Jaime Feldman

Jaime Feldman asked about the latest demand trends, risks, and growth opportunities in the tech markets of Northern California and Seattle, and inquired about the company's expectations for new and renewal lease rate blends for the year.

Answer

Angela Kleiman (President and CEO, Essex Property Trust) discussed Northern California's recovery driven by VC funding and office absorption, while noting Seattle's Q4 softness but strong long-term fundamentals due to reduced supply and return-to-office enforcement. She also stated that blended lease rate growth is expected to be similar to 2025 at 2.5%, with new leases flat to 2% and renewals at 3-4%.

Jaime Feldman asked about the latest thoughts on demand for Essex's assets, particularly in Northern California and Seattle, considering recent movements in the tech market, and what factors to watch for risks and growth.

Answer

Angela Kleiman (President and CEO) explained that Northern California is in a recovery phase, with stable job growth, high Q4 VC funding (up 91% quarter-over-quarter), and positive office absorption in San Francisco, San Jose, and Seattle. She acknowledged Seattle's Q4 softness due to layoffs but highlighted strong fundamentals for 2026, including a 30% reduction in supply, OpenAI's expansion, and Amazon/Microsoft's return-to-office enforcement, while noting the unpredictability of the employment landscape due to public policy.