Corporate Office Properties Trust (OFC), a Maryland-based real estate investment trust (REIT), recently inked a deal with an unrevealed tenant to lease total space at 7205 Riverwood Road property, located in Columbia, Maryland. The leased space of 115,000 square feet is expected to be occupied by early 2014.
7205 Riverwood Road includes the 86,000 square feet leased building and an adjacent property which is a part of Rivers Corporate Park. The leased property is currently under construction. Rivers Corporate Park is a Howard County, Maryland-based business community which spans around 8.7 million square feet. The area is strategically located in close proximity to the major facilities and transportation network of the region.
Corporate Office primarily focuses on strong leasing activity and high tenant retention. This new lease agreement is a part of the expansion of collaboration with the company's existing well-known clientele. Corporate Office has a cluster of well-known tenants such as - Northrop Grumman Corporation (NOC), Booz Allen Hamilton Holding Corporation (BAH) and The Boeing Company (BA). In addition, the company aims to increase the annual revenue generated by world-class tenants from 60% at the end of 2011 to around 65% by end of 2013.
Till date, including the new agreement, the company has signed new lease agreements, spanning 162,000 square feet related to properties under construction. Including the latest leasing agreement, leased spaces under development increased to 41%.
Corporate Office owns, develops, manages and has ownership interests in suburban office portfolios mainly located in Maryland, Virginia, Colorado, Texas, Alabama, and other vibrant markets across the U.S. The company mainly focuses on serving U.S. Government and Defense Information Technology sectors and Data Centers. As of June 30, 2012, Corporate Office's portfolio comprised of 228 office properties spreading to 19.8 million square feet.
We maintain our Neutral recommendation on Corporate Office. Also, the company carries a Zacks #3 Rank (short-term Hold rating).