"There are very few people who would say that's what it's worth," Callahan said in his company's most recent earnings conference call. "We think we're trading at a discount."

Although it has not resulted in closings, Callahan said his company has been in the bidding for the office assets in core markets. "We've been very active on the acquisition front," Callahan said. "Unfortunately, there's very high pricing out there."

On the other hand, disposing of the 1.2-million-sf Hollywood and Highland retail and entertainment complex in Los Angeles for $201 million, as well as a 272,000-sf office building in Toronto for $59 million, reduces Trizec Properties' mortgage debt to $411 million. "We have a number of unencumbered assets for the first time in a long time," Callahan said.

Meanwhile, Trizec Properties, Inc. has put 73% of this year's lease expirations to bed, Callahan reported. New leases in the first quarter were written at an average term of 7.2 years, he added, up from an overall average of 5.5 years.

"More and more tenants are looking to renew early," said Callahan, adding much of the interest has come from small- and medium-sized tenants.