Boston Properties' 399 Park Avenue Property Now 93% Leased
Zacks Investment Research | Dec 26, 2018 10:01PM ET
Boston Properties, Inc.’s (NYSE:BXP) properties are witnessing favorable demand from new tenants. Recently, the company announced that it has struck a deal with Millennium Management to lease out more than 300,000 square feet of space at the company’s 399 Park Avenue property.
With this long-term lease, the property in midtown New York City will be 93% leased. The 40-story Class A office building spans 1.6 million square feet of space. It is being modernized and will get an entrance from the Park Avenue front, rooftop terrace gardens and new destination-driven elevators. While renovations are nearing completion, the overhaul has most likely attracted the new tenant.
Further, per management, the investment management firm’s choice of 399 Park Avenue as its principal location reflects the property’s strategic location at midtown Manhattan. Notably, the area is emerging as a preferable location for most prominent corporations.
In fact, with economic improvement and recovery in the job market, healthy growth in demand for office spaces is expected to continue. This is because, as the economy revives, business grows and therefore, corporate sectors seek expansion, renting more space to accommodate the increased workforce. This too is providing significant impetus for the company’s properties.
Banking on this favorable trend, Boston Properties continues to explore opportunities to boost its portfolio quality through redevelopment efforts. In fact, as of Sep 30, 2018, the company had 14 projects under development or redevelopment, aggregating 7.5 million square feet of space, with $4.1 billion of the company’s share of investment.
Such efforts will likely enable the company to retain its tenants and improve its leasing and occupancy metrics in the upcoming quarters.
Boston Properties carries a Zacks Rank #2 (Buy), at present. You can see Original post
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