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CHICAGO-Equity Office Properties Trust may put more assets on the table to help feed a voracious investor appetite for class A office properties. The largest US office REIT already has $1.2 billion worth of properties on the market now, but the company may add to that as investors remain aggressive despite rising interest rates.
"There's still very significant demand for office properties in virtually all of our markets," says president and chief executive officer Richard D. Kincaid during his company's earnings conference call Tuesday. "It's just too attractive to ignore, so we're evaluating our entire portfolio to put more assets into this market now. We're constantly looking at our portfolio with an eye on what people would pay in the market and what we would pay for it."
Equity Office Properties Trust is a net seller this year at an accelerating pace, as it disposed of 914,281 sf in April for nearly $160 million after first-quarter sales of 783,629 sf for $117 million. Meanwhile, Equity Office Properties has acquired 374,763 sf for $99.8 million, the majority of that for the 262,991-sf Pointe O'Hare property in northwest suburban Rosemont. "We're still looking to find acquisitions, but it's difficult," Kincaid says.
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