Parkway Properties Announces Leasing Activity

JACKSON, Miss., Dec. 11 /PRNewswire-FirstCall/ -- Parkway Properties, Inc. announced today leasing activity for the month ended November 30, 2006.

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As of December 1, 2006, occupancy of the office portfolio was 91.7%, up from 91.3% as of November 1, 2006. Since September 30, 2006, 67 leases were renewed or expanded for approximately 410,000 square feet. Additionally, 21 new leases were signed totaling approximately 66,000 square feet. Not included in occupancy are 23 leases totaling approximately 138,000 square feet, which have been fully executed as of December 11, 2006. These leases bring the portfolio to 92.8% leased as of December 11, 2006 as compared to 91.9% as of November 10, 2006. Consistent with prior earnings guidance, the Company expects average occupancy during the first quarter of 2007 to be approximately 91%.

With these leasing statistics returning to expected levels, the Company will discontinue the monthly reporting of leasing activity and return to the quarterly release of leasing statistics.

Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, acquisition, ownership, management, and leasing of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 66 office properties located in 11 states with an aggregate of approximately 12.9 million square feet of leasable space as of December 11, 2006. The Company also offers fee- based real estate services through its wholly owned subsidiary, Parkway Realty Services, to its owned properties and to its third party and minority interest properties.

Parkway Properties, Inc.'s press releases and additional information about the Company are available on the World Wide Web at http://www.pky.com/.

CONTACT: STEVEN G. ROGERS PRESIDENT & CHIEF EXECUTIVE OFFICER WILLIAM R. FLATT CHIEF FINANCIAL OFFICER [phone] Parkway Properties, Inc. Leasing Status 12/11/2006 Consol- Unconsoli- Wholly idated dated Owned JVs JVs Total Occupancy Percentage 12/1/06 91.5% 90.1% 94.9% 91.7% Total Square Footage 11,179,352 790,011 953,321 12,922,684 Vacancy (A) 946,914 78,251 48,307 1,073,472 Commencement City Building Square Feet Quarter Year Atlanta, GA Hightower Centre 873 873 1 2007 Charlotte, NC Carmel Crossing 3,133 3,133 4 2006 Charlotte, NC Carmel Crossing 3,713 3,713 4 2006 Chicago, IL 111 East Wacker 33,681 33,681 2 2007 Chicago, IL 111 East Wacker 33,681 33,681 2 2007 Chicago, IL 233 North Michigan 2,292 2,292 2 2007 Hampton Greenbrier Roads, VA Tower II 3,302 3,302 1 2007 Houston, TX One Commerce Green 7,507 7,507 4 2006 Jackson, MS City Centre 10,413 10,413 4 2006 Jackson, MS City Centre 4,613 4,613 1 2007 Jackson, MS City Centre 1,098 1,098 1 2007 Jackson, MS One Jackson Place 3,553 3,553 1 2007 Jacksonville, Riverplace FL South 1,188 1,188 4 2006 Knoxville, TN First Tennessee Plaza 968 968 1 2007 Memphis, TN Forum I 3,305 3,305 4 2006 Memphis, TN Morgan Keegan Tower 1,348 1,348 1 2007 Nashville, TN Bank of America Plaza 6,549 6,549 1 2007 Nashville, TN Bank of America Plaza 1,758 1,758 1 2007 Orlando, FL Citrus Center 953 953 4 2006 Orlando, FL Citrus Center 4,387 4,387 4 2006 Orlando, FL Maitland 100 1,426 1,426 1 2007 Richmond, VA Moorefield III 2,735 2,735 1 2007 Tampa/St. Wachovia Pete, FL Plaza 5,538 5,538 1 2007 Sum of signed leases (B) 129,742 1,426 6,846 138,014 Adjusted Vacancy (A less B) 817,172 76,825 41,461 935,458 Leased Percentage 92.7% 90.3% 95.7% 92.8%
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