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Federal Realty's (FRT) 700 Santana Row Now 100% Pre-Leased
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Recently, Federal Realty Investment Trust (FRT - Free Report) inked a long-term lease with Splunk Inc., for 301,000 square feet of office space, at the company’s Class-A mixed used development project — 700 Santana Row. With this lease, the development is now 100% pre-leased.
The 319,000-square-foot building, currently under construction, is located at the intersection of Santana Row and Olsen Drive. When completed in 2019, it will offer retail space on the ground floor and seven levels of office area.
On-site amenities will also include 1,300 parking spaces, private terraces and a top-class urban plaza designed according to LEED Silver standards.
Notably, the mixed-use environment, along with the property’s strategic location, worked on Splunk’s advantage, offering the company with significant employee recruitment and retention opportunities. Further, it is in line with the lessee’s focus to expand footprint in the San Jose region.
Importantly, Santana Row has emerged as one of the most successful mixed-use neighborhoods in San Jose, offering 50 shops, 30 dining options, nine personal service businesses, 219 residential units, 615 rental apartments, and the notable Hotel Valencia. Also, the region offers an aggregate of 690,000 square feet of office space through 700 Santana Row, 500 Santana Row, 300 Santana Row, and other such mixed-use properties. These office spaces, which are 100% leased, count top companies, including Cushman & Wakefield and Newmark Knight Frank, Cisco, AvalonBay Communities, and Satellite Healthcare, among their tenants.
Mixed-use developments have gained popularity for their solid neighborhood character, greater housing variety and density. Such developments bring down the distance between housing, workplaces, retail businesses, as well as other amenities and destinations. Hence, such developmental work enables companies to grab attention of target people, who prefer to live, work and play in the same area — a trend that drove development in several other urbans in the United States. Also, office spaces at such locations help developers command higher rents due to the highly amenitized environment offered.
With more than 20 years of mixed-use experience, Federal Realty seems well positioned to lever on this trend and drive leasing activity at its property. Furthermore, the company anticipates mixed-use developments to contribute 31% of property operating income (POI) for 2018.
Although, amid fast-changing retail environment, the company is making concerted efforts to redevelop its portfolio, such initiatives involve considerable upfront costs and tend to drag down near-term profitability.
Also, shares of this Zacks Rank #3 (Hold) company have outperformed the industry over the past six months. The stock has appreciated 13.5% compared with the industry’s rally of 13.1%.
Key Picks
Better-ranked stocks from the REIT space include NorthStar Realty Europe Corp. , Park Hotels and Resorts, Inc. (PK - Free Report) and PS Business Parks, Inc. . While NorthStar Realty flaunts a Zacks Rank of 1 (Strong Buy), Park Hotels and Resorts and PS Business Parks carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NorthStar Realty’s Zacks Consensus Estimate for 2018 FFO per share has been revised 5.5% upward over the past 30 days. Its shares have gained 34% in the past six months.
Park Hotels and Resorts’ FFO per share estimates for 2018 witnessed 1.3% upward revision in 30 days’ time. Its shares have appreciated 24% over the past six months.
PS Business Parks’ FFO per share estimates for the current year moved up marginally in the past 30 days to $6.39. The stock has rallied 16.6% in six months’ time.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Federal Realty's (FRT) 700 Santana Row Now 100% Pre-Leased
Recently, Federal Realty Investment Trust (FRT - Free Report) inked a long-term lease with Splunk Inc., for 301,000 square feet of office space, at the company’s Class-A mixed used development project — 700 Santana Row. With this lease, the development is now 100% pre-leased.
The 319,000-square-foot building, currently under construction, is located at the intersection of Santana Row and Olsen Drive. When completed in 2019, it will offer retail space on the ground floor and seven levels of office area.
On-site amenities will also include 1,300 parking spaces, private terraces and a top-class urban plaza designed according to LEED Silver standards.
Notably, the mixed-use environment, along with the property’s strategic location, worked on Splunk’s advantage, offering the company with significant employee recruitment and retention opportunities. Further, it is in line with the lessee’s focus to expand footprint in the San Jose region.
Importantly, Santana Row has emerged as one of the most successful mixed-use neighborhoods in San Jose, offering 50 shops, 30 dining options, nine personal service businesses, 219 residential units, 615 rental apartments, and the notable Hotel Valencia. Also, the region offers an aggregate of 690,000 square feet of office space through 700 Santana Row, 500 Santana Row, 300 Santana Row, and other such mixed-use properties. These office spaces, which are 100% leased, count top companies, including Cushman & Wakefield and Newmark Knight Frank, Cisco, AvalonBay Communities, and Satellite Healthcare, among their tenants.
Mixed-use developments have gained popularity for their solid neighborhood character, greater housing variety and density. Such developments bring down the distance between housing, workplaces, retail businesses, as well as other amenities and destinations. Hence, such developmental work enables companies to grab attention of target people, who prefer to live, work and play in the same area — a trend that drove development in several other urbans in the United States. Also, office spaces at such locations help developers command higher rents due to the highly amenitized environment offered.
With more than 20 years of mixed-use experience, Federal Realty seems well positioned to lever on this trend and drive leasing activity at its property. Furthermore, the company anticipates mixed-use developments to contribute 31% of property operating income (POI) for 2018.
Although, amid fast-changing retail environment, the company is making concerted efforts to redevelop its portfolio, such initiatives involve considerable upfront costs and tend to drag down near-term profitability.
Also, shares of this Zacks Rank #3 (Hold) company have outperformed the industry over the past six months. The stock has appreciated 13.5% compared with the industry’s rally of 13.1%.
Key Picks
Better-ranked stocks from the REIT space include NorthStar Realty Europe Corp. , Park Hotels and Resorts, Inc. (PK - Free Report) and PS Business Parks, Inc. . While NorthStar Realty flaunts a Zacks Rank of 1 (Strong Buy), Park Hotels and Resorts and PS Business Parks carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NorthStar Realty’s Zacks Consensus Estimate for 2018 FFO per share has been revised 5.5% upward over the past 30 days. Its shares have gained 34% in the past six months.
Park Hotels and Resorts’ FFO per share estimates for 2018 witnessed 1.3% upward revision in 30 days’ time. Its shares have appreciated 24% over the past six months.
PS Business Parks’ FFO per share estimates for the current year moved up marginally in the past 30 days to $6.39. The stock has rallied 16.6% in six months’ time.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>