Office is where it's at as Baird names top 5 REIT picks

• The "real value" in real estate is in the office sector, says analyst David Rodgers, particularly in central business districts.
• "While development in Industrial as well as concentrated, potentially unsustainable land grabs in Data are risks, we simply anticipate better risk/return opportunities in Office."
• Top picks: Hudson Pacific Properties (HPP +1.2%); $38 PT, or 15% upside. Strength in a very tight Silicon Valley office market has the potential to drive additional leasing at the nine assets considered in "lease up" from the EOP portfolio.
• Kilroy Realty (KRC +1.5%); $78 PT, or 12% upside. "Our broker contacts confirm there is still solid leasing activity throughout the Bay Area."
• SL Green (SLG +1.1%); $131 PT, or 13% upside.
• Franklin Street Properties (FSP +0.8%); $15 PT, or 18% upside.
• One industrial name makes the list: Stag Industrial (STAG +1.9%); $26 PT, or 6.8% upside. The shares for some time have traded at a wide valuation discount to its peer set. The 5.7% dividend yield is among the highest in Baird's coverage.