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2 Office REITs With Solid Financial Positions

Boston Properties looks fairly valued, and Vornado is cheap today as we relaunch coverage of these no-moat firms.

2 Office REITs With Solid Financial Positions
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Brad Schwer: We recently relaunched coverage of office REITs Boston Properties and Vornado with no-moat ratings. Both companies own and operate Class A office and retail space in key markets such as Washington, D.C., San Francisco, and Manhattan. I think its important to highlight three key takeaways. 

First, we don't see any structural competitive advantages in either company to support a moat. Substitutes for Class A office space are everywhere, and Boston Properties and Vornado typically have a low- to midsingle-digit market share depending on the location. 

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Brad Schwer does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.