Operating expenses, which rose 18% to $119.98 million in 2004, compared with $101.44 million the previous year, are partially responsible for the lowered earnings despite revenue increases. As of Dec. 31, occupancy in the company's 11.7-million-sf portfolio rose just 2% to reach 84%, compared with 82% occupancy at the end of 2003. At year-end 2004, leasing of the same store portfolio was 86%, essentially unchanged from the previous year.
Average gross rental rate for new leases and renewals, excluding first-generation space in CRT's portfolio at the end of fourth-quarter 2004, was $18.50 per sf, compared to $17.67 per sf for the same quarter a year ago. During the quarter it executed leases for 1.2 million sf, which resulted in 54,000 sf of positive absorption. Most of the leasing activity occurred at properties in Florida, Texas, Atlanta and Charlotte NC, while virtually all of the positive absorption occurred at properties in Houston and Orlando.
The largest leasing transaction by far was a 15-year, non-cancelable 568,000-sf master lease with the State of Florida in Tallahassee. This was followed in size by CitiFinancial's renewal of 160,000 sf in Jacksonville.
During fourth quarter, CRT continued to pursue a strategy Thomas Crocker, CEO, described as acquiring "in-fill properties in supply-constrained markets." It paid $138 million for the two-building, 470,000-sf Las Olas Centre in Downtown Fort Lauderdale, which, at $294 per sf, is the highest price ever paid in that market. The company also took a 75% interest in 437,000-sf Signature Place in Dallas for a price GlobeSt.com estimated at $80 per sf.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.