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HIW - Highwoods Properties Inc News Story

$43.84 -0.2  -0.5%

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Large Cap
Market Cap £3.38bn
Enterprise Value £5.64bn
Revenue £547.8m
Position in Universe 1446th / 7397

Highwoods to Develop GlenLake III in Raleigh

Mon 8th November, 2021 9:15pm
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$94 Million Anticipated Total Investment
205,000 Square Feet of Office, 16% Pre-Leased
13,000 Square Feet of Amenity Retail

RALEIGH, N.C., Nov. 08, 2021 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc.
(NYSE:HIW) will begin construction of GlenLake III in Raleigh, a LEED and
Fitwel-certified, multi-customer development that will encompass 218,000
square feet, including 205,000 square feet of office space and 13,000 square
feet of retail and restaurant space.

The Company’s projected investment is $94.4 million, including the value of
existing Company-owned land. Construction is scheduled to begin in the fourth
quarter of 2021, with targeted completion in the third quarter of 2023 and
projected stabilization in the first quarter of 2026. Highwoods has pre-leased
16% of the office portion to McKim & Creed, a national engineering and
surveying firm based in Raleigh, for its corporate headquarters. This
mixed-use project is the latest example of Highwoods work-placemaking

Highwoods has developed five office buildings from 2001 through 2020 in
GlenLake encompassing 732,000 square feet that are a combined 98% occupied.
The most recent project, GlenLake VII, is a 125,000 square foot, 100% occupied
office building that was placed in service in the first quarter of 2021, three
quarters ahead of the original projected stabilization date.

Ted Klinck, President and CEO of Highwoods, stated “Our GlenLake development
in Raleigh’s Glenwood BBD is a well-established and highly-desirable infill
location with significant demand for high-quality office space, as
demonstrated by the 98% occupancy rate across our existing 732,000 square foot
in-service portfolio. Our two most recent developments in GlenLake were both
started with partial pre-leasing from anchor customers and are now 100%

We are excited McKim & Creed, a long-standing and thriving Raleigh company and
new customer for Highwoods, has chosen GlenLake III for its corporate
headquarters, and we look forward to building a long-lasting relationship with
them. Our Raleigh team has done an excellent job with our GlenLake properties
and this new lease illustrates the healthy demand we’re seeing at GlenLake
and across the Raleigh market.”

John Lucey, PE, CEO and Board Chair of McKim and Creed, said “Working with
the Highwoods team has made this an easy and seamless process for our firm.
This new location will provide all of our employee-owners with a modern and
collaborative working environment. It will offer us a pleasant workspace to
enhance our enjoyable work culture, help us attract new talent and accommodate
our surveying team's unique storage and access needs.”

About McKim & Creed

McKim & Creed is an employee-owned engineering and surveying firm with more
700 staff members in offices throughout the U.S. McKim & Creed is ranked among
the top 150 design firms and environmental firms in the U.S. by Engineering
News-Record. McKim & Creed specializes in airborne and mobile LiDAR/scanning;
unmanned aerial systems; subsurface utility engineering; hydrographic and
conventional surveying services; civil, environmental, mechanical,
instrumentation, plumbing, and structural engineering; and industrial
design-build services for the energy, transportation, government, land
development, healthcare, industrial and water industries. www.mckimcreed.com.

About Highwoods

Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded
(NYSE:HIW) real estate investment trust (“REIT”) and a member of the S&P
MidCap 400 Index. The Company is a fully-integrated office REIT that owns,
develops, acquires, leases and manages properties primarily in the best
business districts (BBDs) of Atlanta, Charlotte, Nashville, Orlando,
Pittsburgh, Raleigh, Richmond and Tampa.  For more information about
Highwoods, please visit our website at www.highwoods.com.

Forward-Looking Statements

Some of the information in this press release may contain forward-looking
statements. Such statements include, in particular, statements about the
planned development of the building described above and anticipated total
investment, projected leasing activity and expected timing and impact of the
building to be developed. You can identify forward-looking statements by our
use of forward-looking terminology such as “may,” “will,”
“expect,” “anticipate,” “estimate,” “continue” or other
similar words. Although we believe that our plans, intentions and expectations
reflected in or suggested by such forward-looking statements are reasonable,
we cannot assure you that our plans, intentions or expectations will be

When considering such forward-looking statements, you should keep in mind
important factors that could cause our actual results to differ materially
from those contained in any forward-looking statement, including the
following: the extent to which the ongoing COVID-19 pandemic impacts our
financial condition, results of operations and cash flows depends on future
developments, which are highly uncertain and cannot be predicted with
confidence, including the scope, severity and duration of the pandemic and its
impact on the U.S. economy and potential changes in customer behavior that
could adversely affect the use of and demand for office space; the financial
condition of our customers could deteriorate or further worsen, which could be
further exacerbated by the COVID-19 pandemic; our assumptions regarding
potential losses related to customer financial difficulties due to the
COVID-19 pandemic could prove incorrect; counterparties under our debt
instruments, particularly our revolving credit facility, may attempt to avoid
their obligations thereunder, which, if successful, would reduce our available
liquidity; we may not be able to lease or re-lease second generation space,
defined as previously occupied space that becomes available for lease, quickly
or on as favorable terms as old leases; we may not be able to lease newly
constructed buildings as quickly or on as favorable terms as originally
anticipated; we may not be able to complete development, acquisition,
reinvestment, disposition or joint venture projects as quickly or on as
favorable terms as anticipated; development activity in our existing markets
could result in an excessive supply relative to customer demand; our markets
may suffer declines in economic and/or office employment growth; unanticipated
increases in interest rates could increase our debt service costs;
unanticipated increases in operating expenses could negatively impact our
operating results; natural disasters and climate change could have an adverse
impact on our cash flow and operating results; we may not be able to meet our
liquidity requirements or obtain capital on favorable terms to fund our
working capital needs and growth initiatives or repay or refinance outstanding
debt upon maturity; and the Company could lose key executive officers.

This list of risks and uncertainties, however, is not intended to be
exhaustive. You should also review the other cautionary statements we make in
“Risk Factors” set forth in our 2020 Annual Report on Form 10-K. Given
these uncertainties, you should not place undue reliance on forward-looking
statements. We undertake no obligation to publicly release the results of any
revisions to these forward-looking statements to reflect any future events or
circumstances or to reflect the occurrence of unanticipated events.

 Contact:  Brendan Maiorana                                   
           Executive Vice President of Finance and Treasurer  
           Highwoods Properties                               


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