U.S. equity real estate investment trusts have little direct exposure to Silicon Valley Bank, the second-largest bank failure in U.S. history, according to analysis by S&P Global Market Intelligence.

Office REIT Cousins Properties Inc. reported Silicon Valley Bank as its ninth-largest tenant by annualized rent as of 2022 year-end at just over $8.4 million, or roughly 1.2% of the REIT's total rental portfolio. The office REIT leases 204,751 square feet of office space to the bank at its Hayden Ferry property in Tempe, Ariz.

Meanwhile, Boston Properties Inc. houses Silicon Valley Bank's Seattle office in its recently acquired Madison Centre property. Boston Properties purchased Madison Centre in May 2022 for a net purchase price, including transaction costs, of approximately $724.3 million. Total rentable square footage at the property is 754,988 square feet, although the amount of that leased to Silicon Valley Bank is not reported.

In addition to the above office leases with Silicon Valley Bank, Paramount Group Inc. leases office space to SVB Securities LLC, another entity under the SVB Financial Group umbrella, at 1301 Avenue of the Americas in Manhattan, N.Y.

Alexandria Real Estate Equities Inc. said in a March 13 news release that it has one lease with an affiliate of Silicon Valley Bank in the Greater Boston market totaling 32,152 rentable square feet. The lease's annual rental revenue as of Dec. 31, 2022, was $1.7 million, or 0.08% of the REIT's total annual rental revenue.

While Alexandria Real Estate does not have any bank accounts, loans or investments with Silicon Valley Bank, it warned that some tenants may have banking relationships or other business relationships with Silicon Valley Bank. The REIT also requires some of its leases to provide security deposits to cover certain lease obligations, with a portion of those taking the form of letters of credit. Letters of credit issued by Silicon Valley Bank and its affiliates aggregated to $108.3 million as of March 10, and Alexandria Real Estate is working with such tenants to replace their letters of credit with another acceptable security deposit.

Hudson Pacific Properties Inc. noted a similar situation in a recent news release. The office-focused REIT has no leases, loans or bank accounts with Silicon Valley Bank, but 11 of the REIT's 900 unique tenants have letters of credit issued by Silicon Valley Bank or its affiliates. The leases with these 11 tenants represent approximately 2% of Hudson Pacific's in-service office square footage, and the REIT is working with such tenants to replace these letters of credit.