X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

OAK BROOK, IL-Great Lakes REIT expects its Midwest US suburban office occupancy rate to slip to 85% in 2002, down from its current 88.1% rate. As a result, funds from operations should remain fall compared to this year, company officials warn.

After posting funds from operations of $2.15 per share in 2000, the REIT recently said FFO this year should be between $2.23 and $2.25 per share.

“We anticipate FFO growth will be flat in 2002 because of the economic slowdown and a lower occupancy rate,” says Chairman and CEO Richard May. “However, we expect rent increases to offset much of the impact of occupancy declines and are comfortable with FFO estimates in a $2.18 to $2.22 per share range.”

Great Lakes has leases on 1.2 million sf – nearly 25% of its portfolio — expiring in 2002. Renewals have taken 274,000 sf off the market, and the company expects to renew another 490,000 sf. That leaves 482,000 sf. However, the REIT expects net rent increases of 10% because most of the expiring leases are at below-market rates.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.