Item 2. Properties
ITEM 2. PROPERTIES
Properties
The following table sets forth information about our portfolio by geographic location as of December 31, 2023:
Market Rentable
Square Feet Occupancy Percentage of Annualized GAAP Rental Revenue (1)
Raleigh 6,197,000 90.2 % 22.2 %
Nashville 5,099,000 89.9 20.7
Atlanta 4,931,000 86.2 16.5
Tampa 3,224,000 87.4 12.3
Charlotte 1,973,000 95.6 10.8
Orlando 1,790,000 93.5 6.5
Richmond 1,843,000 81.7 4.2
Other 2,155,000 86.1 6.8
Total 27,212,000 88.8 % 100.0 %
__________
(1) Annualized GAAP Rental Revenue is GAAP rental revenue (base rent plus cost recovery income, including straight-line rent) from our office properties for the month of December 2023 multiplied by 12.
The following table sets forth the net changes in rentable square footage of our portfolio:
Year Ended December 31,
2023 2022 2021
(in thousands)
Acquisitions — 367 2,266
Developments Placed In-Service — 263 897
Remeasurements/Other 5 (11) (3)
Dispositions (383) (437) (1,661)
Net Change in Rentable Square Footage (378) 182 1,499
The following table sets forth operating information about our portfolio:
Average
Occupancy Annualized GAAP Rent
Per Square
Foot (1) Annualized Cash Rent
Per Square
Foot (2)
2019 91.4 % $ 26.46 $ 25.06
2020 90.7 % $ 29.23 $ 28.21
2021 90.0 % $ 30.75 $ 29.63
2022 90.8 % $ 31.89 $ 30.51
2023 89.2 % $ 32.79 $ 32.18
__________
(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 in our portfolio as of December 31, 2023:
Customer Rentable Square
Feet Annualized
GAAP Rental
Revenue (1)
Percent of
Total
Annualized
GAAP Rental
Revenue (1)
Weighted
Average
Remaining
Lease Term in
Years
(in thousands)
Bank of America 648,440 $ 31,544 3.98 % 10.0
Asurion 543,794 27,473 3.47 12.8
Federal Government 784,598 22,177 2.80 4.7
Metropolitan Life Insurance 667,228 20,280 2.56 7.2
Bridgestone Americas 506,128 19,934 2.52 13.7
PPG Industries 370,927 10,732 1.35 7.5
Mars Petcare 223,700 9,820 1.24 7.4
Vanderbilt University 294,389 9,109 1.15 2.4
EQT 317,052 7,905 1.00 0.8
Bass, Berry & Sims 213,951 7,649 0.97 1.1
Albemarle Corporation 162,368 7,270 0.92 10.1
Deloitte & Touche 158,914 6,630 0.84 6.1
J.P. Morgan Chase & Co. 183,864 6,492 0.82 4.4
Novelis 168,949 5,863 0.74 0.7
Lifepoint Corporate Services 202,991 5,759 0.73 5.2
State of Georgia 288,443 5,622 0.71 1.3
Regus 169,833 5,498 0.69 4.8
CapFinancial Group 120,847 5,447 0.69 9.6
Delta Community Credit Union 128,589 5,250 0.66 8.8
The Cigna Group 180,728 5,080 0.64 4.0
Total 6,335,733 $ 225,534 28.48 % 7.6
__________
(1) Annualized GAAP Rental Revenue is GAAP rental revenue (base rent plus cost recovery income, including straight-line rent) for the month of December 2023 multiplied by 12.
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Lease Expirations
The following table sets forth scheduled lease expirations for existing leases in our portfolio as of December 31, 2023:
Lease Expiring (1)
Number of Leases Expiring Rentable
Square Feet
Subject to
Expiring
Leases Percentage of
Leased Square
Footage
Represented
by Expiring
Leases Annualized
GAAP Rental
Revenue
Under Expiring
Leases (2)
Average
Annual GAAP
Rental Rate
Per Square
Foot for
Expirations Percent of
Annualized
GAAP Rental
Revenue
Represented
by Expiring
Leases (2)
(in thousands)
2024 (3)
446 2,381,298 9.9 % $ 71,281 $ 29.93 9.0 %
2025 432 3,390,298 14.0 100,995 29.79 12.7
2026 327 2,439,609 10.1 74,552 30.56 9.4
2027 278 2,416,406 10.0 74,053 30.65 9.3
2028 228 2,469,053 10.2 79,941 32.38 10.1
2029 158 1,671,077 6.9 50,873 30.44 6.4
2030 161 1,939,855 8.0 60,274 31.07 7.6
2031 81 2,415,349 10.0 79,928 33.09 10.1
2032 56 868,526 3.6 32,537 37.46 4.1
2033 48 1,108,657 4.6 40,423 36.46 5.1
Thereafter 100 3,061,210 12.7 127,349 41.60 16.2
2,315 24,161,338 100.0 % $ 792,206 $ 32.79 100.0 %
__________
(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 GAAP Rental Revenue is GAAP rental revenue (base rent plus cost recovery income, including straight-line rent) for the month of December 2023 multiplied by 12.
(3) Includes 59,000 rentable square feet of leases that are on a month-to-month basis, which represent 0.2% of total annualized GAAP rental revenue.
In-Process Development
The following table summarizes our in-process office development activity as of December 31, 2023:
Property Market Own % Consolidated (Y/N) Rentable Square Feet Anticipated Total Investment (1)
Investment as of December 31, 2023 Pre Leased % Estimated Completion Estimated Stabilization
($ in thousands)
23Springs Dallas 50.0 % N 642,000 $ 460,000 $ 150,421 33.4 % 1Q 25 1Q 28
Midtown East Tampa 50.0 % N 143,000 83,000 28,817 16.1 1Q 25 2Q 26
Four Morrocroft (2)
Charlotte 100.0 % Y 18,000 12,000 9,392 100.0 2Q 24 2Q 24
803,000 $ 555,000 $ 188,630 31.8 %
__________
(1) Includes estimated lease up costs for tenant improvements and lease commissions until the property has reached stabilization.
(2) Investment includes deferred lease commissions which are classified in deferred leasing costs on our Consolidated Balance Sheet.
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Land Held for Development
As of December 31, 2023, we estimate that we can develop approximately 4.9 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 2.8 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 in-service joint venture investments by geographic location as of December 31, 2023:
Rentable
Square Feet Weighted
Average
Ownership
Interest (1)
Occupancy
Market
Dallas 542,000 50.0 % 98.2 %
Kansas City (2)
292,000 50.0 94.3
Richmond (3)
351,000 50.0 93.7
Tampa (4)
152,000 80.0 99.8
Total 1,337,000 53.4 % 96.4 %
__________
(1) Weighted Average Ownership Interest is calculated using Rentable Square Feet.
(2) Excludes our 26.5% ownership interest in a real estate brokerage services company.
(3) The joint venture in Richmond was deconsolidated effective January 1, 2023 and is now accounted for using the equity method of accounting.
(4) The joint venture in Tampa is consolidated.
In addition, we own 50.0% interests in 2827 Peachtree (Atlanta), Granite Park Six (Dallas), 23Springs (Dallas) and Midtown East (Tampa), four unconsolidated joint ventures that are currently developing projects that have not yet been placed in service.