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, 2025 ($ 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)
The Domain (5) (6) 2,080,000 Consolidated 100% 97.9% 97.9% 12.8% $ —
Sail Tower (7) 804,000 Consolidated 100% 100.0% 100.0% 6.9% —
300 Colorado 378,000 Consolidated 100% 100.0% 100.0% 4.0% —
One Eleven Congress 519,000 Consolidated 100% 86.4% 82.7% 2.8% —
San Jacinto Center 399,000 Consolidated 100% 90.3% 85.9% 2.8% —
The Terrace (5) 619,000 Consolidated 100% 88.1% 79.4% 2.4% —
Colorado Tower 373,000 Consolidated 100% 89.7% 89.7% 2.4% 101,140
Domain Point (5) 240,000 Consolidated 96.5% 93.6% 93.6% 1.2% —
Research Park V 173,000 Consolidated 100% 93.0% 93.0% 0.7% —
AUSTIN 5,585,000 94.8% 93.1% 36.0% 101,140
Terminus (5) 1,226,000 Consolidated 100% 83.9% 81.6% 4.8% 220,775
Spring & 8th (5) 765,000 Consolidated 100% 100.0% 100.0% 4.3% —
Buckhead Plaza (5) 678,000 Consolidated 100% 95.1% 93.2% 3.8% —
Promenade Tower 777,000 Consolidated 100% 87.1% 80.5% 3.5% —
725 Ponce 372,000 Consolidated 100% 87.6% 87.6% 2.4% —
3344 Peachtree 484,000 Consolidated 100% 94.5% 96.7% 2.4% —
Northpark (5) 1,405,000 Consolidated 100% 82.2% 69.1% 2.3% —
Avalon (5) 480,000 Consolidated 100% 99.2% 88.8% 2.3% —
3350 Peachtree 413,000 Consolidated 100% 90.8% 90.8% 1.6% —
Promenade Central 367,000 Consolidated 100% 83.2% 78.4% 1.4% —
3348 Peachtree 258,000 Consolidated 100% 77.0% 77.0% 0.8% —
Meridian Mark Plaza 160,000 Consolidated 100% 100.0% 100.0% 0.7% —
Medical Offices at Emory Hospital 358,000 Unconsolidated 50% 99.1% 99.1% 0.7% 41,244
Proscenium (7) 525,000 Unconsolidated 20% 44.8% 46.9% 0.1% —
120 West Trinity Office 43,000 Unconsolidated 20% 74.2% 74.2% 0.1% —
ATLANTA 8,311,000 88.5% 84.2% 31.2% 262,019
Vantage South End (5) (7) 639,000 Consolidated 100% 97.4% 97.4% 4.2% —
The RailYard 329,000 Consolidated 100% 99.0% 98.1% 1.8% —
201 N. Tryon 692,000 Consolidated 100% 52.6% 53.1% 1.7% 118,885
550 South 394,000 Consolidated 100% 55.8% 61.6% 0.9% —
CHARLOTTE 2,054,000 74.6% 75.7% 8.6% 118,885
Corporate Center (5) 1,227,000 Consolidated 100% 97.6% 94.5% 5.0% —
Heights Union (5) 294,000 Consolidated 100% 100.0% 100.0% 1.6% —
The Pointe 253,000 Consolidated 100% 93.9% 90.3% 0.8% —
Harborview Plaza 206,000 Consolidated 100% 80.9% 64.7% 0.4% —
TAMPA 1,980,000 95.8% 91.7% 7.8% —
Hayden Ferry (5) (8) 792,000 Consolidated 100% 95.4% 92.2% 3.0% —
100 Mill 288,000 Consolidated 90% 98.1% 98.1% 2.3% —
Tempe Gateway 264,000 Consolidated 100% 95.9% 95.7% 1.4% —
111 West Rio 225,000 Consolidated 100% 100.0% 100.0% 0.8% —
PHOENIX 1,569,000 96.8% 95.4% 7.5% —
The Link (6) 292,000 Consolidated 100% 93.6% 93.6% 2.6%
Legacy Union One 319,000 Consolidated 100% 100.0% 100.0% 1.4% —
5950 Sherry Lane 197,000 Consolidated 100% 90.2% 90.6% 0.8% —
DALLAS 808,000 95.3% 95.4% 4.8% —
BriarLake Plaza (5) 835,000 Consolidated 100% 97.4% 97.4% 3.3% —
HOUSTON 835,000 97.4% 97.4% 3.3% —
TOTAL OFFICE 21,142,000 90.7% 88.3% 99.2% $ 482,044
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 (7)
College Street Garage - Charlotte N/A Consolidated 100% N/A N/A 0.6% —
120 West Trinity Apartment - Atlanta (330 Units) 310,000 Unconsolidated 20% 96.6% 96.0% 0.1% —
Domain 4 (6) 157,000 Consolidated 100% 33.4% 33.4% 0.1% —
TOTAL OTHER 467,000 0.8% $ —
TOTAL 21,609,000 100.0% $ 482,044
(1) Operating properties exclude properties in our development pipeline and properties sold prior to December 31, 2025.
(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, 2025.
(3) The Company's share of net operating income for the three months ended December 31, 2025. 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, 2025.
(5) Contains two or more buildings that are grouped together for reporting purposes.
(6) Effective September 1, 2024, Domain 4 was 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, 2025. The Company plans to replace Domain 4, once its leases expire, with future development.
(7) Not included in Same Property as of December 31, 2025. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations for the definition of Same Property.
(8) Effective October 1, 2023, Hayden Ferry I, a 207,000 square foot building, in this group of buildings was excluded from Same Property, end of period leased, and weighted average occupancy due to commencement of the current full redevelopment of this building. This building will be excluded from the Phoenix and Total Office end of period leased and weighted average occupancy calculations until stabilized .
The properties included in the table above have annualized rent of $892.5 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 $52.3 million related to tenants in free rent period as of December 31, 2025 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. A calculation of our office portfolio’s average effective annual rent per square foot as of December 31, 2025 and 2024 is as follows:
As of December 31,
2025 2024
In-place gross rent (1) $ 49.91 $ 47.94
Net free rent (2) (3.05) (2.39)
Leasing commissions (3) (2.41) (2.20)
Tenant improvements (3) (6.14) (5.75)
Total leasing costs (11.60) (10.34)
Average effective annual rent $ 38.31 $ 37.60
(1) In-place gross rent equals the annualized cash rent including the tenant's share of estimated operating expenses, if applicable, as of the end of the period divided by occupied square feet. If the tenant is in a free rent period, annualized rent represents the annualized contractual rent the tenant will pay in the first month it is required to pay full cash rent.
(2) Annualized cost on a per square foot basis of leases in a free rent period as of the end of the period.
(3) Annual cost of commissions and tenant improvements on a per square foot basis generally incurred within a year of lease execution, most of which have been paid in full.
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Office Lease Expirations (1)
As of December 31, 2025, 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.
2026 1,049,119 5.7 % $ 48,193 4.8 % $ 45.94
2027 1,370,395 7.5 % 67,550 6.7 % 49.29
2028 1,728,499 9.4 % 88,842 8.8 % 51.40
2029 1,763,432 9.6 % 92,636 9.1 % 52.53
2030 1,694,868 9.2 % 88,455 8.7 % 52.19
2031 1,511,122 8.2 % 84,879 8.4 % 56.17
2032 2,284,537 12.4 % 131,790 13.0 % 57.69
2033 1,296,624 7.1 % 76,943 7.6 % 59.34
2034 1,140,459 6.2 % 65,186 6.4 % 57.16
2035 & Thereafter 4,516,257 24.7 % 268,190 26.5 % 59.38
Total 18,355,312 100.0 % $ 1,012,664 100.0 % $ 55.17
(1) Company's share of leases expiring after December 31, 2025. 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, 2025, 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 1,461,805 $ 79,741 8.9% 4.7
2 Alphabet 1 1 799,149 54,936 6.1% 12.1
3 NCR Voyix 2 2 815,634 42,692 4.8% 7.4
4 ExxonMobil 1 1 298,396 21,850 2.4% 7.0
5 IBM 1 1 319,863 19,032 2.1% 14.7
6 Expedia 1 1 315,882 17,546 2.0% 5.2
7 Apache 1 1 362,803 14,743 1.6% 12.9
8 Ovintiv USA (3) 1 1 318,582 8,564 1.0% 1.2
9 Deloitte 4 3 193,751 8,478 0.9% 7.9
10 McGuireWoods LLP 2 2 176,498 8,211 0.9% 16.4
11 ADP 1 1 225,000 8,099 0.9% 2.2
12 Wells Fargo 5 3 159,114 7,833 0.9% 4.0
13 BlackRock 1 1 131,656 7,745 0.9% 10.4
14 Smurfit Westrock 1 1 181,286 7,028 0.8% 4.3
15 Amgen 1 1 163,169 6,874 0.8% 2.8
16 McKinsey & Company 2 2 130,513 6,794 0.8% 6.9
17 RigUp 1 1 93,210 6,773 0.8% 2.6
18 International Workplace Group 4 4 123,625 6,552 0.7% 6.3
19 Samsung Engineering America 1 1 133,860 6,507 0.7% 0.9
20 Time Warner Cable 2 1 119,018 6,301 0.6% 2.8
Total 6,522,814 $ 346,299 38.6% 7.1
(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, 2025. If the tenant is in a free rent period as of December 31, 2025, 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 $11.3 million of annualized rent for tenants in a free rent period.
(3) Our current lease with Ovintiv USA is a triple net lease. Therefore, the Company’s share of annualized rent represents only base rent. In the third quarter of 2025, the Company proactively entered into an early termination agreement with Ovintiv. Approximately 88% of Ovintiv’s premises is subleased and upon Ovintiv’s expiration the subtenants will become direct tenants. Each subtenant’s remaining lease term is included in the remaining lease term reflected for Ovintiv above.
Note: This schedule includes leases that have commenced. Leases that have been signed but have not commenced are excluded.
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Tenant Industry Diversification
As of December 31, 2025, our tenant industry diversification was as follows:
Industry (1) Percentage of Company's Share of Annualized Rent (2)
Technology 30.5 %
Financial 13.4 %
Professional Services 9.6 %
Legal 9.4 %
Energy 6.5 %
Consumer Goods & Services 6.2 %
Real Estate 5.4 %
Health Care 5.2 %
Other 4.8 %
Insurance 4.3 %
Marketing/Media/Telecom 2.4 %
Construction/Design 2.3 %
Total 100.0 %
(1) Management uses SIC codes when available, along with judgment, to determine tenant industry classification.
(2) Annualized Rent represents the annualized cash rent including tenant's share of estimated operating expenses, if applicable, paid by the tenant as of the date of this report. If the tenant is in a free rent period as of the date of this report, Annualized Rent represents the annualized contractual rent the tenant will pay in the first month it is required to pay full rent.
Development Pipeline (1)
As of December 31, 2025, information on our projects under development was as follows ($ 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 $ 582,617 $ 291,309
Office and Retail 450,000 53 % 4Q23
Apartments 542 89 % 2Q24
Total $ 589,100 $ 294,550 $ 582,617 $ 291,309
(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 is being funded with a combination of $315.6 million of equity contributed by the joint venture partners and a construction loan with a current capacity of $273.5 million of which the Company's share is $136.8 million. See note 6 to the Condensed Consolidated Financial Statements for additional information on the construction loan. These costs include approximately $66 million of site and associated infrastructure work related to a future phase. The estimated project cost includes revisions related to updated initial leasing costs and construction loan interest costs.
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Land Holdings
As of December 31, 2025, we owned the following land holdings, either directly or indirectly through joint ventures:
Market Company's Ownership Interest Financial Statement Presentation Total Developable Land (Acres)
3354/3356 Peachtree Atlanta 95% Consolidated 3.2
715 Ponce Atlanta 50% Unconsolidated 1.0
887 West Peachtree Atlanta 100% Consolidated 1.6
Domain Point 3 Austin 90% Consolidated 1.7
Domain Central Austin 100% Consolidated 5.6
South End Station Charlotte 100% Consolidated 3.4
303 Tremont (1) Charlotte 100% Consolidated 2.4
Legacy Union 2 & 3 Dallas 95% Consolidated 4.0
Corporate Center 5 & 6 (2) Tampa 100% Consolidated 14.1
Total 37.0
Total Cost Basis of Land ($ in thousands) $ 162,809
Company's Share of Cost Basis of Land ($ in thousands) $ 156,003
(1) 303 Tremont is under contract for sale and is expected to close in the second half of 2026.
(2) Corporate Center 5 is controlled through a long-term ground lease.