Item 2. Properties
ITEM 2. PROPERTIES
Overview
As of December 31, 2021, we owned interests in 55 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: Atlanta, Dallas, Washington, D.C., Minneapolis, Boston, Orlando, and New York , with over 60% of such revenue coming from Sunbelt markets. As of December 31, 2021 and 2020, our in-service portfolio was approximately 86% and 87% leased, respectively, with an average lease term remaining as of each period end of approximatel y six years and an average lease size of 15,000 square feet. No tenant accounts for more than 5% of our ALR.
ALR related to our in-service portfolio was $536.8 million, or $36.81 per leased square foot, as of December 31, 2021 as compared with $515.1 million, or $36.12 per leased square foot, as of December 31, 2020. 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, 2021, increases to approximately $37.54 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, 2021:
Location Annualized
Lease Revenue
(in thousands) Rentable Square
Feet
(in thousands) Percentage of
Annualized
Lease Revenue (%) Percent Leased (%)
Atlanta $ 111,739 4,016 20.8 84.1
Dallas 104,979 3,544 19.6 84.8
Washington, D.C. 67,463 1,620 12.6 80.7
Minneapolis 64,571 2,104 12.0 90.6
Boston 61,435 1,885 11.4 92.1
Orlando 54,796 1,754 10.2 91.4
New York 48,103 1,029 9.0 89.5
Other (1)
23,718 1,099 4.4 66.1
$ 536,804 17,051 100.0 85.5
(1) Includes 1430 Enclave Parkway and Enclave Place in Houston, Texas; and Two Pierce Place in Chicago, Illinois. The Two Pierce Place asset, the last remaining asset owned in the Chicago office market, was sold in January 2022.
The following table shows lease expirations of our in-service office portfolio as of December 31, 2021 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 (%)
2022 34,295 6.4
2023 55,639 10.4
2024 59,025 11.0
2025 57,364 10.7
2026 59,308 11.0
2027 52,749 9.8
2028 49,937 9.3
2029 31,479 5.9
2030 21,991 4.1
2031 15,537 2.9
2032 20,950 3.9
2033 10,291 1.9
Thereafter 68,239 12.7
$ 536,804 100.0
Certain Restrictions Related to our Properties
As of December 31, 2021, no properties were held as collateral for debt, nor were any subject to any underlying 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, 2021.
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Index to Financial Statements