It's hard nowadays for a value-add office investor, says Piedmont Office Realty Trust CEO Don Miller, who's also speaking at our Bisnow Office Leasing & Development Expo (BOLD). Such opportunities are very few and far between; everything is fully priced, he says. Advice: If anybody tells you they're doing a value-add deal, "you need to raise your eyebrows.” Whereas once vacancy was a liability, in many of the country's top markets, empty space is being priced at a premium, he notes.

Piedmont is instead focusing on replacement cost when evaluating potential office building purchases. Most recently, the firm bought 1155 Perimeter Center West, a 377k SF office building in suburban Atlanta and corporate home to AirWatch, for more than $80M (or $210/SF). Don says to replicate that building today, a developer would be shelling out more than $300/SF. Don says Piedmont will both buy and sell up to $200M in assets this year and could potentially vacate secondary markets like Detroit and Phoenix.