Parkway Announces Over 1.0 Million Square Feet Of Second Quarter And Third Quarter To-Date Leasing Activity
ORLANDO, Fla., July 30, 2013 /PRNewswire/ -- Parkway Properties, Inc. (NYSE: PKY) announced today that during the second and third quarter to date of 2013, Parkway has signed over 1.0 million square feet of leases. The leases signed during the second quarter represented 578,000 square feet at an average rent per square foot of $28.13 and at an average cost of $4.78 per square foot per year. This leasing activity consisted of 95,000 square feet of new leases at an average rent per square foot of $23.39 and at an average cost of $6.04 per square foot per year, 84,000 square feet of expansion leases at an average rent per square foot of $28.46 and at an average cost of $5.13 per square foot per year, and 399,000 square feet of renewal leases at an average rent per square foot of $29.18 and at an average cost of $4.35 per square foot per year. The rental rate for renewal leases represented on average a 6.5% rate increase from the expiring rate. Additionally, since the end of the second quarter, Parkway has signed a total of 452,000 square feet of leases as of July 29, 2013.
James R. Heistand, Parkway's President and Chief Executive Officer, stated, "We have made significant progress over the past four months executing the leasing strategies we have implemented at our properties. We believe that this leasing velocity further validates both the quality of our assets and the growth dynamics existing in the submarkets we have targeted, particularly at our recently acquired core-plus and value-add investments. Nearly 400,000 square feet of these executed leases have been at assets acquired during or since the fourth quarter of 2012."
Listed below are certain significant signed leases:
Second Quarter 2013
- Phoenix Tower (Houston) – Permian Mud Service, Inc. signed a 105,000 square foot, 65-month renewal commencing March 1, 2018, and a 25,000 square foot, 10-year expansion commencing October 12, 2013. As a result of this lease and other leasing activity since acquisition, Phoenix Tower is now approximately 87.2% leased compared to occupancy of 83.6% at acquisition on December 20, 2012.
- Tower Place 200 (Atlanta) – Board of Regents of the University System of Georgia signed a 61,000 square foot, 12-month renewal that commenced July 1, 2013.
- Hayden Ferry Lakeside II (Phoenix) – LifeLock, Inc. signed a 51,000 square foot, 140-month renewal that commenced May 21, 2013, and a 23,000 square foot, 133-month expansion commencing January 1, 2014. Additionally, Fidelity National Title Insurance Company signed a 24,000 square foot, 74-month renewal that commenced May 1, 2013.
- Deerwood North (Jacksonville) – TD Auto Finance LLC signed a 29,000 square foot, 18-month renewal commencing August 1, 2014.
- Tempe Gateway (Phoenix) – Three separate tenants signed leases totaling 15,000 square feet commencing throughout the fourth quarter 2013. As a result of these leases and other leasing activity, Tempe Gateway is now approximately 85.9% leased compared to occupancy of 77.0% at acquisition on December 21, 2012.
Subsequent to Second Quarter 2013
- Capital City Plaza (Atlanta) – PulteGroup, Inc. signed a 101,000 square foot, 195-month new lease commencing June 1, 2014. Additionally, Blue Cross and Blue Shield of Georgia, Inc. signed a 29,000 square foot, 93-month expansion commencing October 1, 2013. As a result of these leases and other leasing activity, Capital City Plaza is now approximately 98.8% leased.
- Tower Place 200 (Atlanta) – Georgia State University Foundation, Inc. signed a 61,000 square foot renewal commencing July 1, 2014, a 37,000 square foot expansion commencing during the third quarter of 2013, a 14,000 square foot expansion commencing October 1, 2013, and a 23,000 square foot expansion commencing January 1, 2015. The entire 135,000 square foot premises will expire on November 30, 2023. As a result of this lease and other leasing activity since acquisition, Tower Place 200 is now approximately 92.4% leased compared to occupancy of 82.8% at acquisition on January 17, 2013.
- Hearst Tower (Charlotte) – PricewaterhouseCoopers LLP signed a 64,000 square foot, 180-month renewal commencing June 1, 2014.
- Bank of America Center (Orlando) – Bank of America, N.A. signed a 36,000 square foot, 91-month renewal commencing January 1, 2014.
- Lakewood II (Atlanta) – Colgate–Palmolive Company signed a 30,000 square foot, 26-month renewal commencing June 1, 2014.
Leases signed but not yet commenced are generally subject to customary conditions to commencement.
About Parkway Properties
Parkway Properties, Inc. is a fully integrated, self-administered and self-managed real estate investment trust specializing in the acquisition, ownership and management of quality office properties in higher growth submarkets in the Sunbelt region of the United States. Parkway owns or has an interest in 45 office properties located in eight states with an aggregate of approximately 13.0 million square feet at April 1, 2013. Parkway also offers fee-based real estate services which manage and/or lease approximately 11.8 million square feet for third parties as of April 1, 2013. Additional information about Parkway is available on the Company's website at www.pky.com.
Forward Looking Statement
Certain statements in this press release that are not in the present or past tense or that discuss the Company's expectations (including any use of the words "anticipate," "assume," "believe," "estimate," "expect," "forecast," "guidance," "intend," "may," "might," "outlook," "project", "should" or similar expressions) are forward-looking statements within the meaning of the federal securities laws and as such are based upon the Company's current beliefs as to the outcome and timing of future events. There can be no assurance that actual future developments affecting the Company will be those anticipated by the Company. Examples of forward-looking statements include projected net operating income, cap rates, internal rates of return, future dividend payment rates, forecasts of FFO accretion, projected capital improvements, expected sources of financing, expectations as to the timing of closing of acquisitions, dispositions and other potential transactions, estimates of market rental rates, the expected operating performance of anticipated near-term acquisitions and descriptions relating to these expectations. These forward-looking statements involve risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the real estate industry and in performance of the financial markets; the demand for and market acceptance of the Company's properties for rental purposes; the ability of the Company to enter into new leases or renew leases on favorable terms; the amount and growth of the Company's expenses; tenant financial difficulties and general economic conditions, including interest rates, as well as economic conditions in those areas where the Company owns properties; risks associated with joint venture partners; risks associated with the ownership and development of real property; termination of property management contracts; the bankruptcy or insolvency of companies for which Parkway provides property management services or the sale of these properties; the outcome of claims and litigation involving or affecting the Company; the ability to satisfy conditions necessary to close pending transactions and the ability to successfully integrate pending transactions; applicable regulatory changes; and other risks and uncertainties detailed from time to time in the Company's SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company's business, financial condition, liquidity, cash flows and financial results could differ materially from those expressed in the Company's forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict the occurrence of those matters or the manner in which they may affect us. The Company does not undertake to update forward-looking statements except as may be required by law.
Thomas E. Blalock
Vice President of Investor Relations
SOURCE Parkway Properties, Inc.