Boston Properties Inc. (BXP), which develops, owns, and manages Class A office properties in the US, has entered into a 10-year lease agreement with Roku Inc.
The lease is for 72,000 square feet in Boston Properties’ 1.2 million square foot office campus in Santa Monica, California.
Boston Properties’ Senior Vice President, Los Angeles Region, Jonathan Lange, said, “Roku’s commitment demonstrates the ongoing demand for premium, well-designed Class A office environments for today’s leading technology and entertainment companies.”
Kevin Kearns, Director, Global Real Estate, Roku (ROKU), added, “We are very excited to begin our next chapter in Colorado Center. Our space will provide an ideal location for our team to connect, collaborate, and innovate, and we are thrilled to partner with Boston Properties to bring the space to life.” (See Boston Properties stock analysis on TipRanks)
Boston Properties’ Colorado Center campus occupies 15 acres and is located in Santa Monica’s Media and Entertainment District.
On April 19, Deutsche Bank analyst Derek Johnson reiterated a Hold rating on the stock and raised the price target to $107 from $103.
Johnson believes the current norm of work from home and “hub and spoke” options will continue long-term and result in decreased demand for office space.
Overall, consensus among analysts is that Boston Properties is a Hold, based on 1 Buy and 7 Holds. The average analyst price target of $107.13 implies the stock is fairly priced at current levels. Shares have gained about 18.8% over the past year.