Brent Smith, president and CEO of Piedmont Office Realty Trust, Inc. (NYSE: PDM), sat down for a video interview during Nareit’s REITworld: 2024 Annual Conference in Las Vegas on Nov. 18-21.
Smith outlined his company’s 2025 growth strategy, emphasizing leasing momentum, capital deployment, and service enhancements.
On leasing, Smith highlighted Piedmont’s success in securing tenants, leasing 60% of its 16 million square feet since the pandemic, boosting its occupancy rate to 88.8%. He credited the “flight to quality” trend, with tenants seeking high-quality office spaces.
“Despite all that availability, you're seeing a dearth of product in the type of buildings that tenants want to be in,” Smith noted.
He also emphasized capital deployment as a critical growth area. He pointed to opportunities arising from distress in private markets and Piedmont’s access to public market capital at a competitive rate.
Looking ahead, Smith discussed Piedmont’s “placemaking” initiative aimed at enhancing tenant experiences through flexible, collaborative workspaces and superior service.
“The office is really about creativity, collaboration, culture building, and communication,” he explained. The goal is to increase tenant retention from 70% to 80% by creating environments that tenants value long-term, Smith added.
Challenges remain, including public misconceptions about office market health, particularly lower-tier office stock vacancies. However, Smith expressed confidence that premium office spaces would continue attracting demand from businesses seeking quality environments for their employees.