Boston Properties’ Owen Thomas (Boston Properties, Getty)
Whereas all eyes will probably be tuned to Federal Reserve Chair Jay Powell’s press convention Wednesday for indications of whether or not the U.S. will slide right into a recession, one of many nation’s largest workplace landlords says it’s already right here for business actual property.
“However the operating debate on whether or not the U.S. economic system will expertise a tough or tender touchdown, business actual property markets are at the moment in a recession,” Boston Properties CEO Owen Thomas stated on the corporate’s fourth-quarter earnings name Wednesday morning.
Layoffs within the tech sector are spreading into different areas like finance and authorized, Thomas stated, prompting workplace tenants to chop prices and provides again area. However high-end portfolios like Boston Properties’ will outperform the market in a downturn, he added.
The corporate reported funds from operations of just about $293 million for the fourth quarter, up from $243 million in the identical interval final yr. Its full-year FFO was about $1.2 billion, up roughly 15 % from 2021.
Thomas stated Boston Properties solidified its stability sheet by issuing a $750 million inexperienced bond providing, its fifth since 2018, and negotiating a $1.2 billion unsecured time period mortgage facility, which it used to repay a $730 million mortgage set to mature this Might.
Firm president Doug Linde stated it’s uncertain that Boston Properties will see constructive absorption this yr throughout its greater than 50 million-square-foot portfolio.
“I can level to examples of firms in our portfolio which can be rising, however we’re the primary to acknowledge that the pool of purchasers’ general demand that we served is unlikely to be rising the general footprint in 2023,” he stated.
Boston Properties’ Owen Thomas (Boston Properties, Getty)
Whereas all eyes will probably be tuned to Federal Reserve Chair Jay Powell’s press convention Wednesday for indications of whether or not the U.S. will slide right into a recession, one of many nation’s largest workplace landlords says it’s already right here for business actual property.
“However the operating debate on whether or not the U.S. economic system will expertise a tough or tender touchdown, business actual property markets are at the moment in a recession,” Boston Properties CEO Owen Thomas stated on the corporate’s fourth-quarter earnings name Wednesday morning.
Layoffs within the tech sector are spreading into different areas like finance and authorized, Thomas stated, prompting workplace tenants to chop prices and provides again area. However high-end portfolios like Boston Properties’ will outperform the market in a downturn, he added.
The corporate reported funds from operations of just about $293 million for the fourth quarter, up from $243 million in the identical interval final yr. Its full-year FFO was about $1.2 billion, up roughly 15 % from 2021.
Thomas stated Boston Properties solidified its stability sheet by issuing a $750 million inexperienced bond providing, its fifth since 2018, and negotiating a $1.2 billion unsecured time period mortgage facility, which it used to repay a $730 million mortgage set to mature this Might.
Firm president Doug Linde stated it’s uncertain that Boston Properties will see constructive absorption this yr throughout its greater than 50 million-square-foot portfolio.
“I can level to examples of firms in our portfolio which can be rising, however we’re the primary to acknowledge that the pool of purchasers’ general demand that we served is unlikely to be rising the general footprint in 2023,” he stated.
