Cousins Properties Incorporated (CUZ Quick QuoteCUZ - Free Report) , the Atlanta, GA-based real estate investment trust (“REIT”) and Hines, the Houston, TX-based real estate firm announced that the global technology major – Microsoft Corp.– has inked a lease deal at 8000 Avalon. The 43,000 square-foot lease transaction signed at the 224,000 square foot Class A office development in Atlanta, GA, with Microsoft anchoring the office development, is likely to be accretive for Cousins Properties, going forward.

Notably, Cousins Properties and Hines signed a joint venture deal to develop the $72 million Class A office project which is presently under construction. Microsoft is expected to take the initial occupancy in second-quarter 2017. With this lease deal, 8000 Avalon is currently 19% leased.

Past Performance

Cousins Properties is engaged in the acquisition, ownership, development and management of upscale office and mixed-use properties throughout the Sunbelt markets of the U.S., with special focus on Georgia, Texas and North Carolina. Last month, the company reported first-quarter 2016 funds from operation (“FFO”) of 21 cents per share that missed the Zacks Consensus Estimate by a penny but remained flat year over year. Results reflected a decline in rental property revenues.

Zacks Rank & Stocks to Consider

The stock presently has a Zacks Rank #3 (Hold).

However, investors interested in the REIT sector can consider stocks like Brookfield Canada Office Properties , Summit Hotel Properties, Inc. (INN Quick QuoteINN - Free Report) and W. P. Carey Inc. (WPC Quick QuoteWPC - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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