Hudson Pacific Properties (HPP) BofA NY Global Real Estate Conference 2026 summary

Portfolio and Leasing Performance

• Portfolio includes 46 properties totaling nearly 14.5 million sq ft, with a balanced tenant mix across tech, AI, media, legal, government, retail, financial, and business services sectors.

• Leasing rates rebounded from a low of 75.1% to 82.5% year-over-year, targeting 85% by year-end and 90%+ by end of 2027, with four consecutive quarters of positive absorption and occupancy up 740 basis points.

• Record leasing activity in the last quarter with 1.3 million sq ft leased, including a major 891K sq ft lease with the City and County of San Francisco; pipeline remains strong at 2.4 million sq ft.

• Lease terms have lengthened to over 63 months, with stable concessions and rising mark-to-market rents.

• Office-to-residential re-entitlement filed for 901 Market, with expected approval by year-end, and amendments completed for other assets to allow mixed-use development.

Market Trends and Regional Insights

• Bay Area and Seattle show strong leasing momentum, with Seattle experiencing its first quarter of positive absorption in core markets.

• Los Angeles remains strong in select submarkets like Beverly Hills, Century City, and Brentwood, with record-high rents and near-full occupancy.

• Robotics and aerospace sectors are emerging as bright spots in L.A., particularly around El Segundo.

• No new significant office construction is expected, supporting higher valuations for best-in-class assets.

• Increased buyer demand for Bay Area office assets supports the disposition program.

Studio Business and Operational Improvements

• Studio platform is unique among public REITs, with the largest independent studio presence in L.A. and a fully leased New York studio.

• Studio business losses reduced from nearly $20 million to $4 million, targeting break-even by year-end through right-sizing and market focus; Core Studio NOI turned positive for the first time in two years.

• Hollywood stage leased rate at 95.5%, with significant sequential improvement at Sunset Pier 94; Sunset studio portfolio is 97% leased and New York studios are fully leased.

• Exploring new stage use cases, including micro-dramas and AI production, to capture growth segments.

• Federal and state tax incentives are expected to boost production activity, with a proposed federal bill offering up to 30% tax benefit and labor risks mitigated by new four-year industry contracts.