SLG - Should You Retain Cousins Properties Stock for Now? | Benzinga
Cousins Properties' (NYSE: CUZ) portfolio of class A office assets, concentrated in the high-growth markets in the Sun Belt region, positions it well to ride the growth curve amid the improving demand for premium office assets. Its capital-recycling efforts and a healthy balance sheet bode well. However, high supply in the office real estate market is fueling competition and affecting pricing power. High interest rates add to its concerns.
What's Aiding CUZ?
Cousins Properties' unmatched portfolio of Class A office assets in the high-growth Sun Belt markets is poised to benefit as the region is experiencing a population influx. Amid favorable migration trends and a pro-business environment, corporate relocations and expansions in the Sun Belt markets have gained pace, and this is driving the demand for office space.
Properties in these markets are also expected to command higher rents compared with the broader market. Per the company's May 2024 Investor Presentation, it witnessed a 39% increase in in-place gross rents from the first quarter of 2017 to the first quarter of 2024. The company also has a well-diversified, high-end tenant roster.
Cousins Properties is seeing a recovery in demand for its high-quality, well-placed office properties, as highlighted by a rebound in the new leasing volume. For the first quarter of 2024, the company executed 37 leases for a total of 403,604 square feet of office space with a weighted average lease term of ...