Item 2. Properties
ITEM 2. PROPERTIES
Overview
As of December 31, 2020, we owned interests in 54 in-service office properties, and approximately 96% of our ALR was generated from select sub-markets located within the following major U.S. office markets: Dallas, Atlanta, Washington, D.C., Minneapolis, Boston, Orlando, and New York , with a majority of such revenue coming from Sunbelt markets. As of December 31, 2020 and 2019, our in-service portfolio was 86.8% and 89.7% (as restated to include one previously out-of-service asset, Two Pierce Place in Itasca, Illinois, which was placed back into service on January 1, 2020) leased, respectively, with an average lease term remaining as of each period end of approximately six years and an average lease size of between 15,000 and 20,000 square feet. Only two tenants account for 5% or more of our ALR; US Bancorp (5.1% of ALR) and State of New York (5.0% of ALR).
ALR related to our in-service portfolio was $515.1 million, or $36.12 per leased square foot, as of December 31, 2020 as compared with $496.2 million, or $33.91 per leased square foot, as of December 31, 2019. These rental rates are presented before consideration of the fact that several of our largest tenants self-perform various aspects of their building management; therefore, we do not count those expenses in our gross rent calculations. If the costs of these functions are added to these leases, our average gross rent for our in-service portfolio as of December 31, 2020, increases to $36.87 per leased square foot.
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Index to Financial Statements
Property Statistics
The following table shows the geographic diversification of our in-service portfolio as of December 31, 2020:
Location Annualized
Lease Revenue
(in thousands) Rentable Square
Feet
(in thousands) Percentage of
Annualized
Lease Revenue (%) Percent Leased (%)
Dallas $ 101,639 3,549 19.7 86.0
Atlanta 90,783 3,388 17.6 84.9
Washington, D.C. 70,204 1,620 13.6 82.0
Minneapolis 65,997 2,104 12.8 93.3
Boston 58,983 1,885 11.5 91.7
Orlando 54,404 1,754 10.6 92.3
New York 50,186 1,029 9.7 93.8
Other (1)
22,942 1,099 4.5 66.1
$ 515,138 16,428 100.0 86.8
(1) Includes 1430 Enclave Parkway and Enclave Place in Houston, Texas; and Two Pierce Place in Chicago, Illinois.
The following table shows lease expirations of our in-service office portfolio as of December 31, 2020 during each of the next thirteen years and thereafter, assuming no exercise of renewal options or termination rights:
Year of Lease Expiration Annualized
Lease Revenue
(in thousands) Percentage of
Annualized
Lease Revenue (%)
Available space $ — —
2021 29,929 5.8
2022 54,918 10.7
2023 52,422 10.2
2024 62,222 12.1
2025 58,546 11.4
2026 34,487 6.7
2027 43,691 8.5
2028 46,505 9.0
2029 28,000 5.4
2030 19,106 3.7
2031 6,224 1.2
2032 11,547 2.2
Thereafter 67,541 13.1
$ 515,138 100.0
Certain Restrictions Related to our Properties
As of December 31, 2020, only the 5 Wall Street building in Burlington, Massachusetts is held as collateral for debt, and no properties were subject to ground leases. Refer to Schedule III listed in the index of Item 15(a) of this report, for further details regarding our properties as of December 31, 2020.
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Table of Contents
Index to Financial Statements