Matt Kelly, CEO of JBG SMITH (NYSE: JBGS), participated in a video interview in conjunction with Nareit’s REITworld: 2021 Annual Conference.
Kelly discussed National Landing, Amazon’s second headquarters in northern Virginia, where JBG SMITH is focused on cultivating an amenity-rich, walkable neighborhood. He said that “placemaking” is at the heart of how the REIT creates long-term value and income growth.
“By making places more attractive to our customers, they pay higher rents, they come in greater numbers, and hopefully they stay longer,” Kelly said.
Kelly also said that the work JBG SMITH is doing with smart cities is rooted in sustainability while also giving their customers what they need, like high-speed connectivity.
Turning to what’s ahead for REITs in 2022, Kelly said that all over the world, companies and people are “reshuffling” their locations as a result of the pandemic.
“It has a lot to do not just with office space, but also housing,” Kelly said. “What is the value of all of that? How much are people willing to pay to have certain amenities and certain access? The tight labor market is only exacerbating a lot of those things.”