T. Wilson Eglin, president and CEO of Lexington Realty Trust (NYSE: LXP), participated in a video interview at Nareit’s REITweek: 2018 Investor Conference in New York.
Lexington Realty Trust makes equity investments in single-tenant, net-leased commercial properties across the United States. The REIT has been working to reduce its suburban office exposure and focus on single-tenant industrial assets. About 50 percent of revenue now comes from industrial assets.
“This year, given renewed investor interest in office buildings, we think we’ll be able to accelerate that transition even faster,” Eglin said. He noted that the disposition market for suburban office assets has been “very good.”
Meanwhile, Eglin noted that build-to-suit development is an important component of the company’s growth strategy. At the same time, Lexington Realty is purchasing newly-constructed, big box distribution facilities. These assets offer strong tenant credit quality and somewhat higher yield because of their secondary market focus, he noted.