Brandywine Realty Trust BDN is focusing on redevelopment efforts to fortify its office portfolio. Per an article, the company is reportedly enhancing the 150 Radnor Financial Center office campus and will incur capital expenditures worth $14 million.
The 350,000-square-foot office building located in Radnor will be upgraded with communal gathering spaces, a center with numerous glass-enclosed conference rooms and a new café. Further, the lobby and atrium will be redesigned.
This overhaul comes on the heels of other suburban office landlords spending significant amounts in property improvements to modernize these office spaces with various amenities, such as conference centers, dining options, dynamic work areas and outdoor gathering spaces.
Such efforts to refurbish office buildings enable landlords to execute lease deals at favorable terms. In addition, this redevelopment will likely improve tenant retention and productivity, as well as attract new tenants.
In fact, it offers opportunities to capture the prevailing high demand for office space that has shot up owing to recovery in the economy and job market. This is because as the economy revives, business grows and therefore, corporate sectors seek expansion, renting more space to accommodate the increased workforce. This is providing significant impetus to office landlords like Boston Properties, Inc. BXP, Cousins Properties Incorporated CUZ and Kilroy Realty Corporation KRC.
In a statement, the company said that the renovations aim to accomplish that at Radnor Financial “while also creating a stronger sense of community within the workplace”.
Notably, in 2005, it initiated a $25-million renovation at 555 Lancaster to overhaul the interior and exterior of the 238,000-square-foot building.
While these transformative measures will incrementally add value to the company’s properties, such efforts are capital intensive and may hurt short-term margins. Additionally, any hike in interest rate could curb its ability to finance these strategic projects.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kilroy Realty Corporation (KRC) : Free Stock Analysis Report
Cousins Properties Incorporated (CUZ) : Free Stock Analysis Report
Boston Properties, Inc. (BXP) : Free Stock Analysis Report
Brandywine Realty Trust (BDN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research