Item 2. Properties
ITEM 2. PROPERTIES
Overview
As of December 31, 2022, we owned interests in 51 in-service office properties, with over two-thirds of our ALR generated from our properties located primarily in major U.S. Sunbelt markets . As of December 31, 2022 and 2021, our in-service portfolio was 86.7% and 85.5% 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 $555.3 million, or $38.46 per leased square foot, as of December 31, 2022 as compared with $536.8 million, or $36.81 per leased square foot, as of December 31, 2021. 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, 2022, increases to approximately $38.86 per leased square foot.
Property Statistics
The following table shows the geographic diversification of our in-service portfolio as of December 31, 2022:
Location Annualized
Lease Revenue
(in thousands) Rentable Square
Feet
(in thousands) Percentage of
Annualized
Lease Revenue (%) Percent Leased (%)
Atlanta $ 150,082 4,717 27.0 85.4
Dallas 105,775 3,524 19.1 82.0
Washington, D.C./Northern Virginia 67,353 1,620 12.1 79.4
Minneapolis 66,378 2,104 12.0 92.1
Orlando 57,756 1,764 10.4 95.3
New York 47,132 1,045 8.5 86.4
Boston 41,684 1,270 7.5 90.9
Other (1)
19,132 614 3.4 91.2
$ 555,292 16,658 100.0 86.7
(1) Includes 1430 Enclave Parkway and Enclave Place in Houston, Texas.
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Table of Contents
Index to Financial Statements
The following table shows lease expirations of our in-service office portfolio as of December 31, 2022 during each of the next twelve 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 (%)
2023 40,507 7.3
2024 70,434 12.7
2025 66,082 11.9
2026 59,821 10.8
2027 54,486 9.8
2028 66,743 12.0
2029 39,186 7.1
2030 24,224 4.4
2031 23,070 4.1
2032 22,391 4.0
2033 10,347 1.9
2034 15,581 2.8
Thereafter 62,420 11.2
$ 555,292 100.0
Certain Restrictions Related to our Properties
As of December 31, 2022, only 1180 Peachtree Street in Atlanta, Georgia was held as collateral for debt, and there were no properties subject to 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, 2022.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the is authoritative for anything you rely on.