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Hudson Pacific Selling Property, Looking To Lease In Difficult Office Environment

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real estate investment trust Hudson Pacific Property are feeling the compounding effects of a slowing economy and a weak return-to-office movement, with office rentals continuing to stagnate for more than two years.

Hudson Pacific Properties headquarters in West LA.

The Los Angeles-based company reported a net loss of $6.8 million in the third quarter and a year-to-date net loss of $10.9 million in its most recent earnings call, but improved leasing velocities and a Third quarter earnings increased 14.4% to $260.4 due to the sale of divisional assets. M.

Hudson Pacific’s active office portfolio was 87.8% occupied and 89.3% leased at the end of the third quarter, according to its financial statements. A large tenant eviction in San Jose — Qualcomm left him 377K SF — pushed that number down.

Without that, 91.8% of the portfolio was leased, down just 44 basis points from the prior quarter, Hudson Pacific President Mark Lamas said on the company’s third quarter earnings call.

In Los Angeles, 98.9% of the active office portfolio is leased. The company says it already has two tenants of his who are interested in occupying the entire space at 168K SF. vacated by the NFL When I moved to a new office nearby SoFi Stadium at Inglewood.

HPP said leasing activity increased year-on-year, completing more than 380,000 SF of new and renewed leases in the third quarter, but said, “Given the slower-than-expected returns, tenants are more methodical in their decision-making process. HPP Chairman and CEO Victor Coleman said in a statement:

Leases are progressing well, but management noted that the leases are taking time to cross the finish line and are still seeing tenants delaying decisions on office space.

“We are executing and progressing deals with small and medium-sized tenants, but the speed is slower than we would like,” Ramaz said.

not like other office landlords, HPP does not hesitate to sell assets that no longer fit its strategy. HPP recently sold three properties and another is due for sale soon.

at least one pricing, Hollywood office property The price on Hollywood Boulevard was “cheaper than originally expected,” said Mr. Lamas, adding that HPP was pleased with the sale price. The property received four or five offers, but eventually accepted, according to executives. One from an all-cash purchaser.

The company also has two properties on the market in the Arts District. 132K SF Fourth and Traction at 963 Traction St. and the nearby Maxwell Building at 405 Mateo St. The Maxwell building was previously entirely leased to WeWork, which moved Since then, only part of the space has been subleased, reports The Real Deal. Fourth and traction is fully leased to online coupon company Honey.

As for potential new developments, Coleman said pre-leasing is important.

“You need an element of pre-leasing to break ground. The quantity of pre-leasing and the quality of tenants are clearly up in the air,” he said.

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