CRE42 Commercial Real Estate Investment Strategy
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CRE42 Office REIT Composite

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Companion Excel Workbook: Office REIT Metrics

Selected Office REITs

The CRE42 office composite blends three public office REITs chosen to span the two poles of the US office market. BXP (BXP, Inc.) is the largest publicly traded owner and developer of gateway-market CBD office, concentrated in Boston, New York, Washington DC, San Francisco, Seattle, and Los Angeles. Cousins Properties (CUZ) owns Sun Belt trophy office concentrated in Atlanta, Austin, Charlotte, Tampa, Phoenix, Dallas, and Nashville. Highwoods Properties (HIW) owns "best business district" office across Raleigh, Nashville, Atlanta, Charlotte, Tampa, Richmond, Orlando, and Dallas. One gateway landlord plus two Sun Belt landlords give the composite exposure to both halves of the post-2020 office divergence.

Scale is lopsided: at year-end 2025, stabilized TEV was $26.4B for BXP against $7.4B for CUZ and $5.9B for HIW; BXP alone is roughly two-thirds of the combined figure.
Weighting: per the project decision recorded in the companion workbook, the office composite is STABILIZED-TEV-WEIGHTED: each REIT enters in proportion to its stabilized TEV for that fiscal year. BXP carries roughly two-thirds of the weight throughout the decade; the tilt is deliberate and reflects actual public-market scale.
By 2025 the three components priced differently: stabilized implied cap rates of 7.5% (BXP), 9.1% (CUZ), and 9.3% (HIW). The chart below shows the three tracked closely through 2021 and diverged during the 2022–2025 repricing; the TEV-weighted composite tracks BXP most closely, by construction.
Basis differences: BXP and CUZ figures are at each company's economic share of joint ventures; HIW publishes consolidated figures only (its unconsolidated JV share runs roughly 2–4% of NOI). FFO definitions also differ across the three. The workbook's mapping notes document each difference.

Component Pricing and Scale

Stabilized implied cap rate by component REIT (BXP, CUZ, HIW) and TEV-weighted composite, 2016-2025

Source: Component FY2016–FY2025 Form 10-K and Q4 supplemental filings; CRE42-derived measures per the companion workbook.

Stabilized TEV by component REIT, 2016-2025, in billions of dollars

Source: Component FY2016–FY2025 Form 10-K and Q4 supplemental filings; CRE42-derived measures per the companion workbook.

Composite Construction

Every company-sourced figure (NOI, interest, land, development, debt, FFO, leasing costs, cash flow, distributions) is a TEV-weighted average across the three REITs, weighted by each REIT's stabilized TEV for that fiscal year. Calculation columns keep the identical formulas used on the single-company tabs, so the composite reads like a single large office REIT. The composite share price is composite market cap divided by composite share count, never a direct average of the three prices. Preferred stock (BXP's Series B through 2020, HIW's Series A throughout) is treated as debt at liquidation value. All figures are aggregate composite, not per share.

Notes

The composite is a synthetic construction; it is not a filing of any single company. Component figures trace to each company's Form 10-K and Q4 supplemental for each fiscal year, per the Sources tab of the companion workbook. A regional footprint cross-section (portfolio square footage by region and market) requires a separate property-table extraction and is not yet built for the office components.

Companion workbook. office-reit-metrics.xlsx – CRE42 office REIT composite annual model (FY2016–FY2025), per-REIT and vs-market tabs, and market comparison data.

Related Topics

US Office REIT Metrics: 2016–2025 – Cluster overview and sub-pages

Office REIT Metrics & Current Cycle – The 10-year cycle through the composite's valuation metrics