Boston Properties, the owner of Reston Town Center, has taken a hit in earnings since the COVID-19 pandemic impacted the regional economy.
According to a quarterly earnings statement, the real estate owner’s funds from operations were down by 14 percent in the second quarter this year when compared to this time last year. The company earned $236.9 million for the first three months ending on June 30.
Boston Properties CEO Owen Thomas attributed the earnings drop to layoffs, rent concessions with struggling tenants, and dips in parking fees from office tenants that are now working remotely.
Still, the company reported some big wins. Earlier this year and in the thick of the pandemic, Microsoft signed a 400,000-square-foot-lease in Reston Town Center.
It’s unclear how the pandemic will pan out for the company. Rent collections remain high, with collections of 94 percent of rents overall, Thomas said.
“I’m particularly proud of our team’s commitment to serving our customers with the highest level of professionalism that is our standard at Boston Properties,” he said.
He also noted that greater acceptance of part-time work from home may act as a headwind to office demand growth.
“So longterm, we think the product is here to stay. And the question is, who is going to be providing that and who is going to get through this pandemic most successfully?”
Photo by Jay Westcott
Fairfax’s Edge in Flagging Office Market — Microsoft’s 400,000-square-foot-deal at Reston Town Center was one fo the biggest leasing wins for this region this year. But county business leaders see more deals coming, despite a slowdown created by the coronavirus pandemic. [Bisnow]
Reservations for Ridge Heights Pool Open Tomorrow — Reston Association is now offering members and non-members a chance to reserve a spot at the pool. The updated pool schedule is also available online. [Reston Association]
Herndon-based Company Offers Virtual Learning for Students — “Herndon-based online education provider K12 Inc. announced Wednesday it plans to hire more than 1,300 educators for the 2020 through 2021 school year, in light of a massive push to move education online during the pandemic. Across Virginia, schools have been making decisions regarding reopening in the fall, with some already opting for full online learning.” [Virginia Business Monthly]
Photo via Marjorie Copson
Walmart Labs is expanding its presence in the Reston area. The announcement comes as a growing number of technologies — including Microsoft — expand their footprint in the community.
The company’s technology arm has signed to lease establish a new technology center at 2245 Monroe Street, according to the Washington Business Journal.
WBJ also reports that the company will take up roughly 162,300 square-feet of a building owned by an affiliate of Barings Real Estate.
The building, which is located near the Herndon Metro Station, was recently renovated. The company already leases spaces at 10780 Parkridge in Reston.
The move would bring more than 100 jobs to Reston.
Photo courtesy Transwestern
Herndon Police Department Releases ‘Where We Stand’ Guide — The police department offers a look at its use of force policy. “Trust and respect come through a solid foundation build on professionalism, strong policies, and continuous community engagement,” HPD wrote. [Herndon Police Department]
Facial Recognition Tech Pitched at Microsoft Office — Microsoft tried to sell its facial recognition technology to the Drug Enforcement Administration, according to newly released emails. The company privately hosted DEA agents at its Reston office. [Tech Crunch]
Chicago Company Acquires Reston-based PagnatoKarp — “Reston-based wealth management firm PagnatoKarp has been acquired by Chicago-based Cresset Asset Management, the companies announced Wednesday. A transaction amount was not disclosed. [Virginia Business]
State Not Ready for Phase Three — “Virginia Gov. Ralph Northam said Tuesday that statewide Covid-19 numbers ‘continue to look favorable,’ but that he will not move the commonwealth into phase 3 of reopening this week. ‘I want to have more time to see how the numbers look before we make changes, especially as we see surges in other parts of our country,’ Northam said.” [Washington Business Journal]
Photo by Marjorie Copson