Hudson Pacific Properties Signs Nearly 300,000 Square Feet of Leases across the San Francisco Peninsula and Silicon Valley

Rhea-AI Summary

Hudson Pacific Properties (NYSE: HPP) announced that it has signed 296,475 square feet of new and renewal deals this year, addressing its largest expiration in 2021, a 207,857-square-foot lease renewal with Google in Palo Alto. The renewal lease starts in December 2021, reducing remaining expirations to 7.5% of annualized base rent, with in-place rents 20% below market. The company noted an increase in leasing activity, with 143,000 square feet signed in Q4 2020, indicating a positive trend as demand for office space rebounds.

Positive

• Signed 296,475 square feet of new and renewal leases year-to-date.
• Successfully renewed a significant lease with Google, addressing major expirations.
• Reduced remaining expirations to 7.5% of annualized base rent.
• Leases are 20% below market rates, potentially attracting new tenants.
• Notable uptick in leasing activity, particularly in Q4 2020.

Negative

• None.

Hudson Pacific Properties, Inc. (“Hudson Pacific”) (NYSE: HPP) today announced that year-to-date it has signed 296,475 square feet of new and renewal deals across the San Francisco Peninsula and Silicon Valley. In doing so, the company addressed it’s largest 2021 expiration, Google’s 207,857-square-foot lease at 3400 Hillview in Palo Alto’s Stanford Research Park. The seven-year renewal lease will commence in December 2021.

“It’s early March and we’ve already successfully addressed our largest 2021 expiration,” said Victor Coleman, Chairman and Chief Executive Officer of Hudson Pacific Properties. “Based on our strong year-to-date activity in our Peninsula and Valley markets alone, we’ve reduced our remaining expirations for the year to 7.5% of our annualized base rent with in-place rents for those leases approximately 20% below market. We anticipate this momentum will continue given the demand for content, record venture capital flows and further economic re-opening and vaccine distributions, all of which will drive growth and more tenants back to the office in our markets.”

In mid-February, during Hudson Pacific’s fourth quarter 2020 earnings call, the company noted an uptick in leasing activity across its markets, citing a notable increase in small tenant activity along the San Francisco Peninsula and in Silicon Valley. The company signed 20 new and renewal leases in the fourth quarter totaling 143,000 square feet collectively in those markets, or about 53% of its total fourth quarter leasing activity.

About Hudson Pacific Properties

Hudson Pacific is a real estate investment trust with a portfolio of office and studio properties totaling nearly 20 million square feet, including land for development. Focused on premier West Coast epicenters of innovation, media and technology, its anchor tenants include Fortune 500 and leading growth companies such as Netflix, Google, Square, Uber, NFL Enterprises and more. Hudson Pacific is publicly traded on the NYSE under the symbol HPP and listed as a component of the S&P MidCap 400 Index. For more information visit HudsonPacificProperties.com.

Forward-Looking Statements Regarding Hudson Pacific Properties

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond Hudson Pacific’s control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect Hudson Pacific’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, Hudson Pacific disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause Hudson Pacific’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in Hudson Pacific’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by Hudson Pacific from time to time with the SEC.

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FAQ

What recent leasing activity did Hudson Pacific Properties (HPP) announce?

Hudson Pacific Properties announced it signed 296,475 square feet of new and renewal leases year-to-date.

What significant lease renewal did HPP complete in 2021?

HPP renewed a 207,857-square-foot lease with Google, set to commence in December 2021.

How much has HPP reduced its remaining expirations for 2021?

HPP reduced its remaining expirations to 7.5% of annualized base rent.

What is the leasing trend reported by HPP for Q4 2020?

HPP experienced an uptick in leasing activity, signing 143,000 square feet of new leases in Q4 2020.

How much below market are the in-place rents for HPP's leases?

The in-place rents for HPP's leases are approximately 20% below market.