Item 2. Properties
ITEM 2. PROPERTIES
Properties
The following table sets forth information about in-service office properties that we wholly own by geographic location at December 31, 2021:
Market Rentable
Square Feet Occupancy Percentage of Annualized Cash Rental Revenue (1)
Raleigh 6,335,000 92.8 % 22.9 %
Nashville 5,118,000 94.8 21.5
Atlanta 4,925,000 87.6 17.2
Tampa 3,328,000 88.7 12.0
Charlotte 1,611,000 94.2 7.7
Pittsburgh 2,152,000 92.6 7.5
Orlando 1,789,000 89.8 6.1
Richmond 1,851,000 87.2 4.5
Other 299,000 87.8 0.6
Total 27,408,000 91.2 % 100.0 %
__________
(1) Annualized Cash Rental Revenue is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) from our office properties for the month of December 2021 multiplied by 12.
The following table sets forth the net changes in rentable square footage of in-service properties that we wholly own:
Year Ended December 31,
2021 2020 2019
(in thousands)
Acquisitions 2,266 — 841
Developments Placed In-Service 897 — 898
Redevelopment/Other (3) (40) (6)
Dispositions (1,661) (4,489) (557)
Net Change in Rentable Square Footage 1,499 (4,529) 1,176
The following table sets forth operating information about in-service properties that we wholly own:
Average
Occupancy Annualized GAAP Rent
Per Square
Foot (1) Annualized Cash Rent
Per Square
Foot (2)
2017 92.5 % $ 24.05 $ 23.46
2018 91.7 % $ 24.68 $ 24.06
2019 91.4 % $ 26.46 $ 25.06
2020 90.7 % $ 29.23 $ 28.21
2021 90.0 % $ 30.75 $ 29.63
__________
(1) Annualized GAAP Rent Per Square Foot is rental revenue (base rent plus cost recovery income, including straight-line rent) for the month of December of the respective year multiplied by 12, divided by total occupied rentable square footage.
(2) Annualized Cash Rent Per Square Foot is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of December of the respective year multiplied by 12, divided by total occupied rentable square footage.
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Customers
The following table sets forth information concerning the 20 largest customers of properties that we wholly own at December 31, 2021:
Customer Rentable Square
Feet Annualized
Cash Rental
Revenue (1)
Percent of
Total
Annualized
Cash Rental
Revenue (1)
Weighted
Average
Remaining
Lease Term in
Years
(in thousands)
Federal Government 1,058,933 $ 29,571 3.97 % 7.4
Bank of America 652,313 27,286 3.67 12.2
Asurion, LLC 543,794 21,010 2.82 14.8
Metropolitan Life Insurance 667,228 19,275 2.59 9.1
Bridgestone Americas 506,128 18,104 2.43 15.7
PPG Industries 360,364 10,262 1.38 9.5
Mars Petcare 223,700 9,438 1.27 9.4
Vanderbilt University 294,389 9,337 1.25 4.4
EQT Corporation 317,052 8,138 1.09 2.8
Bass, Berry & Sims 213,951 8,052 1.08 3.1
Tivity 263,598 7,803 1.05 1.2
American General Life 173,834 6,666 0.90 5.1
Novelis 168,949 6,308 0.85 2.7
Albemarle Corporation 162,368 5,967 0.80 12.1
State of Georgia 288,443 5,813 0.78 3.0
Lifepoint Corporate Services 202,991 5,696 0.77 7.3
PNC Bank 162,223 5,389 0.72 5.9
Marsh USA, Inc. 136,246 5,137 0.69 5.7
Cigna 180,728 5,026 0.68 6.0
Regus PLC 169,833 4,999 0.67 6.2
Total 6,747,065 $ 219,277 29.46 % 8.7
__________
(1) Annualized Cash Rental Revenue is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of December 2021 multiplied by 12.
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Lease Expirations
The following tables set forth scheduled lease expirations for existing leases at office properties that we wholly owned at December 31, 2021:
Lease Expiring (1)
Number of Leases Expiring Rentable
Square Feet
Subject to
Expiring
Leases Percentage of
Leased Square
Footage
Represented
by Expiring
Leases Annualized
Cash Rental
Revenue
Under Expiring
Leases (2)
Average
Annual Cash
Rental Rate
Per Square
Foot for
Expirations Percent of
Annualized
Cash Rental
Revenue
Represented
by Expiring
Leases (2)
(in thousands)
2022 (3)
427 1,847,106 7.4 % $ 54,277 $ 29.38 7.3 %
2023 315 2,317,237 9.3 67,112 28.96 9.1
2024 327 2,755,874 11.0 85,219 30.92 11.5
2025 288 3,294,592 13.2 97,515 29.60 13.2
2026 241 2,330,660 9.3 67,967 29.16 9.2
2027 150 2,291,942 9.2 62,758 27.38 8.5
2028 91 1,814,047 7.3 55,402 30.54 7.5
2029 85 1,266,975 5.1 33,692 26.59 4.5
2030 107 1,404,233 5.5 40,244 28.66 5.4
2031 47 1,912,612 7.7 57,341 29.98 7.7
Thereafter 101 3,757,864 15.0 118,973 31.66 16.1
2,179 24,993,142 100.0 % $ 740,500 $ 29.63 100.0 %
__________
(1) Expirations that have been renewed are reflected above based on the renewal expiration date. Expirations include leases related to completed not stabilized development properties but exclude leases related to developments in-process.
(2) Annualized Cash Rental Revenue is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of December 2021 multiplied by 12.
(3) Includes 51,831 rentable square feet of leases that are on a month-to-month basis, which represent 0.2% of total annualized cash rental revenue.
In-Process Development
As of December 31, 2021, we were developing 0.4 million rentable square feet of office properties. The following table summarizes these announced and in-process office developments:
Property Market Rentable Square Feet Anticipated Total Investment (1)
Investment As Of December 31, 2021 (1)
Pre Leased % Estimated Completion Estimated Stabilization
($ in thousands)
GlenLake III Office & Retail (2)
Raleigh 218,250 $ 94,600 $ 7,329 14.6 % 3Q 23 1Q 26
2827 Peachtree (3)
Atlanta 135,300 79,000 12,158 62.4 3Q 23 1Q 25
353,550 $ 173,600 $ 19,487 32.9 %
__________
(1) Includes deferred lease commissions which are classified in deferred leasing costs on our Consolidated Balance Sheet.
(2) Retail portion recorded on our Consolidated Balance Sheet as land held for development, not development in-process.
(3) We own a 50% interest in this unconsolidated joint venture.
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Land Held for Development
At December 31, 2021, we estimate that we can develop approximately 4.7 million rentable square feet of office space on the wholly-owned development land that we consider core assets for our future development needs. Our core office development land is zoned and available for development, and nearly all of the land has utility infrastructure in place. We believe that our commercially zoned and unencumbered land gives us a development advantage over other commercial office development companies in many of our markets. We also own additional development land on which we or third parties can develop approximately 4.3 million square feet of mixed-use real estate projects, including retail and multi-family.
Joint Venture Investments
The following table sets forth information about our joint venture investments by geographic location at December 31, 2021:
Rentable
Square Feet Weighted
Average
Ownership
Interest (1)
Occupancy
Market
Kansas City (2)
291,504 50.0 % 87.2 %
Richmond (3)
345,344 50.0 99.2
Tampa (3)
150,000 80.0 10.7
Total 786,848 55.7 % 77.9 %
__________
(1) Weighted Average Ownership Interest is calculated using Rentable Square Feet.
(2) Excluding our 26.5% ownership interest in a real estate brokerage services company.
(3) This joint venture, which is consolidated, owns a newly completed, but not yet stabilized office property.
In addition, we own a 50.0% interest in 2827 Peachtree, an unconsolidated joint venture. See “Item 2. Properties - In-Process Development.”