Hudson Pacific Properties, Inc. HPP announced a major lease renewal in Silicon Valley with InvenSense, Inc., a supplier of micro-electro-mechanical systems sensor platforms.
Particularly, this lease, which runs through April 2025, involves 139,336 square feet of office space at 1745 Technology Drive. This space is a part of company's Concourse office complex in San Jose. The prior lease was set to expire in 2019.
Concourse is conveniently located at the junction of Technology Drive and Airport Parkway. Also, it is situated next to San Jose International Airport. The Class A office complex has seven buildings and spans across 944,386-square-feet.
Importantly, this early renewal indicates the rising demand for office space in the San Jose Airport submarket area and the strong interest of existing tenants in Hudson Pacific's premium properties . The company boasts a portfolio of more than 2.6 million square feet in the San Jose Airport submarket area.
Notably, the improving economy and a healthy job market environment are anticipated to stoke growth in the office real estate market in 2018. However, the pace of growth will likely remain modest with an increased supply of office space that has been curbing the pricing power of landlords and resulting in elevated concession levels. Also, rate hike adds to its woes.
Amid these, the Zacks Consensus Estimate for 2018 funds from operations (FFO) per share was revised 1% downward in a month's time.
Nevertheless, shares of the company have outperformed its industry
in the past three months, declining 5.4% compared with the industry's descend of 8.5%.
Currently, Hudson Pacific has a Zacks Rank #4 (Sell).
Stocks Worth a Look
A few better-ranked stocks from the same industry include Arbor Realty Trust ABR , Extra Space Storage Inc. EXR and Sotherly Hotels Inc. SOHO . All three stocks carry a Zacks Rank of 2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Arbor Realty Trust's Zacks Consensus Estimate for 2018 FFO per share have been revised 2.3% upward to 90 cents over the past month. Its share price has risen 0.7% in three months' time.
Extra Space Storage's FFO per share estimates for the current year have moved up 1.3% to $4.54 in a month's time. Its shares have gained 0.4% over the past three months.
Sotherly Hotels' FFO per share estimates for 2018 have been revised upward approximately 1.9% to $1.05 over the past month. The stock has gained 7.3% during the past six months.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) - a widely used metric to gauge the performance of REITs.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arbor Realty Trust (ABR): Free Stock Analysis Report Hudson Pacific Properties, Inc. (HPP): Free Stock Analysis Report Sotherly Hotels Inc. (SOHO): Free Stock Analysis Report Extra Space Storage Inc (EXR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research