Piedmont Office Says Improved Economic Environment Fueling Tenant Base Growth

Don Miller, president and CEO of Piedmont Office Realty Trust (NYSE: PDM), participated in a video interview at Nareit’s REITworld: 2018 Annual Conference in San Francisco.

The third quarter was an active period for Piedmont on the leasing front. Miller noted that the REIT saw a tailwind from tax legislation and an improved economic environment that’s driving growth in the tenant base and spurring new activity in technology and co-working activity.

Miller also highlighted the potential Piedmont sees in its existing land holdings in terms of future development. “Given the low basis of the land, and given how early in the cycle we bought it, we think it gives us a competitive advantage,” he said.

Meanwhile, Piedmont has sold more than $750 million of assets since the start of 2017. Miller said the disposition process will continue, given that “our portfolio is constantly in a state of flux.” Going forward, dispositions will likely range from $300 million to $350 million, with proceeds being redeployed back into other assets, share repurchases, or debt repayment, he noted.