Hudson Pacific Properties Achieves Steady Progress and Raises Full-Year Outlook Amid Thriving Tech Industry
Hudson Pacific Properties, a leading real estate investment trust, has announced another quarter of steady progress in its Q3 2026 earnings call. The company has reported an 8% growth in same-store cash NOI and a core FFO per share year over year.
In the third quarter, Hudson Pacific signed 534,000 sq ft of new and renewal office leases, with its in-service office occupancy growing for the fifth consecutive quarter to approach 86%. The company has also continued to execute on its disposition plan, strengthening its balance sheet. Pro forma for its fourth-quarter asset sales and senior notes repurchase, total liquidity stands at $840 million.
The CEO, Victor Coleman, highlighted the thriving tech industry as a key driver of demand in Hudson Pacific's West Coast markets. He noted that U.S. venture-backed companies raised $98.4 billion in the third quarter, with over 70% of it deployed in the company's West Coast markets. AI remains the primary driver, accounting for 20 U.S. rounds of $1 billion or more in the quarter.
Despite recent volatility in tech stocks, Hudson Pacific has not seen a significant impact on its pipeline or tour activity. The CEO expressed confidence that the company will continue to benefit from the thriving tech industry, citing indicators such as record acquisition exit values recycling capital back into the ecosystem.
The data also suggests that the office recovery is broadening across the West Coast, with virtually no new supply coming online. San Francisco posted its eighth consecutive quarter of positive net absorption, adding 1.3 million square feet, while Silicon Valley delivered its strongest leasing quarter since 2019 at 4.1 million square feet.
The company's pipeline stands at 2.1 million square feet, with 1.1 million square feet now in advanced stages, nearly twice the level of a year ago. This positions Hudson Pacific to extend its earnings growth into 2027. The CEO also highlighted the company's commitment to executing on its disposition plan and strengthening its balance sheet.
With its balance sheet strengthened, total liquidity at $840 million, and the pipeline in place, Hudson Pacific is well-positioned for future growth. The company's continued success will be closely watched by investors, given the strong indicators of a thriving tech industry and a broadening office recovery across the West Coast.
