REIT’s 2015 Outlook
Many of the top performing real estate investment trusts (REITs) have come out with their recent earnings and quarterly updates. They all are active in the Washington, DC Metro markets and have weighed in on many of the trends they noticed throughout 4Q 2014 and the beginning of 2015. We listened in on the conference calls of Boston Properties, Columbia Property Trust, and Vornado to get a feel for what they had seen in the market and where they foresee opportunity going forward. Here are some takeaways:
- Focus on development and steer away from acquisition activity. As Vornado put it, “harvest, over invest.”
- Capital markets have been favorable and have created a great market for sellers.
- San Francisco is the hottest leasing market of the major metro areas.
- New York City is seeing a movement towards being a landlord’s market.
- DC is still lagging behind these other major markets due to GSA and Law firm downsizing. Most see the market as “recovering”
- Oil prices and strong US dollar have not been a deterrent.
- REIT’s expect that interest from foreign investors will continue to be high.
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By: Nathan Edwards
Director of Research, DTZ- Washington, D.C.
Email Nathan: Nathan.Edwards@dtz.com
Contributor: Joe Wood, Research Analyst, DTZ
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