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Reuters: JBG Smith shares rise after Amazon.com nixes NY HQ

According to Reuters:

Shares in JBG Smith Properties rose 1.5 percent on Thursday, outperforming the office real estate sector, as some investors bet that it could win new business after Amazon.com Inc said it scrapped plans to build a headquarters in New York.

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“It seems to be somewhat justified by the Amazon New York news. The share price reaction reflects shareholder optimism that you could have marginal increase in Amazon’s need for space in National Landings,” said Daniel Ismail, analyst at Green Street Advisors in Newport Beach, California.

But Ismail said the optimism was cautious “particularly in light of Amazon’s comments that they’d also be growing in other geographic regions across the U.S. and Canada.”

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“The benefits to the NY office REITs was fairly minor to begin with. The impact was more on the marginal benefit or negative for Manhattan office fundamentals,” said Ismail.

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