Highwoods Reports Strong Leasing and Non-Core Asset Sales
News related to:Highwoods Properties, Inc · 2 min read
Highwoods Properties, Inc., a leading real estate investment trust, has reported strong leasing activity and successful non-core asset disposals in the third quarter of 2026. According to the company, 1.1 million square feet of second-generation leases have been signed, including over 200,000 square feet of new leases. This leasing activity is part of the company's ongoing efforts to enhance occupancy and drive up rents while reducing near-term lease rollover risk.
Ted Klinck, President and CEO of Highwoods Properties, commented, "Our leasing activity continues to be robust, with over 1.1 million square feet of second-generation deals signed in the first two months of the quarter. We have a healthy leasing pipeline of both new and renewal prospects, which is encouraging."
The company has also completed the sale of non-core assets, generating $74 million in proceeds. Specifically, Highwoods sold six office buildings in the Innsbrook submarket of Richmond, encompassing 472,000 square feet, and a 118,000 square-foot office building in Century Center in Atlanta. These sales bring the total number of non-core office buildings sold in 2026 to 11, covering 1.461 million square feet and 10 acres of joint venture-owned development land. The sales are expected to generate $30.1 million of annual cash net operating income and $30.3 million of annual GAAP net operating income in 2026.
Klinck added, "The lack of new supply under construction and the limited availability of high-quality space in our best business districts (BBDs) continue to support our leasing and disposition activities. We are well-positioned to capitalize on these market conditions."
Highwoods Properties, Inc., headquartered in Raleigh, is focused on creating environments and experiences that inspire its customers and their teams to achieve more. The company's vision is to be a leader in the evolution of commercial real estate, benefiting its customers, communities, and shareholders.
The company's strong leasing and disposition activities reflect its strategic focus on optimizing its portfolio and enhancing shareholder value. With the current market conditions, Highwoods is well-placed to continue driving growth and improving its financial performance.