Hudson Pacific Properties Inc. (HPP) shares plunge 6.54% in pre-market trading amid sector-wide selloff and rising borrowing costs

Hudson Pacific Properties Inc. (HPP) saw its shares plunge 6.5395% in pre-market trading on December 19, 2025, marking a sharp reversal in investor sentiment ahead of the regular session. The decline, one of the largest pre-market drops for the real estate investment trust in recent months, signaled heightened caution among traders amid broader market volatility.

While no immediate corporate announcements or earnings reports were cited as catalysts, analysts noted the move aligned with a broader selloff in real estate equities. Sector-wide pressures, including rising borrowing costs and concerns over commercial property valuations, have weighed on investor confidence in recent weeks. Hudson Pacific’s exposure to high-cost urban markets may have amplified its vulnerability to shifting capital flows.

The stock’s pre-market performance underscored persistent uncertainty in the REIT space, where liquidity constraints and refinancing risks remain key themes. Traders appeared to price in potential headwinds for the company’s asset-heavy business model, particularly as interest rate expectations continue to evolve. Hudson Pacific’s sharp decline added to a pattern of erratic price action seen across the sector, reflecting a tug-of-war between long-term growth potential and near-term financial pressures.