Parkway Properties Announces Leasing Update and Current Portfolio Occupancy

JACKSON, Miss., July 15 /PRNewswire-FirstCall/ -- Parkway Properties, Inc. (NYSE: PKY) announced today the signing of a 104,000 square foot renewal with The Travelers Indemnity Company ("Travelers") at Carmel Crossing in Charlotte, North Carolina, and a 29,000 square foot new lease with DeVry Inc. ("DeVry") at Mesa Corporate Center in Phoenix, Arizona.  With this and other leasing activity outlined below, the Company's total portfolio was 86.1% occupied and 87.1% leased as of July 15, 2010.

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Travelers extended its lease for an additional five years beyond its prior expiration date, or through July 31, 2016.  As part of the renewal, Travelers contracted by approximately 1,000 square feet.  Carmel Crossing is a three-building, 326,000 square foot office complex located in the 51 Perimeter submarket of Charlotte and is owned by RubiconPark I, LLC, a joint venture between Parkway Properties, LP and Rubicon U.S. REIT.

DeVry signed an 11-year new lease for approximately 29,000 square feet, which is scheduled to commence in the third quarter of 2010.  This new lease with DeVry will increase the occupancy of Mesa Corporate Center to 96.7% upon commencement.  Mesa Corporate Center is a 105,000 square foot office property located in the Mesa submarket of Phoenix, Arizona.

Additionally, today, the lease for Combined Insurance Company of America ("Combined Insurance") commenced on 99,000 square feet at the 111 East Wacker Building, a one million square foot office property located in the Chicago CBD.  This lease was previously announced on January 14, 2010, and will have an 11-year term.

William R. Flatt, Chief Operating Officer of Parkway, stated, "We are excited about the decision of these two firms, Travelers and DeVry, to make long-term commitments to Parkway buildings.  The Travelers' renewal reduces our near-term exposure in Charlotte, and we were able to complete the DeVry lease with minimal capital costs.  Additionally, the commencement of Combined Insurance serves as a meaningful increase to the Company's overall occupancy."

Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 64 office properties located in 11 states with an aggregate of approximately 13.2 million square feet of leasable space as of July 15, 2010.  Included in the portfolio are 21 properties totaling 3.9 million square feet that are owned jointly with other investors, representing 29.3% of the portfolio.  Fee-based real estate services are offered through the Company's wholly-owned subsidiary, Parkway Realty Services, which also manages and/or leases approximately 2.8 million square feet for third-party owners at July 15, 2010.

Parkway Properties, Inc.'s press releases and additional information about the Company are available at www.pky.com.

SOURCE Parkway Properties, Inc.