Recently Brandywine reported that sublease space represented 2.8% of its portfolio, which suggests that tenants have leased space in the firm's properties that they no longer want. This represents future risk to Brandywine's occupancy rate, in our view. Over the past five years, the rates that
Stubbornly high unemployment threatens to reduce tenants' demand for SL Green's office space, resulting in lower rents and occupancy rates.Many costs related to the ownership and management of office properties are fixed. If revenue falls, profitability and cash flow will fall disproportionately.In
Douglas Emmett's Los Angeles leasing market is poised for recovery but its stock price is dear.
As poorly capitalized biotechs fail, supply of lab space could periodically increase in Alexandria's markets, lowering the firm's ability to negotiate for higher rents. Larger, diversified health-care REITs are expanding their presence in lab space, which could drive down rents and increase
Persistently high unemployment threatens to reduce COPT's tenants' demand for its office space, resulting in lower rents and occupancy rates, especially in the near term. Longer term, federal government budget cuts may depress office demand in COPT's core Washington, D.C. and Baltimore-area
We like Boston Properties' focus on quality buildings in supply-constrained markets.
The lower rents and occupancy rates that befell Kilroy during the commercial real estate downturn will be slow to recover, hampering cash flow for years.Many costs related to the ownership and management of office properties are fixed. As revenue falls, profitability and cash flow will fall
Biomed's lab space portfolio caters to an attractive, if volatile, property niche.
Should a tenant leave, its former space is virtually unusable without modifications. The specifications the tenant installs make the space unattractive to new clients, as it would be extremely expensive--and time-consuming--to convert to their needs.Rapid changes in technology can lead to changes
Stubbornly high unemployment threatens to reduce tenants' demand for Mack-Cali's office space, resulting in lower rents and occupancy rates, especially in the near term.Many costs related to the ownership and management of office properties are fixed. As revenue falls, profitability and cash flow