Item 2. Properties
Item 2. Properties
The following table sets forth certain information related to operating properties in which we have an ownership interest. Except as noted, all information presented is as of December 31, 2020 ($ in thousands):
Operating Properties
Company's Share
Office Properties Rentable Square Feet Financial Statement Presentation Company's Ownership Interest End of Period Leased Weighted Average Occupancy (1) % of Total
Net Operating
Income (2) Property Level Debt (3) Annualized Rent (4)
Spring & 8th (5) 765,000 Consolidated 100% 100.0% 100.0% 6.2% $ —
Terminus (5) (6) 1,226,000 Consolidated 100% 85.1% 80.9% 5.7% 195,489
Northpark (5) 1,539,000 Consolidated 100% 90.9% 91.0% 5.7% —
Promenade 777,000 Consolidated 100% 89.6% 90.2% 3.5% 92,492
3344 Peachtree 484,000 Consolidated 100% 95.3% 88.3% 3.0% —
Buckhead Plaza (5) 666,000 Consolidated 100% 73.2% 72.6% 2.5% —
1200 Peachtree (6) 370,000 Consolidated 100% 100.0% 100.0% 2.0% —
3350 Peachtree 413,000 Consolidated 100% 95.2% 95.2% 1.9% —
8000 Avalon 229,000 Consolidated 90% 97.8% 98.7% 1.5% —
3348 Peachtree 258,000 Consolidated 100% 91.0% 91.1% 1.1% —
Meridian Mark Plaza 160,000 Consolidated 100% 100.0% 100.0% 1.0% —
Emory University Hospital Midtown 358,000 Unconsolidated 50% 98.6% 97.8% 0.9% 33,098
ATLANTA 7,245,000 90.7% 89.5% 35.0% 321,079
The Domain (5) (6) 1,603,000 Consolidated 100% 100.0% 93.7% 10.0% —
One Eleven Congress 519,000 Consolidated 100% 87.6% 89.6% 3.9% —
The Terrace (5) (6) 619,000 Consolidated 100% 90.6% 86.6% 3.6% —
San Jacinto Center 399,000 Consolidated 100% 93.9% 92.5% 2.8% —
Colorado Tower 373,000 Consolidated 100% 99.1% 93.2% 2.3% 114,114
816 Congress 435,000 Consolidated 100% 83.9% 86.1% 2.2% 77,917
Domain Point (5) (6) 243,000 Consolidated 97% 90.6% 86.6% 1.4% —
Research Park V 173,000 Consolidated 100% 97.1% 97.1% 0.9% —
AUSTIN 4,364,000 94.3% 90.9% 27.1% 192,031
Fifth Third Center 692,000 Consolidated 100% 99.5% 98.8% 3.7% 136,676
One South at the Plaza
(fka Bank of America Plaza) (6) 891,000 Consolidated 100% 58.0% 82.9% 3.8% —
NASCAR Plaza 394,000 Consolidated 100% 99.4% 99.2% 2.1% —
Dimensional Place (6) 281,000 Unconsolidated 50% 95.6% 95.1% 1.6% —
The RailYard (6) 329,000 Consolidated 100% 96.8% 96.8% —% —
CHARLOTTE 2,587,000 83.8% 92.1% 11.2% 136,676
Hayden Ferry (5) 792,000 Consolidated 100% 97.9% 93.9% 5.3% —
Tempe Gateway 264,000 Consolidated 100% 78.1% 91.4% 1.4% —
111 West Rio 225,000 Consolidated 100% 100.0% 100.0% 1.2% —
PHOENIX 1,281,000 94.2% 94.5% 7.9% —
Corporate Center (5) 1,227,000 Consolidated 100% 97.0% 91.7% 6.2% —
The Pointe 253,000 Consolidated 100% 89.6% 92.1% 0.9% —
Harborview Plaza 205,000 Consolidated 100% 76.3% 77.3% 0.7% —
TAMPA 1,685,000 93.4% 90.0% 7.8% —
Legacy Union One (6) 319,000 Consolidated 100% 100.0% 100.0% 2.1% 67,437
5950 Sherry Lane (6) 197,000 Consolidated 100% 85.6% 89.6% 1.0% —
DALLAS 516,000 94.5% 96.0% 3.1% 67,437
BriarLake Plaza - Houston (5) (6) 835,000 Consolidated 100% 84.9% 85.7% 4.0% —
Burnett Plaza - Fort Worth (6) 1,023,000 Consolidated 100% 86.1% 85.1% 2.7% —
Carolina Square - Chapel Hill 158,000 Unconsolidated 50% 94.5% 86.9% 0.4% 13,004
OTHER OFFICE 2,016,000 85.9% 85.5% 7.1% 13,004
TOTAL OFFICE 19,694,000 90.7% 90.3% 99.2% $ 730,227 $ 703,872
Table continued on next page
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Company's Share
Office Properties Rentable Square Feet Financial Statement Presentation Company's Ownership Interest End of Period Leased Weighted Average Occupancy (1) % of Total
Net Operating
Income (2) Property Level Debt (3) Annualized Rent (4)
Other Properties
Carolina Square Apartment - Chapel Hill
(246 units) (6) 266,000 Unconsolidated 50% 100.0% 99.5% 0.7% $ 21,892
Carolina Square Retail - Chapel Hill 44,000 Unconsolidated 50% 89.8% 89.8% 0.1% 3,621
TOTAL OTHER 310,000 98.6% 98.1% 0.8% $ 25,513 $ 4,426
TOTAL 20,004,000 90.8% 90.3% 100.0% $ 755,740 $ 708,298
(1) The weighted average economic occupancy of the property over the period for which the property was available for occupancy.
(2) The Company's share of net operating income for the three months ended December 31, 2020.
(3) The Company's share of property specific mortgage debt, including premiums and net of unamortized loan costs, as of December 31, 2020.
(4) The Company's share of annualized rent represents the sum of the annualized rent including tenant's share of estimated operating expenses, if applicable, each tenant is paying as of the end of the reporting period. If a tenant is not paying rent due to a free rent concession, annualized rent is calculated based on the annualized contractual rent the tenant will pay in the first period it is required to pay rent. Included in this a mount is $15.9 million of annuali zed base rent for tenants in a free rent period.
(5) Contains two or more buildings that are grouped together for reporting purposes.
(6) Not included in Same Property as of December 31, 2020.
Office Lease Expirations
As of December 31, 2020, our leases expire as follows:
Year of Expiration Square Feet
Expiring (1) % of Leased
Space (1) Annual Contractual Rent ($000) (1) (2) % of Annual
Contractual
Rent (1) Annual
Contractual
Rent/Sq. Ft.
2021 1,988,585 11.0 % $ 69,480 8.5 % $ 34.94
2022 1,359,054 7.5 % 57,939 7.1 % 42.63
2023 1,552,657 8.6 % 65,266 8.0 % 42.04
2024 1,163,934 6.4 % 48,649 5.9 % 41.80
2025 2,023,617 11.2 % 90,328 11.0 % 44.64
2026 1,622,577 9.0 % 75,691 9.2 % 46.65
2027 1,506,613 8.3 % 63,785 7.8 % 42.34
2028 1,301,956 7.2 % 59,948 7.3 % 46.04
2029 1,067,126 5.9 % 49,907 6.1 % 46.77
2030 & Thereafter 4,490,339 24.9 % 237,849 29.1 % 52.97
Total 18,076,458 100.0 % $ 818,842 100.0 % $ 45.30
(1) Company's share.
(2) Annual Contractual Rent is the estimated rent in the year of expiration. It includes the minimum base rent and an estimate of tenant's share of operating expenses, if applicable, as defined in the respective leases.
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Top 20 Office Tenants
As of December 31, 2020, our top 20 office tenants were as follows:
Tenant (1) Number of Properties Occupied Number of Markets Occupied Company's Share of Square Footage Company's Share of Annualized Rent (2) Percentage of Company's Share of Annualized Rent Weighted Average Remaining Lease Term (Years)
1 NCR Corporation 1 1 762,090 $ 35,754,771 5.1% 13
2 Amazon 4 3 602,945 28,185,712 4.0% 6
3 Expedia, Inc. 1 1 363,751 17,379,131 2.5% 9
4 Facebook,Inc. 1 1 323,328 16,944,648 2.4% 9
5 Bank of America 2 1 513,724 15,943,460 2.3% 3
6 Norfolk Southern Corporation 2 1 394,621 9,716,585 1.4% 1
7 Apache Corporation 1 1 210,012 9,150,550 1.3% 4
8 Americredit Financial Services (dba GM Financial) 2 2 333,782 9,136,376 1.3% 9
9 Pioneer Natural Resources Company
(fka Parsley Energy, L.P.) 2 1 135,612 8,570,098 1.2% 6
10 Wells Fargo Bank, NA 4 3 198,376 8,518,272 1.2% 5
11 Ovintiv USA Inc (fka Encana Oil & Gas (USA) Inc.) (3) 1 1 318,582 7,949,937 1.1% 6
12 Allstate 2 2 214,380 7,561,934 1.1% 7
13 ADP, LLC 1 1 225,000 7,479,972 1.1% 7
14 SVB Financial Group 1 1 188,940 7,397,135 1.0% 5
15 Regus Equity Business Centers, LLC 6 4 158,740 7,067,647 1.0% 5
16 Westrock Shared Services, LLC 1 1 205,185 6,955,383 1.0% 9
17 Dimensional Fund Advisors LP 1 1 132,434 6,871,718 1.0% 13
18 McGuirewoods LLP 3 3 197,282 6,864,549 1.0% 6
19 RigUp, Inc. 1 1 93,210 6,386,794 0.9% 8
20 Samsung Engineering America 1 1 133,860 6,153,090 0.8% 6
Total 5,705,854 $ 229,987,762 32.7% 7
(1) In some cases, the actual tenant may be an affiliate of the entity shown.
(2) Annualized Rent represents the annualized rent including tenant's share of estimated operating expenses, if applicable, paid by the tenant as of the date of this report. If the tenant is in a free rent period as of the date of this report, Annualized Rent represents the annualized contractual rent the tenant will pay in the first month it is required to pay rent.
(3) Ovintiv USA Inc. has multiple subleases for substantially all of its space. In the event of termination of the Ovintiv lease, such subleases would become direct leases with Cousins.
Note: This schedule includes leases that have commenced. Leases that have been signed but have not commenced are excluded.
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Tenant Industry Diversification
As of December 31, 2020, our tenant industry diversification was as follows:
Industry (1) Percentage of Company's Share of Annualized Rent (2)
Technology 21.1 %
Financial 16.9 %
Professional Services 14.5 %
Legal 10.4 %
Consumer Goods & Services 6.7 %
Energy & Utilities 5.4 %
Health Care 4.9 %
Insurance 4.7 %
Real Estate 4.0 %
Other 3.8 %
Construction/Design 2.5 %
Marketing/Media/Creative 2.4 %
Transportation 1.6 %
Government 1.1 %
Total 100 %
(1) Management uses SIC codes when available, along with judgment, to determine tenant industry classification.
(2) Annualized Rent represents the annualized rent including tenant's share of estimated operating expenses, if applicable, paid by the tenant as of the date of this report. If the tenant is in a free rent period as of the date of this report, Annualized Rent represents the annualized contractual rent the tenant will pay in the first month it is required to pay full rent.
Development Pipeline (1)
As of December 31, 2020, information on our projects under development was as follows ($ in thousands):
Project Type Market Company's Ownership Interest Construction Start Date Number of Square Feet / Apartment Units Estimated Project Cost(1)(2)
($ in thousands) Company's Share of Estimated Project Cost(2)
($ in thousands) Project Cost Incurred to Date(2)
($ in thousands) Company's Share of Project Cost Incurred to Date(2)
($ in thousands) Percent Leased Initial Revenue Recognition(3)
120 West Trinity Mixed Atlanta 20 % 1Q17 $ 89,000 $ 17,800 $ 87,872 $ 17,574
Office (4) 52,000 68 % 2Q20
Apartments 330 66 % 4Q19
10000 Avalon Office Atlanta 90 % 3Q18 251,000 96,000 86,400 94,771 85,294 75 % 1Q20
300 Colorado (5) Office Austin 50 % 4Q18 358,000 193,000 96,500 154,476 77,238 87 % 1Q21
Domain 10 Office Austin 100 % 4Q18 300,000 111,000 111,000 93,987 93,987 98 % 3Q20
100 Mill Office Phoenix 90 % 1Q20 287,000 153,000 137,700 54,848 49,364 44 % 1Q22
Total $ 642,000 $ 449,400 $ 485,954 $ 323,457
(1) This schedule shows projects currently under active development through the substantial completion of construction as well as properties in an initial lease up period prior to stabilization. Amounts included in the estimated project cost column are the estimated costs of the project through stabilization. Significant estimation is required to derive these costs, and the final costs may differ from these estimates.
(2) Estimated and incurred project costs include financing costs only on project-specific debt, and exclude certain allocated capitalized costs required by GAAP that are not incurred by the joint venture and fair value adjustments for legacy TIER projects that were recorded as a result of the Merger.
(3) Initial revenue recognition represents the quarter within which the Company estimates it will begin recognizing revenue under GAAP.
(4) The 120 West Trinity office component has 33,000 square feet of office space and 19,000 square feet of retail space.
(5) 300 Colorado estimated project cost will be funded with a combination of $67 million of equity contributed by the joint venture partners, followed by a $126 million construction loan.
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Land Holdings
As of December 31, 2020, we owned the following land holdings, either directly or indirectly through joint ventures:
Market Company's Ownership Interest Financial Statement Presentation Total Developable Land (Acres) Cost Basis of Land ($ in thousands)
3354 Peachtree Atlanta 95% Consolidated 3.0
901 West Peachtree (1) Atlanta 100% Consolidated 1.0
The Avenue Forsyth-Adjacent Land Atlanta 100% Consolidated 10.4
Domain Point 3 Austin 90% Consolidated 1.7
Domain 9 Austin 100% Consolidated 2.5
Domain Central (Domain 14 & 15) Austin 100% Consolidated 5.6
South End Station Charlotte 100% Consolidated 3.4
303 Tremont Charlotte 100% Consolidated 2.4
Legacy Union 2 & 3 Dallas 95% Consolidated 4.0
Victory Center Dallas 75% Unconsolidated 3.0
100 Mill-Adjacent Land Phoenix 90% Consolidated 0.7
Corporate Center 5 & 6 (2) Tampa 100% Consolidated 14.1
Total 51.8 $ 172,185
Company's Share 50.5 $ 167,383
(1) Includes a long-term ground lease with future obligation to purchase.
(2) Corporate Center 5 is controlled through a long-term ground lease.
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