Brent Smith
President and Chief Executive Officer
Replay available
Piedmont Office Realty Trust Inc (PDM) Q3 2025 Earnings Call
Piedmont Office Realty Trust Inc (NYSE: PDM) Q3 2025 earnings conference call, held 2025-10-28. Replay captured from the company's public earnings webcast.
Hosted by
Featured presenters
Chris Comey
Executive Vice President, Capital Markets & Investments
Nick Philman
Analyst, Baird
Anthony Pallone
Analyst, J.P. Morgan
Dylan Brzezinski
Analyst, Green Street
Michael Lewis
Analyst, Truist Securities
Investor webinar replay
Watch the replay and follow the connected company analysis, news, and investor updates for Piedmont Realty Trust, Inc..
Replay transcript excerpt
WEBVTT 00:00:00.031 -- 00:00:04.497 the upward trend in leasing volume signals that tenants still have a strong appetite 00:00:04.497 -- 00:00:06.400 for office space. 00:00:06.400 -- 00:00:11.888 With the supply pipeline contracting and prime availabilities becoming scarce, 00:00:11.888 -- 00:00:17.436 more demand continues to chase a rapidly reducing supply landscape. 00:00:17.436 -- 00:00:22.484 According to JLL, the cycle of footprint reductions is tapering off as 00:00:22.484 -- 00:00:27.824 today's users of over 25,000 square feet are cutting just 00:00:27.824 -- 00:00:31.850 2.2% of their footprint at renewal. 00:00:31.850 -- 00:00:37.678 Inventory for high-quality space, either new or renovated, is increasingly scarce, 00:00:37.678 -- 00:00:42.605 and office construction has been reduced by an additional 20% from the second quarter, 00:00:42.605 -- 00:00:47.251 with new supply not a factor in most of our markets. 00:00:47.251 -- 00:00:52.458 These market dynamics of limited high-quality supply and growing demand are allowing 00:00:52.458 -- 00:00:56.444 Piedmont to materially increase rental rates across its portfolio. 00:00:56.444 -- 00:01:01.711 And with asking rents still ranging from 25 to 40% below the rates required 00:01:01.711 -- 00:01:03.533 for new construction, 00:01:03.533 -- 00:01:08.720 we believe existing high quality office has a long, long runway 00:01:08.720 -- 00:01:11.421 for rental rate growth. 00:01:11.644 -- 00:01:16.850 Within the Piedmont portfolio, which comprises newly renovated, highly amenitized 00:01:16.850 -- 00:01:22.558 buildings paired with our hospitality driven service model, we are experiencing 00:01:22.558 -- 00:01:25.790 multiple tenants competing for full floor spaces. 00:01:25.790 -- 00:01:30.156 providing the backdrop...