Boston Properties in Best Part of Weak Market: CEO
Boston Properties is "in the best part" of a weak commercial real estate market thanks to owning buildings in some of the nation's hottest areas, CEO Mort Zuckerman said Wednesday on CNBC's Fast Money.
Real estate is "a modest market, growing reasonably but it's not a strong market. We are in the best part of the market," he said.
For instance, San Francisco and its suburbs are hot because of "the entire explosion of the social networks," he said. Boston Properties owns the Embarcadero Center in San Francisco "and whatever vacancies we had are virtually gone. That is not true everywhere."
Because his real estate company owns what's known as "A" properties, people "want to go into the best buildings" as commercial rents have gone down, "so we have very high occupancy rates and that’s what’s really helped distinguish ourselves from the rest of the industry," Zuckerman said.
However, real estate is "reflective of the general economy and the general economy is weak," as Wednesday's ADP job numbers show.
"We have the most stimulative monetary policy in the history of this country and here we are three years into the recession and it’s not ended," said Zuckerman. "We may be heading into an even weaker economy this year than people expected. I just don’t see where the boost is going to come from."
Zuckerman also owns the New York Daily News newspaper, whose current editor, Colin Myler, used to be editor of News Corp's News of the World, closed down as a result of the UK phone-hacking scandal.
Myler was named in the Parliamentary report out this week that blasted News Corp Chairman Rupert Murdoch as "unfit," but Zuckerman strongly defended his editor as a "man of integrity. I am completely comfortable with him running the Daily News," which competes against Murdoch's New York Post newspaper.
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CNBC.com with wires.