Jim Heistand, president and CEO of Parkway Properties, Inc. (NYSE: PKY), joined REIT.com for a CEO Spotlight video interview at REITWorld 2015: NAREIT’s Annual Convention for All Things REIT at the Wynn Las Vegas.
Parkway Properties owns and operates office properties located in higher-growth submarkets in the Sun Belt region of the United States.
Heistand said he expects the company to continue to be a net seller of assets in 2016, although not at the same robust pace as in 2015. Going forward, the company might recycle assets that generate outsized returns over a short period of time, Heistand added.
Heistand also commented on Parkway submarkets that are expected to outperform. The company has just built a new asset in Tempe, Arizona, and will consider additional opportunities in that market, Heistand said. In addition, the central business district (CBD) of Austin, Texas, has seen a “tremendous” rise in rents, and Parkway would consider expanding in this market as well, according to Heistand. Parkway sees opportunities in the Buckhead area of Atlanta and the CBD of Charlotte, Heistand said.
Meanwhile, Heistand reflected on the impact of mobile technology on demand for office space. He acknowledged that the advent of technology has generally reduced the need for physical space. One way Parkway has adapted to these changes has been to partner with Google Fiber to install high-speed Internet connections. Connection speeds in Parkway buildings are 100 times faster than average connection times, Heistand said.
The company has also created common workspaces that appeal to a younger, technology-focused workforce, he said