Q: Are you optimistic about 2014 in the Bay Area? Why?Д«P: The Bay Area is one of the most desired areas in the United States, tech capital of the world, with a booming economy, certainly one of the strongest from a commercial standpoint in the U.S. One of the things that have made Boston Properties so successful for so long is to stay focused on its core markets. As we see the prominence of energy and technology expand, will Boston Properties (nationally) expand its focus on those industries as well? (Seattle, Austin, Houston, etc.)Д«P: We have in the past, and continue to explore other markets, but have yet to find one with the right opportunity that makes sense for us. Q: Your national focus has been on traditional centers of economic activity. Does this include potentially bringing international partners to the region? Other parts of the country?Д«P: If the opportunity presented itself where it is advantageous for us, it is something we certainly would explore. Q: One of your organizationвЂ™s core strategies is to explore joint-venture opportunities. Assembling a large site for a commercial development is very difficult to do. The Bay Area is built out, so if you are building something you have to tear something down first. Q: What are the biggest challenges facing the commercial real estate industry in the Bay Area today?Д«P: Lack of land. In the Bay Area, all the metrics point to a growing local economy for the next several years. Just read his editorials from US News and World Report over the past few years for your answer.

Q: Given the anemic recovery across the country, is it conceivable that we may have the next recession hit our national economy before we actually get out of this one?Д«P: That would be a good question for Mort Zuckerman, our chairman and founder. We continue to look at development and acquisition opportunities all the time, but pricing is a little вЂњfrothyвЂќ right now. Does it still make sense to invest in the Bay Area?Д«P: We are focused on four core markets: New York Boston Washington, DC and San Francisco, and I think it is safe to say that these are the highest profile markets in the United States. Q: As someone who has visibility to markets across the United States, how are we comparing to those others? Yields are shrinking and prices are going up. While it is true we sold an asset in downtown San Jose, we also bought out our partnersвЂ™ interest in our Mountain View Research and Tech Parks in this past year-an additional investment in the Valley in excess of $100 million. Was this just an opportunistic coincidence, or is the organization truly placing more focus on San Francisco?Д«P: Purely coincidence. Q: We wrote earlier this year that Boston Properties was busy working on its developments in San Francisco while at the same time shedding some assets in Silicon Valley. Boston Properties will own 95 percent of the 61-story Transbay Tower planned for the site, slated to be the tallest building on the West Coast. One of the newest additions is a parcel next to San FranciscoвЂ™s new Transbay Terminal. Boston PropertiesвЂ™ Bay Area portfolio includes Embarcadero Center in San Francisco, Mountain View Research Park and Mountain View Technology Park. HeвЂ™s been with Boston Properties since 1998, when was appointed to his current position. He led the acquisitions and development program. In 1994 he became chief investment officer for Bedford Property Investors, an East Bay real estate investment trust. He worked his way up to vice president before becoming president of Bedford Property Development, a private West Coast development concern that held more than $2 billion in real estate. Pester launched his real estate career as a commercial broker with Cushman & Wakefield when he was fresh out of UC Santa Barbara. As senior vice president and manager of Boston PropertiesвЂ™ Northern California region, he oversees all company activity on the West Coast. THIS ARTICLE WAS PUBLISHED IN THE вЂQвЂ™ вЂ“ THE REGISTRYвЂ™S PRINT PUBLICATIONВ вЂ“ IN JANUARY 2014Д«ob Pester has been involved in Bay Area real estate for more than 30 years. Boston Properties sees nothing to dislike about the Bay Area.

Bob pester