Vornado (VNO) Considers Disposition of Skyline Office Center
Per a news by bizjournals.com, New York-based real estate investment trust (“REIT”), Vornado Realty Trust VNO is mulling over disposing the Skyline office center, located in Baileys Crossroads. Low vacancy rates in the 2.6 million-square-foot office center and the idleness in the office leasing market in Northern Virginia might have prompted Vornado to consider such a move.
Skyline, which was only half-vacant as of Dec 31, 2015, is part of Vornado’s 16.6 million-square-foot Washington D.C. portfolio. Steven Roth, the CEO of Vornado opined that the company is contemplating breaking up the Washington D.C. office market to create a smaller business unit.
Notably, tenants of Skyline include a number of government agencies including the Washington D.C.-based Fish & Wildlife Service and the McLean, VA-based Booz Allen Hamilton Holding Corporation BAH. Per the news, the Skyline center is witnessing a decline in federal spending in the recent times.
In the Apr 8, 2016 annual letter to the shareholders, filed with the Securities and Exchange Commission, Vornado, however did not say anything about how the company is going to dispose the property and to whom.
Vornado is the owner and manager of commercial real estate in the United States, with a portfolio of properties mainly in New York City and Washington D.C. areas.
Both Vornado and Booz Allen Hamilton currently carry a Zacks Rank #3 (Hold).
Investors interested in the REIT industry may consider better-ranked stocks like DCT Industrial Trust Inc. DCT, and Douglas Emmett Inc DEI. Each of these stocks holds a Zacks Rank #2 (Buy).
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