# Highwoods Properties, Inc > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/fi/companies/Highwoods Properties, Inc). ## Overview Highwoods Properties, Inc. is a publicly traded REIT that owns, develops, acquires, leases and manages office properties, with a portfolio concentrated in best business districts across the Southeast and Dallas. The company is built around fully integrated, in-house management of high-quality workplaces that are designed to attract and retain tenants in talent-driven markets. ## Products & services • Office property ownership and leasing • Office property development and redevelopment • Acquisitions and dispositions of office assets • Property management, maintenance and customer service • Tenant improvements, build-to-suit and space modifications - **Office leasing** (70%) — Rental of office space in Highwoods-owned buildings, including renewals and new leases. - **Property management and recoveries** (15%) — Operating services and cost recoveries tied to managing and maintaining the portfolio. - **Development and redevelopment** (10%) — New office development and repositioning projects that create future rental income. - **Asset sales and other revenues** (5%) — Disposition activity and miscellaneous property-related income. - Office property ownership and leasing - Office property development and redevelopment - Acquisitions and dispositions of office assets - Property management, maintenance and customer service - Tenant improvements, build-to-suit and space modifications ## Customers Highwoods serves office tenants that want commute-worthy, amenitized workplaces in strong business districts, rather than commodity suburban office space. Its customer base is driven by companies that need quality space to attract and retain employees, including professional services, financial, healthcare, technology and other office users. The company also has exposure to federal government leasing requirements through some of its contracts. - **Corporate office tenants** (primary) — Businesses leasing office space for headquarters, regional offices and administrative functions in Highwoods' core markets. - **Professional services and knowledge workers** (primary) — Law, consulting, finance and similar users that value premium locations and workplace quality. - **Healthcare, technology and other office users** (secondary) — Specialized office occupiers that need modern, flexible space and strong market access. - **Federal government-related tenants** (secondary) — Government or government-adjacent occupiers subject to compliance and contracting requirements. - Office tenants seeking high-quality space in best business districts - Companies prioritizing employee attraction, retention and workplace experience - Professional services and corporate users needing flexible office layouts - Federal government tenants and contractors in certain leased properties - Existing tenants renewing leases or expanding within the portfolio ## Geography Highwoods is concentrated in the Southeast and Texas, with core markets in Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. The company is headquartered in Raleigh and runs division offices in Atlanta, Nashville, Orlando, Raleigh and Tampa, with planned expansion of local offices into Charlotte and Dallas over time. This footprint matters because leasing demand, occupancy and asset recycling are driven by local office employment and market-specific conditions. - Core markets are Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa - Headquartered in Raleigh, with key operating and corporate functions based there - Division offices in Atlanta, Nashville, Orlando, Raleigh and Tampa support local execution - Charlotte and Dallas are planned long-term division office markets - Business is concentrated in U.S. office markets; no international footprint disclosed ## Strategy Highwoods' strategy is to own and operate high-quality office buildings in best business districts, while recycling non-core assets into better properties in its core markets. Management is also focused on maintaining a strong balance sheet, using in-house operating capabilities to improve tenant service and preserving flexibility to buy and sell assets through the cycle. - **Portfolio upgrade through acquisitions, development and dispositions** (short-term) — Improves average asset quality and long-term resilience while reallocating capital away from non-core properties. - **Strengthen in-service portfolio performance** (medium-term) — Higher occupancy, better leasing and stronger tenant retention support recurring rental income. - **Maintain local market expertise and operating control** (medium-term) — In-house management improves responsiveness, cost control and customer service in targeted markets. - Own high-quality office buildings in best business districts - Recycle non-core assets into better office properties - Use acquisitions and development to upgrade portfolio quality - Maintain a strong balance sheet for cycle flexibility - Leverage fully integrated in-house leasing and management ## Risks Highwoods is exposed to structural office demand pressure, especially from work-from-home adoption and weaker office employment in its markets. Its results also depend on successful leasing, acquisition execution, asset valuation and compliance with federal contractor rules, while cyber and IT disruptions could impair operations and tenant service. - **Structural decline in office demand from remote work** [high] — If tenants need less space or downsize, leasing demand and renewal rates can fall across the portfolio. - **Local economic weakness in core markets** [high] — Higher unemployment or slower office job growth can reduce occupancy and rental rates. - **Acquisition and development execution risk** [medium] — New assets may not lease as expected and renovation or development costs can exceed estimates. - **Federal contractor compliance risk** [medium] — Non-compliance could lead to fines, contract losses or restrictions on future government leasing. - **Cybersecurity and IT disruption** [medium] — Breaches or outages could affect building systems, customer service and internal operations. - Work-from-home trends can reduce long-term office demand - Weak local office employment can lower occupancy and rents - Acquisitions and developments may underperform or cost more than planned - Federal contractor compliance failures could cause penalties or lost revenue - Cyberattacks or IT outages could disrupt building operations and customer service ## Accounting The most important accounting judgments are valuation-based: purchase price allocation for acquisitions, impairment testing for real estate assets, and credit loss estimates on lease receivables. Because Highwoods also buys, sells and develops properties, reported results can be affected by timing of dispositions, development in-service dates and fair value adjustments on underperforming assets. - **Purchase price allocation for acquisitions** — Affects asset basis, future depreciation and reported gains or losses on acquisition - **Real estate impairment testing** — Can create material non-cash charges, as seen with the Century Center impairment - **Credit losses on lease receivables** — Affects rental revenue and operating results - **Disposition and development timing** — Can distort same-property trends and near-term revenue growth - Acquisition accounting relies on fair value estimates for real estate assets and liabilities - Impairment charges can arise when non-core or out-of-service assets lose value - Credit loss estimates affect lease receivables and reported rental income quality - Disposition timing changes revenue and comparability across periods - Development projects create timing differences between spend and in-service revenue --- *Last updated: 2026-09-24T11:32:45.913632+00:00*