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An Introduction to Columbia Property Trust

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About Columbia Property Trust

Headquartered in Atlanta, Georgia, Columbia Property Trust (CXP) was founded in 2003. The company was earlier known as Wells Real Estate Investment Trust II. The company is structured as an REIT. It completed an initial public offering in 2013.

Prior to the listing, the company was a non-listed REIT that acquired many properties during the real estate boom and subsequently suffered huge losses, which led to the restructuring of its portfolio. After a lot of restructuring and strategy shifting, Columbia Property seems to be on track for future growth. The company carries an investment-grade rating from both Moody’s and Standard & Poor’s.

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A brief business overview

Columbia Property Trust’s core business is the ownership of high quality office properties. The company is primarily engaged in the ownership, development, acquisition, and management of real estate assets consisting primarily of Class A office properties. Columbia’s office properties are mainly concentrated in premier central business district locations.

Who are its competitors?

Columbia Property Trust is a mid-sized office REIT company with a market capitalization of $3 billion. The company competes with a number of other office REITs for rental properties. The competition also comes from other real estate companies, private real estate funds, financial institutions, and pension trusts, among others.

The competition for office leasing space is mainly driven by factors such as the quality of properties and services provided to tenants, the attractiveness of leasing terms, the location, and the reputation of the company.

Major competitors of Columbia Property Trust in the office REIT space include Boston Properties (BXP), Alexandria Real Estate Equities (ARE), SL Green Realty (SLG), Douglas Emmett (DEI), BioMed Realty Trust (BMR), Highwoods Properties (HIW), Paramount Group (PGRE), Equity Commonwealth (EQC), and Kilroy Realty (KRC).

The SPDR Dow Jones Wilshire Global Real Estate ETF (RWO) invests ~0.3% of its portfolio in Columbia Property Trust.

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