HIW · 10-Q · 2026Q1 · Full report

Occupancy and Leasing Activity

HIGHWOODS PROPERTIES, INC. · 2026-04-28 · Importance 31 · Surprise 32

Occupancy in Highwoods' office portfolio ticked down slightly to 85.0% as of March 31, 2026 from 85.3% at December 31, 2025, and the company expects average occupancy of 85.5% to 86.5% for the remainder of 2026. The company focuses leasing efforts on renewing existing leases prior to expiration and on leasing second generation space; 923,604 rentable square feet of second generation office leases were signed in Q1 2026 (306,315 new; 617,289 renewals). Average lease term for all office leases signed in Q1 was 7.4 years, and GAAP rents under those leases averaged $39.45 per rentable square foot. Leasing activity in Q1 is a key driver of near-term revenue and the company links occupancy trends directly to office employment and economic growth in its BBD markets.

Key facts

• Second generation office leased space in Q1 2026: total 923,604 rentable square feet (306,315 new; 617,289 renewals).
• The Company expects average occupancy in its office portfolio to range from 85.5% to 86.5% for the remainder of 2026.
• Average term for second generation office leases signed in Q1 2026 was 7.4 years weighted by rentable square foot (8.6 years for new leases; 6.7 years for renewals).
• Occupancy in the office portfolio decreased from 85.3% as of December 31, 2025 to 85.0% as of March 31, 2026.

Impact estimates