DLR and GGP at REITWeek
Want to get a jump-start on upcoming deals? Meet the major Chicago players at one of our upcoming events!
|DLR CEO Mike Foust (center) and CFO & CIO Bill Stein (with ISI Group’s Steve Sakwa, left) NAREIT's REITWeek in NYC. Mike says that two categories are driving company growth: Corporations and IT departments are consolidating for efficiency and cost reductions, while small and mid-sized companies are moving to the cloud. He says Chicago is a strong market and LA is full. In Silicon Valley and Northern Virginia, rising demand has led to a balance in supply/demand. Financial services continue to drive New Jersey and London, while European markets are 95% leased. DLR is bullish about Asia-Pac, and in April entered Hong Kong in a JV with Savvis.|
|General Growth Properties CEO Sandeep Mathrani says the retail REIT continues to focus on Class-A regional malls (which account for 80% of its income), disposing of $2.5B and over 30M SF of Class-B malls, strip centers, and office space in ‘11. Now it’s all about leasing—it has 86% permanent occupancy and is aiming for 92% by ‘14. It started $450M of redevelopment this year. Many retailers are expanding footprints or number of stores, particularly international ones like Zara, Topshop, H&M, and Uniqlo. GGP will continue shedding office and strip space, and plans to let go of eight to 10 non-core malls while growing its Brazilian platform.|