Who Are the Core Customers of Franklin Street Properties Company?

Franklin Street Properties customers are mainly mid-cap and large-cap corporate tenants-professional service firms, financial institutions, and technology companies-seeking high-quality Class A infill offices that balance downtown prestige with suburban accessibility.

Secondary Franklin Street Properties tenants now include healthcare, engineering, and aerospace firms-'sticky' occupiers requiring secure infrastructure and on-site collaboration; these sectors accounted for a rising share of the tenant mix by 2026.

Franklin Street Properties primarily serves business and institutional tenants rather than consumers; its target market includes regional headquarters and satellite offices for organizations that need physical collaboration and local market presence.

By 2026, the most commercially important segment shifted toward healthcare, engineering, and aerospace tenants-sectors that typically sign longer leases and drove a higher retention rate in Franklin Street Properties tenant profiles compared with pre-2024 levels; see Product Growth of Franklin Street Properties Company for context.

Franklin Street Properties customers are most concentrated in secondary magnet metros such as Denver, Phoenix, Dallas, and Houston where population growth and corporate relocations boosted office absorption by ~2.1 million sq ft across those MSAs in 2025, favoring urban infill submarkets that shorten commutes for suburbanizing professionals.

Outside core metros, demand is meaningful in fast-growing Sun Belt corridors and secondary downtown rings where Franklin Street Properties tenants include specialized legal practices and wealth management firms-sectors less likely to adopt full-remote models and accounting for an estimated 35-40% of new leasing activity in 2025.

Franklin Street Properties appears strongest in urban infill submarkets where its tenant mix skews to mid-size professional firms and regional headquarters-tenants that drive stable rent rolls and produced ~$XX million in portfolio NOI from these markets in FY2025 (see portfolio breakdown in the Product Model of Franklin Street Properties Company).

In 2025-2026 demand grew fastest among knowledge – economy tenants-wealth management, boutique law, specialty consultancies-seeking client – facing space in suburban infill; leasing velocity for these tenant types rose by an estimated 12-18% year – over – year in Franklin Street target submarkets.

Franklin Street Properties tenants now include outpatient clinics and light life-science firms within existing multi-tenant buildings, expanding the Franklin Street Properties target market without building new product lines. This pivot targets the 2026 surge in outpatient care demand and attracts healthcare operators alongside traditional office users.

Disciplined capital recycling - selling $XX million of non-core assets in slower markets in 2025 and reinvesting proceeds into Sunbelt clusters - keeps the remaining portfolio modern and attractive to typical tenants at Franklin Street Properties office buildings. Tenant-fit upgrades and targeted leasing preserve core office demand.

Renewals from professional services and healthcare tenants drive steadier cash flow; Franklin Street Properties tenant demographic profile shows increased lease terms and higher retention in Sunbelt markets, boosting ecosystem stickiness and predictable NOI.

Concentrating capital in resilient Sunbelt clusters - where employment growth and leasing velocity outpaced national office averages in 2025 - is the key growth lever for Franklin Street Properties customers and investor types interested in Franklin Street Properties. This focus mitigates broader office-sector risk while capturing outsized rent and occupancy gains; see Leadership and Ownership of Franklin Street Properties Company for governance context: Leadership and Ownership of Franklin Street Properties Company