Item 2. Properties
ITEM 2. PROPERTIES
Properties
The following table sets forth information about our portfolio by geographic location as of December 31, 2024:
Market Rentable
Square Feet Occupancy Percentage of Annualized GAAP Rental Revenue (1)
Nashville 5,098,000 89.0 % 20.3 %
Raleigh 5,592,000 88.6 20.2
Atlanta 4,935,000 83.7 16.5
Tampa 3,196,000 87.8 12.3
Charlotte 1,991,000 96.3 10.3
Orlando 1,789,000 88.3 6.5
Richmond 1,845,000 85.4 4.6
Other 2,754,000 79.5 9.3
Total 27,200,000 87.1 % 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 2024 multiplied by 12.
The following table sets forth the net changes in rentable square footage of our portfolio:
Year Ended December 31,
2024 2023 2022
(in thousands)
Acquisitions — — 367
Developments Placed In-Service 18 — 263
Remeasurements/Other (1)
575 5 (11)
Dispositions (605) (383) (437)
Net Change in Rentable Square Footage (12) (378) 182
__________
(1) Increase in square footage during 2024 is due to the inclusion of in-service properties owned by consolidated and unconsolidated joint ventures (at our share). See Explanatory Note.
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)
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
2024 88.0 % $ 33.73 $ 33.18
__________
(1) Annualized GAAP Rent Per Square Foot is GAAP 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, 2024:
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 $ 30,168 3.78 % 9.2
Asurion 543,794 28,042 3.51 11.8
Metropolitan Life Insurance 667,228 21,228 2.66 6.2
Federal Government 736,663 21,120 2.64 4.0
Bridgestone Americas 506,128 19,684 2.46 12.7
PPG Industries 370,927 11,284 1.41 6.5
Vanderbilt University 294,389 9,672 1.21 4.9
Mars Petcare 223,700 9,194 1.15 6.4
Albemarle Corporation 162,368 7,154 0.90 9.1
Bass, Berry & Sims 213,951 6,987 0.87 0.1
J.P. Morgan Chase & Co. 183,864 6,508 0.81 3.4
State of Georgia 302,443 6,144 0.77 1.6
Deloitte 132,328 6,027 0.75 5.9
Lifepoint Corporate Services 202,991 5,814 0.73 4.2
Delta Community Credit Union 128,589 5,531 0.69 7.8
CapFinancial Group 120,847 5,495 0.69 8.6
Regus 169,833 5,368 0.67 5.6
Fisher Asset Management 179,184 5,255 0.66 5.3
The Cigna Group 180,728 5,187 0.65 3.0
Global Payments 168,051 5,055 0.63 8.2
Total 6,136,446 $ 220,917 27.64 % 7.3
__________
(1) Annualized GAAP Rental Revenue is GAAP rental revenue (base rent plus cost recovery income, including straight-line rent) for the month of December 2024 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, 2024:
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)
2025 (3)
523 2,699,719 11.4 % $ 80,251 $ 29.73 10.0 %
2026 348 2,218,130 9.4 72,868 32.85 9.1
2027 349 2,668,478 11.3 85,833 32.17 10.7
2028 258 2,411,216 10.2 80,393 33.34 10.1
2029 228 1,864,565 7.9 58,353 31.30 7.3
2030 217 2,951,965 12.4 90,918 30.80 11.4
2031 107 2,537,503 10.7 83,703 32.99 10.5
2032 74 1,089,158 4.6 44,056 40.45 5.5
2033 62 1,219,071 5.1 44,773 36.73 5.6
2034 49 1,502,307 6.3 61,645 41.03 7.7
Thereafter 106 2,531,399 10.7 96,339 38.06 12.1
2,321 23,693,511 100.0 % $ 799,132 $ 33.73 100.0 %
__________
(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 2024 multiplied by 12.
(3) Includes 47,000 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, 2024:
Property Market Own % Consolidated (Y/N) Rentable Square Feet Anticipated Total Investment (1)
Investment as of December 31, 2024 Pre Leased % Estimated Completion Estimated Stabilization
($ in thousands)
23Springs Dallas 50.0 % N 642,000 $ 460,000 $ 299,422 61.6 % 1Q 25 1Q 28
Midtown East Tampa 50.0 % N 143,000 83,000 53,510 34.5 1Q 25 2Q 26
GlenLake Two Retail (2) Raleigh 100.0 % Y 8,600 8,100 1,241 100.0 1Q 26 1Q 26
793,600 $ 551,100 $ 354,173 57.1 %
__________
(1) Includes estimated lease up costs for tenant improvements and lease commissions until the property has reached stabilization.
(2) Will be recorded in development-in-process on our Consolidated Balance Sheets once we begin construction on the project.
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Land Held for Development
As of December 31, 2024, we estimate that we can develop approximately 4.6 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, 2024:
Rentable
Square Feet Weighted
Average
Ownership
Interest (1)
Occupancy
Market
Dallas 542,000 50.0 % 99.4 %
Kansas City (2)
292,000 50.0 89.4
Richmond 354,000 50.0 100.0
Tampa (3)
152,000 80.0 100.0
Total 1,340,000 53.4 % 97.5 %
__________
(1) Weighted Average Ownership Interest is calculated using Rentable Square Feet.
(2) Excludes our 26.5% unconsolidated ownership interest in a real estate brokerage services company.
(3) The Midtown West 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.