Zuckerman says low interest rates are the market’s lone source of opportunity: VIDEO

New York /
Aug.August 15, 2012 03:00 PM

If there’s opportunity in the current real estate market it’s all manufactured by the Federal Reserve, Boston Properties Chairman Mort Zuckerman said in an appearance yesterday on Bloomberg Television’s “Street Smart” (see video above).

Zuckerman, who regularly touts his companies focus on “A buildings in A locations,” said his portfolio is not being bouyed by growing rents, rather by the low interest rates. Zuckerman said the board at his company was able to secure $1 billion at a 3.85 percent interest rate over more than 10 years.

“I’ve never seen those kinds of interest rates in my career,” Zuckerman said. He attributed Boston Properties’ recent strong earning reports not to higher rents, better occupancy or a generally improving market, and instead credited the low interest rates available.

Meanwhile, the company has shifted much more of its focus to buying assets rather than developing them. “We’re doing a much less intensive development program because that’s more dependent on a stronger market,” the developer said. — Adam Fusfeld


Related Articles

arrow_forward_ios
Investment Sales, Federal Reserve, Interest Rates, Real Estate Finance, Jay Powell
What the Fed’s latest rate hike means for commercial real estate
What the Fed’s latest rate hike means for commercial real estate
Boston Properties' Owen Thomas (Boston Properties, Getty)
The commercial real estate recession is here: Boston Properties
The commercial real estate recession is here: Boston Properties
New York Community Bank CEO Thomas Cangemi
NYCB slashes 10% of staff as resi mortgages slump
NYCB slashes 10% of staff as resi mortgages slump
Seth Weissman, Financing
Urban Standard wants to rescue property owners from high interest rates
Urban Standard wants to rescue property owners from high interest rates
cliffside, building, money
$16B in CMBS loans nearing cliff in NYC
$16B in CMBS loans nearing cliff in NYC
Boston Properties' Owen Thomas and SL Green's Marc Holliday (Boston Properties, SL Green, Getty)
Office developers widen their sights as sector’s uncertainty persists
Office developers widen their sights as sector’s uncertainty persists
From left: Avalon Bay Communities' Timothy Naughton and Equity Residential's Mark Parrell (Getty, NMHC, Avalon Bay Communities)
REITs post worst year since 2008. Have they hit bottom?
REITs post worst year since 2008. Have they hit bottom?
How commercial real estate players use interest rate swaps and caps
How commercial real estate players use interest rate swaps and caps
How commercial real estate players use interest rate swaps and caps
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...