Item 2. Properties
Item 2. Properties
Overview
As of December 31, 2022, we owned 72 properties that contain an aggregate of approximately 12.8 million net rentable square feet and consist of 67 office properties and five mixed-use properties (collectively, the “Core Properties”), one development property and three redevelopment properties (collectively, the “Properties”). The properties are located in or near Philadelphia, Pennsylvania; Austin, Texas; Metropolitan Washington, D.C.; Southern New Jersey; and Wilmington, Delaware. As of December 31, 2022, the properties, excluding properties under development and redevelopment, were approximately 89.8% occupied. As of December 31, 2022, we also owned economic interests in twelve unconsolidated real estate ventures. See Note 4 “Investment in Unconsolidated Real Estate Ventures,” to our Consolidated Financial Statements for further information.
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Property Statistics
The following table shows lease expirations for the Core Properties as of December 31, 2022, during each of the next 10 years and thereafter. This table assumes no exercise of renewal options or termination rights:
Year of Lease Expiration December 31, Rentable Square Feet (in thousands) Final Annualized Base Rent Under Expiring Leases (a) (in thousands) Percentage of Total Final Annualized Base Rent Under Expiring Leases
2023
828 $ 29,572 6.0 %
2024 980 39,451 8.0 %
2025 1,238 51,369 10.5 %
2026 807 32,019 6.5 %
2027 1,542 63,091 12.8 %
2028 907 35,937 7.3 %
2029 1,358 62,482 12.7 %
2030 821 39,383 8.0 %
2031 482 23,299 4.8 %
2032 464 23,726 4.8 %
2033 and thereafter 2,065 91,243 18.6 %
11,492 $ 491,572 100 %
(a) Represents the annualized cash rental rate of base rents, including tenant reimbursements, in the final month prior to expiration. Tenant reimbursements generally include payment of a portion of real estate taxes, operating expenses, and common area maintenance and utility charges.
The following table shows the geographic locations for the Core Properties as of December 31, 2022. For more information about our geographic locations, see Note 19 “Segment Information” to our Consolidated Financial Statements:
Location Number of Properties Net Rentable Square Feet (in thousands) Percentage Leased as of December 31, 2022
Leased Square Feet (in thousands) Total Base Rent (a) (in thousands) Percentage of Base Rent
Philadelphia 11 4,726 97.2 % 4,592 $ 142,389 41.5 %
Pennsylvania Suburbs 33 3,949 93.4 % 3,687 113,740 33.2 %
Austin 20 2,768 84.3 % 2,333 60,953 17.8 %
Metropolitan Washington, D.C. 4 770 75.7 % 583 16,932 4.9 %
Other 4 578 73.7 % 426 9,046 2.6 %
72 12,791 90.9 % 11,621 $ 343,060 100.0 %
(a) Represents base rents earned during the year, including tenant reimbursements, and excludes parking income, tenant inducements, and deferred market rent adjustments.
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The following table shows the major tenants of the Core Properties as of December 31, 2022 and assumes that none of the tenants exercise renewal options or termination rights, if any, at or prior to scheduled expirations:
Tenant Name Annualized Base Rents (a) (in thousands) Percentage of Aggregate Annualized Base Rents
IBM, Inc. $ 21,140 4.8 %
Spark Therapeutics, Inc. 17,210 3.9 %
Comcast Corporation 12,106 2.8 %
FMC Corporation 11,711 2.7 %
CSL Behring, LLC 10,966 2.5 %
Troutman Pepper Hamilton Sanders LLP 9,912 2.3 %
Lincoln National Management Corporation 9,861 2.3 %
Independence Blue Cross, LLC 8,241 1.9 %
The Trustees of the University of Pennsylvania 7,358 1.7 %
SailPoint Technologies, Inc. 7,283 1.7 %
Other 321,022 73.4 %
$ 436,810 100.0 %
(a) Represents the annualized base rent, including tenant reimbursements, for each lease in effect at December 31, 2022. Tenant reimbursements generally include payment of a portion of real estate taxes, operating expenses, and common area maintenance and utility charges.
Developments/Redevelopments
As of December 31, 2022, we were developing/redeveloping 0.6 million rentable square feet of office/life science properties and one parking facility and have recently completed but have yet to stabilize an office property comprising 0.2 million rentable square feet.