2nd Gen Leasing Activity Continues to be Strong
1,100,000 SF of Leases Signed to Date in Third Quarter
Includes over 200,000 SF of New Leases
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Closes $74 Million of Non-Core Dispositions
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RALEIGH, N.C., Sept. 14, 2026 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE: HIW) announced it has signed 1,100,000 square feet of second generation leases since July 1, 2026, including over 200,000 square feet of new leases. This activity includes several long-term renewals with large customers across multiple markets.
Ted Klinck, President and Chief Executive Officer, stated, "Our leasing activity continues to be strong with over 1.1 million square feet of second gen deals signed during the first two months of the quarter and a healthy leasing pipeline of new and renewal prospects. With the lack of new supply currently under construction and dwindling blocks of high-quality space available in the BBDs of our markets, we continue to drive occupancy and rents higher while reducing our near-term lease rollover risk..
The Company has also closed two previously announced non-core sales aggregating $73.5 million. First, the Company has sold six non-core office buildings encompassing 472,000 square feet in the Innsbrook submarket of Richmond. Second, the Company has sold a 118,000 square foot non-core office building in Century Center in Atlanta. With these sales, to date in 2026, the Company has sold a total of 11 non-core office buildings encompassing 1,461,000 square feet and 10 acres of joint venture-owned development land for an aggregate of $374.8 million that were projected to generate, on a combined basis, $30.1 million of annual cash net operating income and $30.3 million of annual GAAP net operating income in 2026.
About Highwoods
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust ("REIT") that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh and Tampa. Our vision is to be a leader in the evolution of commercial real estate for the benefit of our customers, our communities and those who invest with us. Our mission is to create environments and experiences that inspire our teammates and our customers to achieve more together. We are in the work-placemaking business and believe that by creating exceptional environments and experiences, we can deliver greater value to our customers, their teammates and, in turn, our shareholders. For more information about Highwoods, please visit our website at www.highwoods.com.
Forward-Looking Statements
Some of the information in this press release may contain forward-looking statements. Such statements include, in particular, statements about our plans, strategies and prospects such as the following: the expected financial and operational results and the related assumptions underlying our expected results; the planned sales of non-core assets and expected pricing and impact with respect to such sales, including the tax impact of such sales; the anticipated total investment, projected leasing activity, estimated replacement cost and expected net operating income of acquired properties and properties to be developed; and expected future leverage of the Company. You can identify forward-looking statements by our use of forward-looking terminology such as "may," "will," "expect," "anticipate," "estimate," "continue" or other similar words. Although we believe that our plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that our plans, intentions or expectations will be achieved.
Factors that could cause our actual results to differ materially from Highwoods' current expectations include, among others, the following: the financial condition of our customers could deteriorate; our assumptions regarding potential losses related to customer financial difficulties could prove incorrect; counterparties under our debt instruments, particularly our revolving credit facility, may attempt to avoid their obligations thereunder, which, if successful, would reduce our available liquidity; we may not be able to lease or re-lease second generation space, defined as previously occupied space that becomes available for lease, quickly or on as favorable terms as old leases; we may not be able to lease newly constructed buildings as quickly or on as favorable terms as originally anticipated; we may not be able to complete development, acquisition, reinvestment, disposition or joint venture projects as quickly or on as favorable terms as anticipated; development activity in our existing markets could result in an excessive supply relative to customer demand; our markets may suffer declines in economic and/or office employment growth; increases in interest rates could increase our debt service costs; increases in operating expenses could negatively impact our operating results; natural disasters and climate change could have an adverse impact on our cash flow and operating results; we may not be able to meet our liquidity requirements or obtain capital on favorable terms to fund our working capital needs and growth initiatives or repay or refinance outstanding debt upon maturity; and the Company could lose key executive officers.
This list of risks and uncertainties, however, is not intended to be exhaustive. You should also review the other cautionary statements we make in "Risk Factors" set forth in our 2025 Annual Report on Form 10-K. Given these uncertainties, you should not place undue reliance on forward-looking statements. We undertake no obligation to publicly release the results of any revisions to these forward-looking statements to reflect any future events or circumstances or to reflect the occurrence of unanticipated events.
| Contact: | Brendan Maiorana Executive Vice President and Chief Financial Officer brendan.maiorana@highwoods.com 919-872-4924 |
