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, 2024 ($ in thousands):
Operating Properties (1)
Company's Share
Office Properties Rentable Square Feet Financial Statement Presentation Company's Ownership Interest End of Period Leased Weighted Average Occupancy (2) % of Total
Net Operating
Income (3) Property Level Debt (4)
Terminus (5) 1,226,000 Consolidated 100% 82.5% 78.9% 5.5% $ 220,731
Spring & 8th (5) 765,000 Consolidated 100% 100.0% 100.0% 5.1% —
Buckhead Plaza (5) 678,000 Consolidated 100% 94.5% 92.8% 4.2% —
Northpark (5) 1,539,000 Consolidated 100% 73.8% 71.8% 3.6% —
Promenade Tower 777,000 Consolidated 100% 88.8% 82.2% 3.3% —
Avalon (5) 480,000 Consolidated 100% 94.7% 93.3% 2.8% —
3344 Peachtree 484,000 Consolidated 100% 97.2% 95.2% 2.7% —
725 Ponce 372,000 Consolidated 100% 87.6% 87.6% 2.6% —
3350 Peachtree 413,000 Consolidated 100% 84.0% 71.4% 1.6% —
Promenade Central (6) (7) 367,000 Consolidated 100% 78.4% 74.4% 1.4% —
3348 Peachtree 258,000 Consolidated 100% 80.3% 80.3% 0.9% —
Medical Offices at Emory Hospital 358,000 Unconsolidated 50% 99.1% 99.1% 0.9% 41,188
Meridian Mark Plaza 160,000 Consolidated 100% 100.0% 99.3% 0.6% —
Proscenium (6) 525,000 Unconsolidated 20% 62.8% 70.7% 0.3% —
120 West Trinity Office 43,000 Unconsolidated 20% 74.2% 74.2% 0.1% —
ATLANTA (7) 8,445,000 86.8% 84.1% 35.6% 261,919
The Domain (5) (8) 1,742,000 Consolidated 100% 100.0% 99.5% 12.1% —
300 Colorado 378,000 Consolidated 100% 100.0% 100.0% 4.6% —
San Jacinto Center 399,000 Consolidated 100% 89.1% 91.5% 3.2% —
Colorado Tower 373,000 Consolidated 100% 98.8% 98.8% 3.1% 103,920
One Eleven Congress 519,000 Consolidated 100% 82.7% 79.9% 3.1% —
The Terrace (5) 619,000 Consolidated 100% 82.7% 78.1% 2.7% —
Domain Point (5) 240,000 Consolidated 96.5% 96.5% 96.5% 1.4% —
Sail Tower (6) 804,000 Consolidated 100% 100.0% 100.0% 1.3% —
Research Park V 173,000 Consolidated 100% 93.0% 93.0% 0.8% —
AUSTIN (8) 5,247,000 94.9% 93.3% 32.3% 103,920
Corporate Center (5) 1,227,000 Consolidated 100% 95.8% 92.8% 5.4% —
Heights Union (5) 294,000 Consolidated 100% 100.0% 100.0% 1.8% —
The Pointe 253,000 Consolidated 100% 91.2% 90.0% 0.8% —
Harborview Plaza 206,000 Consolidated 100% 93.6% 88.0% 0.6% —
TAMPA 1,980,000 95.6% 93.0% 8.6% —
Fifth Third Center 692,000 Consolidated 100% 92.1% 92.4% 3.5% 122,690
The RailYard 329,000 Consolidated 100% 98.7% 99.3% 2.1% —
Vantage South End (5) (6) 639,000 Consolidated 100% 97.4% 97.4% 1.6% —
550 South 394,000 Consolidated 100% 74.9% 74.9% 1.3% —
CHARLOTTE 2,054,000 1569000 91.5% 90.2% 8.5% 122,690
Hayden Ferry (5) (9) 792,000 Consolidated 100% 89.4% 83.3% 3.1% —
100 Mill 288,000 Consolidated 90% 98.1% 98.1% 2.7% —
Tempe Gateway 264,000 Consolidated 100% 95.7% 89.5% 1.3% —
111 West Rio 225,000 Consolidated 100% 100.0% 100.0% 1.0% —
PHOENIX (9) 1,569,000 94.1% 90.2% 8.1% —
Legacy Union One 319,000 Consolidated 100% 100.0% 100.0% 1.6% —
5950 Sherry Lane 197,000 Consolidated 100% 91.7% 83.3% 0.8% —
DALLAS 516,000 96.8% 93.6% 2.4% —
BriarLake Plaza (5) 835,000 Consolidated 100% 98.0% 97.5% 3.8% —
HOUSTON 835,000 98.0% 97.5% 3.8% —
TOTAL OFFICE (7) (8) (9) 20,646,000 91.6% 89.2% 99.3% $ 488,529
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 (2) % of Total
Net Operating
Income (3) Property Level Debt (4)
Other Properties
College Street Garage - Charlotte (6) N/A Consolidated 100% N/A N/A 0.5% —
120 West Trinity Apartment - Atlanta (330 Units) (6) 310,000 Unconsolidated 20% 94.7% 94.1% 0.1% —
Domain 4 (8) 157,000 Consolidated 100% 100.0% 100.0% 0.1%
TOTAL OTHER 467,000 0.7% $ —
TOTAL 21,113,000 100.0% $ 488,529
(1) Operating properties exclude properties in our development pipeline and properties sold prior to December 31, 2024.
(2) The weighted average economic occupancy of the property over the period for which the property was available for occupancy during the three months ended December 31, 2024.
(3) The Company's share of net operating income for the three months ended December 31, 2024. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations for the definition of net operating income and a reconciliation to Net Income.
(4) The Company's share of property-specific mortgage debt, net of unamortized loan costs, as of December 31, 2024.
(5) Contains two or more buildings that are grouped together for reporting purposes.
(6) Not included in Same Property as of December 31, 2024. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations for the definition of Same Property.
(7) A full building redevelopment of Promenade Central reached substantial completion in the fourth quarter of 2022. This building will be excluded from the Atlanta and Total Office end of period leased and weighted average occupancy calculations until stabilized.
(8) Effective September 1, 2024, Domain 4 is excluded from the square footage, end of period leased, and weighted average occupancy, and it is not included in Same Property as of December 31, 2024. The Company plans to replace Domain 4, once its leases expire, with future development.
(9) Hayden Ferry 1 in this group of buildings has been excluded from Same Property, end of period leased as of December 31, 2024, and weighted average occupancy for the quarter ended December 31, 2024 due to commencement of a full redevelopment of this building effective October 1, 2023. It is also excluded from the Phoenix and Total Office end of period leased and weighted average occupancy calculations.
The properties included in the table above have annualized rent of $843.7 million, which represents the sum of the annualized cash rent including tenant's share of estimated operating expenses, if applicable, each tenant is paying as of the end of the reporting period. Included in this amount is $43.5 million related to tenants in free rent period as of December 31, 2024 due to free rent concessions. For those tenants, annualized rent is calculated based on the annualized rent the tenant will pay in the first period it is required to pay rent.
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Office Lease Expirations (1)
As of December 31, 2024, our leases expire as follows:
Year of Expiration Square Feet
Expiring % of Leased
Space Annual Contractual Rent (in thousands) (2) % of Annual
Contractual
Rent Annual
Contractual
Rent/Sq. Ft.
2025 1,397,186 7.7 % $ 61,025 6.3 % $ 43.68
2026 1,221,585 6.7 % 56,897 5.8 % 46.58
2027 1,645,532 9.1 % 76,017 7.8 % 46.20
2028 1,629,295 9.0 % 83,183 8.5 % 51.05
2029 1,753,133 9.6 % 91,851 9.4 % 52.39
2030 1,545,127 8.5 % 80,928 8.3 % 52.38
2031 1,292,870 7.1 % 75,815 7.8 % 58.64
2032 2,207,844 12.1 % 127,876 13.1 % 57.92
2033 1,147,859 6.3 % 67,279 6.9 % 58.61
2034 &Thereafter 4,336,497 23.9 % 252,099 26.1 % 58.13
Total 18,176,928 100.0 % $ 972,970 100.0 % $ 53.53
(1) Company's share of leases expiring after December 31, 2024. Expiring square footage for which new leases have been executed is reflected based on the expiration date of the new lease.
(2) Annual Contractual Rent is the estimated rent in the year of expiration. It includes the minimum base rent and an estimate of the 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, 2024, 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 (in thousands) (2) Percentage of Company's Share of Annualized Rent Weighted Average Remaining Lease Term (Years)
1 Amazon 5 3 1,296,397 $ 69,610 8.1% 5.2
2 Alphabet 1 1 799,149 53,924 6.3% 13.1
3 NCR Voyix 2 2 815,634 41,277 4.8% 8.4
4 ExxonMobil 2 1 359,660 25,176 2.9% 6.7
5 IBM (3) 1 1 319,863 18,755 2.2% 15.7
6 Expedia 1 1 315,882 17,139 2.0% 6.2
7 Apache 1 1 365,614 14,623 1.7% 13.8
8 Bank of America 2 2 347,139 12,910 1.5% 1.0
9 Ovintiv USA 1 1 318,582 8,437 1.0% 2.5
10 ADP 1 1 225,000 7,894 0.9% 3.2
11 Wells Fargo 5 3 159,114 7,628 0.9% 5.0
12 Smurfit Westrock 1 1 205,185 7,535 0.9% 5.3
13 BlackRock 1 1 131,656 7,297 0.9% 11.4
14 Amgen 1 1 163,169 6,833 0.8% 3.8
15 Lendingtree 1 1 161,321 6,805 0.8% 11.8
16 Workrise Technologies 1 1 93,210 6,678 0.8% 3.6
17 McKinsey & Company 2 2 130,513 6,541 0.8% 7.9
18 Regus Equity Business Centers 4 4 123,625 6,474 0.8% 7.3
19 Samsung Engineering America 1 1 133,860 6,367 0.7% 1.9
20 Allstate 1 1 148,262 5,937 0.7% 5.0
Total 6,612,835 $ 337,840 39.5% 7.5
(1) In some cases, the actual tenant may be an affiliate of the entity shown, and the entity shown may not be a guarantor of the obligations of that tenant.
(2) Annualized Rent represents the annualized cash rent including the tenant's share of estimated operating expenses, if applicable, paid by the tenant as of December 31, 2024. If the tenant is in a free rent period as of December 31, 2024, Annualized Rent represents the annualized contractual rent the tenant will pay in the first month it is required to pay full cash rent. Included in annualized rent is $10.2 million of annualized rent for tenants in a free rent period.
(3) IBM has assumed, effective January 1, 2026, the existing lease at Domain 12 from Meta Platforms. Additionally, IBM has extended the lease maturity from 2031 to 2040.
Note: This schedule includes leases that have commenced. Leases that have been signed but have not commenced are excluded.
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Tenant Industry Diversification
As of December 31, 2024, our tenant industry diversification was as follows:
Industry (1) Percentage of Company's Share of Annualized Rent (2)
Technology 31.2 %
Financial 14.3 %
Professional Services 9.3 %
Legal 8.7 %
Consumer Goods & Services 7.2 %
Energy 6.9 %
Health Care 5.6 %
Real Estate 5.2 %
Insurance 3.8 %
Other 3.9 %
Marketing/Media/Telecom 2.2 %
Construction/Design 1.7 %
Total 100.0 %
(1) Management uses SIC codes when available, along with judgment, to determine tenant industry classification.
(2) Annualized Rent represents the annualized cash rent including tenant's share of estimated operating expenses, if applicable, paid by the tenant as of the date of this report. If the tenant is in a free rent period as of the date of this report, Annualized Rent represents the annualized contractual rent the tenant will pay in the first month it is required to pay full rent.
Development Pipeline (1)
As of December 31, 2024, information on our projects under development was as follows ($ in thousands):
Project Type Market Company's Ownership Interest Construction Start Date Square Feet/Units Estimated Project Cost (1) Company's Share of Estimated Project Cost (1) Project Cost Incurred to Date (1) Company's Share of Project Cost Incurred to Date (1) Percent Leased Initial Occupancy (2)
Neuhoff (3) Mixed Nashville 50 % 3Q21 $ 589,100 $ 294,550 $ 543,461 $ 271,731
Office and Retail 450,000 46 % 4Q23
Apartments 542 38 % 2Q24
Domain 9 Office Austin 100 % 2Q21 338,000 147,000 147,000 130,840 130,840 98 % 1Q24
Total $ 736,100 $ 441,550 $ 674,301 $ 402,571
(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. Significant estimation is required to derive these costs, and the final costs may differ from these estimates. Estimated and incurred project costs are construction costs, initial leasing costs, and financing costs on project-specific debt. Neuhoff has a project-specific construction loan (see footnote 3 below). The above schedule excludes any financing cost assumptions for projects without project-specific debt and any other incremental capitalized costs required by GAAP.
(2) Initial occupancy represents the quarter within which the Company first recognized, or estimates it will begin recognizing, revenue under GAAP. The Company capitalizes interest, real estate taxes, and certain operating expenses on the unoccupied portion of office and retail properties, which have ongoing construction of tenant improvements, until the earlier of (1) the date on which the project achieves 90% economic occupancy or (2) one year from cessation of major construction activity. For residential project construction, the Company continues to capitalize interest, real estate taxes, and certain operating expenses until cessation of major construction activity.
(3) The Neuhoff estimated project cost will be funded with a combination of $276.4 million of equity contributed by the joint venture partners and a $312.7 million construction loan. These costs include approximately $66 million of site and associated infrastructure work related to a future phase. The estimated project cost includes revisions related to updated initial leasing costs and construction loan interest costs.
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Land Holdings
As of December 31, 2024, we owned the following land holdings, either directly or indirectly through joint ventures:
Market Company's Ownership Interest Financial Statement Presentation Total Developable Land (Acres)
3354/3356 Peachtree Atlanta 95% Consolidated 3.2
715 Ponce Atlanta 50% Unconsolidated 1.0
887 West Peachtree Atlanta 100% Consolidated 1.6
Domain Point 3 Austin 90% Consolidated 1.7
Domain Central Austin 100% Consolidated 5.6
South End Station Charlotte 100% Consolidated 3.4
303 Tremont Charlotte 100% Consolidated 2.4
Legacy Union 2 & 3 Dallas 95% Consolidated 4.0
Corporate Center 5 & 6 (1) Tampa 100% Consolidated 14.1
Total 37.0
Total Cost Basis of Land ($ in thousands) $ 162,810
Company's Share of Cost Basis of Land ($ in thousands) $ 156,006
(1) Corporate Center 5 is controlled through a long-term ground lease.