Sector Spotlight
Leasing key for office REITs amidst poor
fundamentals and acquisition uncertainty
by Jennifer D. Duell
Despite ongoing con- cerns about the job market and weak op- erating fundamentals, office REITs are in a much better position
now than 12 months ago. Ef-
forts to de-lever their balance
sheets and improve liquidity
have been successful, putting
them in strong financial posi-
tions to focus on maximizing
their leasing and to search for
acquisition opportunities.
Boston Properties’ Prudential Center in Boston
Fundamental Hope
The publicly traded of-
fice REIT sector con-
sists of 15 companies
with a total market
capitalization of more
than $38 billion. By far,
the largest office REIT
is Boston Properties
Inc. (NYSE: BXP)
with a market cap of
$12.8 billion, followed
by SL Green Realty
Corp. (NYSE: SLG),
at a $5.4 billion market
cap.
