Hudson Pacific Properties, Inc. (HPP) recently penned a new lease agreement with Uber Technologies, Inc. for an 88,134 square feet of space at its Class A office property, 1455 Market Street. The 10-year lease deal is slated to commence in first-quarter 2014.
As per the deal, Uber will occupy the entire fourth floor and backfills space of 1455 Market Streetbuilding. This space is occupied by property's largest tenant, whose lease term was scheduled to expire in 2017.
Spanning around 1.02 million square feet, this 1455 Market Street is a 22-story building and data center facility. The property is located on a 3.01-acre plot and already houses Square Inc., a leading electronic payment service provider. It is advantageously placed in the vibrant Civic Center / Van Ness submarket of San Francisco, which is one of the best technology and business hubs of the city. Moreover, it is close to the city's largest government and cultural firms such as City Hall, the Supreme Court of California and the corporate
The ideal location of 1455 Market Street makes it a desirable asset for firms catering to both national and local governmental agencies. The deal will help improve occupancy levels and boost rental revenue growth going forward.
Lately, Hudson Pacific has been inking lease deals to strengthen its tenant base. In May 2013, the company entered into a lease expansion and extension deal with NFL Media for 2 properties in South Calif., namely 10900 and 10950 Washington. The move enhanced Hudson Pacific's relationship with its existing media and entertainment tenants.
However, the demand for office space remains moderate amid a dismal environment with elevated unemployment levels and sufficient availability of space. This creates a pressure on rent and occupancies.
Hudson Pacific currently carries a Zacks Rank #5 (Sell). REITs that are performing better than Hudson Pacific include DCT Industrial Trust Inc. (DCT), Host Hotels & Resorts Inc. (HST) and CubeSmar! t (CUBE). All these stocks have a Zacks Rank #2 (Buy).
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