exchange Commission Tuesday saying that it has "embarked on a course of action" that could result in the skyscraper being included in a newly formed real- estate investment trust.
The building was valued in the summer at $1.65 billion, when the Malkin family refinanced the property. The building's net annual income is $63 million, according to Commercial Mortgage Alert.
The Malkin family stake in the skyscraper dates back to the days when Harry Helmsley bought a controlling stake in the property in the early 1960s with Lawrence Wien, the father-in-law of Peter Malkin. Mr. Malkin has since taken control but only after years of battling with Ms. Helmsley, who inherited her husband's interest.
Developed in the early 1930s by group of investors led by tycoon John Raskob, the Empire State Building hit the market during the Depression and sat mostly empty for years. Gradually, though, the building filled up with hundreds of tenants and became a Hollywood darling featured in movies such as "King Kong" and "Sleepless in Seattle."
http://online.wsj.com
The building was valued in the summer at $1.65 billion, when the Malkin family refinanced the property. The building's net annual income is $63 million, according to Commercial Mortgage Alert.
The Malkin family stake in the skyscraper dates back to the days when Harry Helmsley bought a controlling stake in the property in the early 1960s with Lawrence Wien, the father-in-law of Peter Malkin. Mr. Malkin has since taken control but only after years of battling with Ms. Helmsley, who inherited her husband's interest.
Developed in the early 1930s by group of investors led by tycoon John Raskob, the Empire State Building hit the market during the Depression and sat mostly empty for years. Gradually, though, the building filled up with hundreds of tenants and became a Hollywood darling featured in movies such as "King Kong" and "Sleepless in Seattle."
http://online.wsj.com
Wednesday, July 20, 2011
Tech Meets the Tenderloin
NNN Lease Market News
The growth in technology businesses that has boosted the San Francisco office market has spilled over into a blighted six-block stretch of Market Street that until now has missed out on most booms in the city's commercial-property valuations.
The "midmarket" office corridor on the southern edge of the Tenderloin district got its first boost in April when Twitter Inc. announced plans to relocate its headquarters to the gritty area better known for empty storefronts and government workers than Internet buzz.
http://online.wsj.com/article
Friday, April 22, 2011
Trophy Office Building For Sale In Northern Virginia
A 356,370-square-foot, Class A office building in the Rosslyn-Ballston Corridor is on the market. Cushman & Wakefield said Tuesday today that it has been selected by MetLife to market the property at 1320 North Courthouse in Arlington for sale or joint venture investment.
“Given the current market conditions and the building’s premier location, we believe this property will be well received by investors and developers looking to acquire high quality real estate in the D.C. area,” Senior Managing Director Susan Carras said in a statement. She and Senior Managing Director Brian Dawson are leading the assignment.
http://www.virginiabusiness.com/
“Given the current market conditions and the building’s premier location, we believe this property will be well received by investors and developers looking to acquire high quality real estate in the D.C. area,” Senior Managing Director Susan Carras said in a statement. She and Senior Managing Director Brian Dawson are leading the assignment.
http://www.virginiabusiness.com/
Wednesday, April 6, 2011
$1.5 billion in commercial real estate transactions during the first quarter In suburban Maryland
D.C.'s office vacancy rate rose in the first quarter, as new construction became available, according to a quarterly report from CB Richard Ellis.
The vacancy rate rose to just over 10 percent, after falling into single digits at the end of 2010. Class A office space saw tenant gains, offset by tenants leaving Class B properties. CBRE said.
On the sales side, $1.5 billion in commercial real estate transactions during the first quarter was equal to almost half of total sales in 2010.
http://www.bizjournals.com
The vacancy rate rose to just over 10 percent, after falling into single digits at the end of 2010. Class A office space saw tenant gains, offset by tenants leaving Class B properties. CBRE said.
On the sales side, $1.5 billion in commercial real estate transactions during the first quarter was equal to almost half of total sales in 2010.
http://www.bizjournals.com
Wednesday, February 9, 2011
Calgary's downtown office market experienced record leasing activity in 2010
CALGARY - Record leasing activity in the downtown office market in 2010 means job growth isn't far behind, says a commercial real estate expert.
Calgary's downtown office vacancy rate dipped to a low of 0.5 per cent in 2006 but then climbed to 15.7 per cent in 2009, said Savard. It ended 2010 at 14.4 per cent.
CITI is projecting the downtown vacancy rate to be 14 per cent this year and 12 per cent in 2012 despite the addition of the massive Bow tower project, and its 1.7 million square feet, and Eighth Avenue Place, and its one million square feet, to the office inventory.
Read more: http://www.calgaryherald.com
Calgary's downtown office vacancy rate dipped to a low of 0.5 per cent in 2006 but then climbed to 15.7 per cent in 2009, said Savard. It ended 2010 at 14.4 per cent.
CITI is projecting the downtown vacancy rate to be 14 per cent this year and 12 per cent in 2012 despite the addition of the massive Bow tower project, and its 1.7 million square feet, and Eighth Avenue Place, and its one million square feet, to the office inventory.
Read more: http://www.calgaryherald.com
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