HIGHWOODS PROPERTIES, INC., 10-Q filed on 10/27/2015
Quarterly Report
Document and Entity Information Document
9 Months Ended
Sep. 30, 2015
Oct. 20, 2015
Entity Information [Line Items]
 
 
Entity Registrant Name
HIGHWOODS PROPERTIES INC. 
 
Entity Central Index Key
0000921082 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2015 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q3 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
95,326,219 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Highwoods Realty Limited Partnership [Member]
 
 
Entity Information [Line Items]
 
 
Entity Registrant Name
HIGHWOODS REALTY LIMITED PARTNERSHIP 
 
Entity Central Index Key
0000941713 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Non-accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2015 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q3 
 
Amendment Flag
false 
 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Real estate assets, at cost:
 
 
Land
$ 460,111 
$ 384,301 
Buildings and tenant improvements
4,336,244 
3,807,315 
Development in process
157,100 
205,971 
Land held for development
71,997 
79,355 
Total real estate assets
5,025,452 
4,476,942 
Less-accumulated depreciation
(1,096,129)
(1,024,936)
Net real estate assets
3,929,323 
3,452,006 
Real estate and other assets, net, held for sale
2,629 
1,038 
Cash and cash equivalents
5,184 
8,832 
Restricted cash
19,310 
14,595 
Accounts receivable, net of allowance of $1,835 and $1,314, respectively
27,576 
48,557 
Mortgages and notes receivable, net of allowance of $362 and $275, respectively
2,132 
13,116 
Accrued straight-line rents receivable, net of allowance of $993 and $600, respectively
156,481 
142,037 
Investments in and advances to unconsolidated affiliates
20,674 
50,685 
Deferred financing and leasing costs, net of accumulated amortization of $123,463 and $112,804, respectively
255,849 
228,768 
Prepaid expenses and other assets, net of accumulated amortization of $15,697 and $14,259, respectively
43,537 
39,489 
Total Assets
4,462,695 
3,999,123 
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital:
 
 
Mortgages and notes payable
2,478,753 
2,071,389 
Accounts payable, accrued expenses and other liabilities
245,953 
237,633 
Financing obligation
7,402 
8,962 
Total Liabilities
2,732,108 
2,317,984 
Commitments and contingencies
   
   
Noncontrolling interests in the Operating Partnership
112,768 
130,048 
Equity/Capital:
 
 
Preferred Stock, $.01 par value, 50,000,000 authorized shares; 8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 29,050 and 29,060 shares issued and outstanding, respectively
29,050 
29,060 
Common Stock, $.01 par value, 200,000,000 authorized shares; 95,329,758 and 92,907,310 shares issued and outstanding, respectively
953 
929 
Additional paid-in capital
2,579,318 
2,464,275 
Distributions in excess of net income available for common stockholders
(1,002,879)
(957,370)
Accumulated other comprehensive loss
(6,610)
(3,912)
Total Stockholders’ Equity
1,599,832 
1,532,982 
Noncontrolling interests in consolidated affiliates
17,987 
18,109 
Total Equity/Capital
1,617,819 
1,551,091 
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital
4,462,695 
3,999,123 
Highwoods Realty Limited Partnership [Member]
 
 
Real estate assets, at cost:
 
 
Land
460,111 
384,301 
Buildings and tenant improvements
4,336,244 
3,807,315 
Development in process
157,100 
205,971 
Land held for development
71,997 
79,355 
Total real estate assets
5,025,452 
4,476,942 
Less-accumulated depreciation
(1,096,129)
(1,024,936)
Net real estate assets
3,929,323 
3,452,006 
Real estate and other assets, net, held for sale
2,629 
1,038 
Cash and cash equivalents
5,184 
8,938 
Restricted cash
19,310 
14,595 
Accounts receivable, net of allowance of $1,835 and $1,314, respectively
27,576 
48,557 
Mortgages and notes receivable, net of allowance of $362 and $275, respectively
2,132 
13,116 
Accrued straight-line rents receivable, net of allowance of $993 and $600, respectively
156,481 
142,037 
Investments in and advances to unconsolidated affiliates
20,674 
50,685 
Deferred financing and leasing costs, net of accumulated amortization of $123,463 and $112,804, respectively
255,849 
228,768 
Prepaid expenses and other assets, net of accumulated amortization of $15,697 and $14,259, respectively
43,537 
39,489 
Total Assets
4,462,695 
3,999,229 
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital:
 
 
Mortgages and notes payable
2,478,753 
2,071,389 
Accounts payable, accrued expenses and other liabilities
245,953 
237,547 
Financing obligation
7,402 
8,962 
Total Liabilities
2,732,108 
2,317,898 
Commitments and contingencies
   
   
Redeemable Operating Partnership Units:
 
 
Common Units, 2,910,135 and 2,936,955 outstanding, respectively
112,768 
130,048 
Series A Preferred Units (liquidation preference $1,000 per unit), 29,050 and 29,060 units issued and outstanding, respectively
29,050 
29,060 
Total Redeemable Operating Partnership Units
141,818 
159,108 
Equity/Capital:
 
 
General partner Common Units, 978,311 and 954,355 outstanding, respectively
15,771 
15,078 
Limited partner Common Units, 93,942,638 and 91,544,146 outstanding, respectively
1,561,621 
1,492,948 
Accumulated other comprehensive loss
(6,610)
(3,912)
Noncontrolling interests in consolidated affiliates
17,987 
18,109 
Total Equity/Capital
1,588,769 
1,522,223 
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital
$ 4,462,695 
$ 3,999,229 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Assets:
 
 
Accounts receivable allowance
$ 1,835 
$ 1,314 
Mortgages and notes receivable allowance
362 
275 
Accrued straight-line rents receivable allowance
993 
600 
Deferred financing and leasing costs, accumulated amortization
123,463 
112,804 
Prepaid expenses and other assets, accumulated amortization
15,697 
14,259 
Equity/Capital:
 
 
Series A Preferred Stock, dividend rate percentage (in hundredths)
8.625% 
8.625% 
Series A Preferred Stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Series A Preferred Stock, authorized shares (in shares)
50,000,000 
50,000,000 
Series A Preferred Stock, liquidation preference (in dollars per share)
$ 1,000 
$ 1,000 
Series A Preferred Stock, shares issued (in shares)
29,050 
29,060 
Series A Preferred Stock, shares outstanding (in shares)
29,050 
29,060 
Common Stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Common Stock, authorized shares (in shares)
200,000,000 
200,000,000 
Common Stock, shares issued (in shares)
95,329,758 
92,907,310 
Common Stock, shares outstanding (in shares)
95,329,758 
92,907,310 
Highwoods Realty Limited Partnership [Member]
 
 
Assets:
 
 
Accounts receivable allowance
1,835 
1,314 
Mortgages and notes receivable allowance
362 
275 
Accrued straight-line rents receivable allowance
993 
600 
Deferred financing and leasing costs, accumulated amortization
123,463 
112,804 
Prepaid expenses and other assets, accumulated amortization
$ 15,697 
$ 14,259 
Redeemable Operating Partnership Units: [Abstract]
 
 
Redeemable Common Units outstanding (in shares)
2,910,135 
2,936,955 
Series A Preferred Units, liquidation preference (in dollars per share)
$ 1,000 
$ 1,000 
Series A Preferred Units, issued (in shares)
29,050 
29,060 
Series A Preferred Units, outstanding (in shares)
29,050 
29,060 
Common Units: [Abstract]
 
 
General partners' capital account, units outstanding (in shares)
978,311 
954,355 
Limited partners' capital account, units outstanding (in shares)
93,942,638 
91,544,146 
Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Rental and other revenues
$ 163,736 
$ 152,629 
$ 482,182 
$ 453,804 
Operating expenses:
 
 
 
 
Rental property and other expenses
59,758 
57,383 
174,549 
169,048 
Depreciation and amortization
54,652 
48,287 
156,200 
146,895 
Impairments of real estate assets
0 
0 
0 
588 
General and administrative
9,182 
7,526 
29,511 
26,973 
Total operating expenses
123,592 
113,196 
360,260 
343,504 
Interest expense:
 
 
 
 
Contractual
20,484 
20,962 
61,783 
62,352 
Amortization of deferred financing costs
873 
819 
2,501 
2,270 
Financing obligation
155 
567 
653 
301 
Total interest expense
21,512 
22,348 
64,937 
64,923 
Other income:
 
 
 
 
Interest and other income
1,038 
1,054 
3,475 
3,863 
Losses on debt extinguishment
0 
(326)
(220)
(308)
Total other income
1,038 
728 
3,255 
3,555 
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
19,670 
17,813 
60,240 
48,932 
Gains on disposition of property
7,012 
36,238 
10,581 
42,185 
Gain on disposition of investment in unconsolidated affiliate
4,155 
0 
4,155 
0 
Equity in earnings of unconsolidated affiliates
780 
248 
4,367 
886 
Income from continuing operations
31,617 
54,299 
79,343 
92,003 
Discontinued operations:
 
 
 
 
Net gains on disposition of discontinued operations
0 
0 
0 
384 
Total discontinued operations
0 
0 
0 
384 
Net income
31,617 
54,299 
79,343 
92,387 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(918)
(1,673)
(2,296)
(2,813)
Net (income) attributable to noncontrolling interests in consolidated affiliates
(324)
(291)
(948)
(1,152)
Dividends on Preferred Stock
(626)
(627)
(1,879)
(1,881)
Net income available for common stockholders
29,749 
51,708 
74,220 
86,541 
Earnings per Common Share – basic:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.31 
$ 0.57 
$ 0.79 
$ 0.96 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
Net income available for common stockholders (in dollars per share)
$ 0.31 
$ 0.57 
$ 0.79 
$ 0.96 
Weighted average Common Shares outstanding - basic (in shares)
94,693 
90,668 
93,996 
90,299 
Earnings per Common Share - diluted:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.31 
$ 0.57 
$ 0.79 
$ 0.96 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
Net income available for common stockholders (in dollars per share)
$ 0.31 
$ 0.57 
$ 0.79 
$ 0.96 
Weighted average Common Shares outstanding - diluted (in shares)
97,661 1 2
93,723 1 2
97,003 1 2
93,358 1 2
Dividends declared per Common Share (in dollars per share)
$ 0.425 
$ 0.425 
$ 1.275 
$ 1.275 
Net income available for common stockholders:
 
 
 
 
Income from continuing operations available for common stockholders
29,749 
51,708 
74,220 
86,169 
Income from discontinued operations available for common stockholders
0 
0 
0 
372 
Net income available for common stockholders
29,749 
51,708 
74,220 
86,541 
Highwoods Realty Limited Partnership [Member]
 
 
 
 
Rental and other revenues
163,736 
152,629 
482,182 
453,804 
Operating expenses:
 
 
 
 
Rental property and other expenses
59,758 
57,383 
174,549 
169,015 
Depreciation and amortization
54,652 
48,287 
156,200 
146,895 
Impairments of real estate assets
0 
0 
0 
588 
General and administrative
9,182 
7,526 
29,511 
27,006 
Total operating expenses
123,592 
113,196 
360,260 
343,504 
Interest expense:
 
 
 
 
Contractual
20,484 
20,962 
61,783 
62,352 
Amortization of deferred financing costs
873 
819 
2,501 
2,270 
Financing obligation
155 
567 
653 
301 
Total interest expense
21,512 
22,348 
64,937 
64,923 
Other income:
 
 
 
 
Interest and other income
1,038 
1,054 
3,475 
3,863 
Losses on debt extinguishment
0 
(326)
(220)
(308)
Total other income
1,038 
728 
3,255 
3,555 
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
19,670 
17,813 
60,240 
48,932 
Gains on disposition of property
7,012 
36,238 
10,581 
42,185 
Gain on disposition of investment in unconsolidated affiliate
4,155 
0 
4,155 
0 
Equity in earnings of unconsolidated affiliates
780 
248 
4,367 
886 
Income from continuing operations
31,617 
54,299 
79,343 
92,003 
Discontinued operations:
 
 
 
 
Net gains on disposition of discontinued operations
0 
0 
0 
384 
Total discontinued operations
0 
0 
0 
384 
Net income
31,617 
54,299 
79,343 
92,387 
Net (income) attributable to noncontrolling interests in consolidated affiliates
(324)
(291)
(948)
(1,152)
Distributions on Preferred Units
(626)
(627)
(1,879)
(1,881)
Net income available for common unitholders
30,667 
53,381 
76,516 
89,354 
Earnings per Common Unit - basic:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.32 
$ 0.57 
$ 0.79 
$ 0.96 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
Net income available for common unitholders (in dollars per share)
$ 0.32 
$ 0.57 
$ 0.79 
$ 0.96 
Weighted average Common Units outstanding - basic (in shares)
97,194 
93,196 
96,505 
92,828 
Earnings per Common Unit - diluted:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.32 
$ 0.57 
$ 0.79 
$ 0.96 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
Net income available for common unitholders (in dollars per share)
$ 0.32 
$ 0.57 
$ 0.79 
$ 0.96 
Weighted average Common Units outstanding - diluted (in shares)
97,252 2 3
93,314 2 3
96,594 2 3
92,949 2 3
Distributions declared per Common Unit (in dollars per unit)
$ 0.425 
$ 0.425 
$ 1.275 
$ 1.275 
Net income available for common unitholders:
 
 
 
 
Income from continuing operations available for common unitholders
30,667 
53,381 
76,516 
88,970 
Income from discontinued operations available for common unitholders
0 
0 
0 
384 
Net income available for common unitholders
$ 30,667 
$ 53,381 
$ 76,516 
$ 89,354 
Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Comprehensive income:
 
 
 
 
Net income
$ 31,617 
$ 54,299 
$ 79,343 
$ 92,387 
Other comprehensive income/(loss):
 
 
 
 
Unrealized gains/(losses) on tax increment financing bond
(7)
23 
187 
293 
Unrealized gains/(losses) on cash flow hedges
(3,021)
913 
(5,666)
(3,337)
Amortization of cash flow hedges
932 
952 
2,781 
2,824 
Total other comprehensive income/(loss)
(2,096)
1,888 
(2,698)
(220)
Total comprehensive income
29,521 
56,187 
76,645 
92,167 
Less-comprehensive (income) attributable to noncontrolling interests
(1,242)
(1,964)
(3,244)
(3,965)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders
28,279 
54,223 
73,401 
88,202 
Highwoods Realty Limited Partnership [Member]
 
 
 
 
Comprehensive income:
 
 
 
 
Net income
31,617 
54,299 
79,343 
92,387 
Other comprehensive income/(loss):
 
 
 
 
Unrealized gains/(losses) on tax increment financing bond
(7)
23 
187 
293 
Unrealized gains/(losses) on cash flow hedges
(3,021)
913 
(5,666)
(3,337)
Amortization of cash flow hedges
932 
952 
2,781 
2,824 
Total other comprehensive income/(loss)
(2,096)
1,888 
(2,698)
(220)
Total comprehensive income
29,521 
56,187 
76,645 
92,167 
Less-comprehensive (income) attributable to noncontrolling interests
(324)
(291)
(948)
(1,152)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders
$ 29,197 
$ 55,896 
$ 75,697 
$ 91,015 
Consolidated Statements of Equity (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Highwoods Realty Limited Partnership [Member]
Common Stock [Member]
Series A Cumulative Redeemable Preferred Shares [Member]
General Partners' Common Units [Member]
Highwoods Realty Limited Partnership [Member]
Limited Partners' Common Units [Member]
Highwoods Realty Limited Partnership [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Highwoods Realty Limited Partnership [Member]
Noncontrolling Interests in Consolidated Affiliates [Member]
Noncontrolling Interests in Consolidated Affiliates [Member]
Highwoods Realty Limited Partnership [Member]
Distributions in Excess of Net Income Available for Common Stockholders [Member]
Balance at Dec. 31, 2013
$ 1,507,467 
$ 1,478,562 
$ 899 
$ 29,077 
$ 14,596 
$ 1,445,181 
$ 2,370,368 
$ (2,611)
$ (2,611)
$ 21,396 
$ 21,396 
$ (911,662)
Balance (in shares) at Dec. 31, 2013
 
 
89,920,915 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Issuances of Common Units, net of issuance costs and tax withholdings
 
45,922 
 
 
459 
45,463 
 
 
0 
 
0 
 
Redemptions of Common Units
 
(93)
 
 
(1)
(92)
 
 
0 
 
0 
 
Distributions paid on Common Units
 
(118,261)
 
 
(1,183)
(117,078)
 
 
0 
 
0 
 
Distributions paid on Preferred Units
 
(1,881)
 
 
(19)
(1,862)
 
 
0 
 
0 
 
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares
 
 
1,175,191 
 
 
 
 
 
 
 
 
 
Issuances of Common Stock, net of issuance costs and tax withholdings
45,922 
 
12 
0 
 
 
45,910 
0 
 
0 
 
0 
Conversions of Common Units to Common Stock - Shares
 
 
4,417 
 
 
 
 
 
 
 
 
 
Conversions of Common Units to Common Stock
162 
 
0 
0 
 
 
162 
0 
 
0 
 
0 
Dividends on Common Stock
(115,037)
 
0 
0 
 
 
0 
0 
 
0 
 
(115,037)
Dividends on Preferred Stock
(1,881)
 
0 
0 
 
 
0 
0 
 
0 
 
(1,881)
Adjustment of noncontrolling interests in the Operating Partnership to fair value
(8,955)
 
0 
0 
 
 
(8,955)
0 
 
0 
 
0 
Distributions to noncontrolling interests in consolidated affiliates
(940)
(940)
0 
0 
0 
0 
0 
0 
0 
(940)
(940)
0 
Issuances of restricted stock - shares
 
 
169,501 
 
 
 
 
 
 
 
 
 
Issuances of restricted stock
0 
 
0 
0 
 
 
0 
0 
 
0 
 
0 
Share-based compensation expense, net of forfeitures
6,179 
6,179 
2 
0 
62 
6,117 
6,177 
0 
0 
0 
0 
0 
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
 
(8,333)
 
 
(83)
(8,250)
 
 
0 
 
0 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(2,813)
 
0 
0 
 
 
0 
0 
 
0 
 
(2,813)
Net (income) attributable to noncontrolling interests in consolidated affiliates
0 
0 
0 
0 
(12)
(1,140)
0 
0 
0 
1,152 
1,152 
(1,152)
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
92,387 
92,387 
0 
0 
924 
91,463 
0 
0 
0 
0 
0 
92,387 
Other comprehensive loss
(220)
(220)
0 
0 
0 
0 
0 
(220)
(220)
0 
0 
0 
Total comprehensive income
92,167 
92,167 
 
 
 
 
 
 
 
 
 
 
Balance at Sep. 30, 2014
1,522,271 
1,493,322 
913 
29,077 
14,743 
1,459,802 
2,413,662 
(2,831)
(2,831)
21,608 
21,608 
(940,158)
Balance (in shares) at Sep. 30, 2014
 
 
91,270,024 
 
 
 
 
 
 
 
 
 
Balance at Jun. 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(1,673)
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
54,299 
54,299 
 
 
 
 
 
 
 
 
 
 
Other comprehensive loss
1,888 
1,888 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income
56,187 
56,187 
 
 
 
 
 
 
 
 
 
 
Balance at Sep. 30, 2014
1,522,271 
1,493,322 
 
 
 
 
 
 
 
 
 
 
Balance at Dec. 31, 2014
1,551,091 
1,522,223 
929 
29,060 
15,078 
1,492,948 
2,464,275 
(3,912)
(3,912)
18,109 
18,109 
(957,370)
Balance (in shares) at Dec. 31, 2014
92,907,310 
 
92,907,310 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Issuances of Common Units, net of issuance costs and tax withholdings
 
93,216 
 
 
932 
92,284 
 
 
0 
 
0 
 
Distributions paid on Common Units
 
(122,929)
 
 
(1,230)
(121,699)
 
 
0 
 
0 
 
Distributions paid on Preferred Units
 
(1,879)
 
 
(19)
(1,860)
 
 
0 
 
0 
 
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares
 
 
2,268,380 
 
 
 
 
 
 
 
 
 
Issuances of Common Stock, net of issuance costs and tax withholdings
93,216 
 
23 
0 
 
 
93,193 
0 
 
0 
 
0 
Conversions of Common Units to Common Stock - Shares
 
 
26,820 
 
 
 
 
 
 
 
 
 
Conversions of Common Units to Common Stock
1,206 
 
0 
0 
 
 
1,206 
0 
 
0 
 
0 
Dividends on Common Stock
(119,729)
 
0 
0 
 
 
0 
0 
 
0 
 
(119,729)
Dividends on Preferred Stock
(1,879)
 
0 
0 
 
 
0 
0 
 
0 
 
(1,879)
Adjustment of noncontrolling interests in the Operating Partnership to fair value
14,649 
 
0 
0 
 
 
14,649 
0 
 
0 
 
0 
Distributions to noncontrolling interests in consolidated affiliates
(1,070)
(1,070)
0 
0 
0 
0 
0 
0 
0 
(1,070)
(1,070)
0 
Issuances of restricted stock - shares
 
 
128,951 
 
 
 
 
 
 
 
 
 
Issuances of restricted stock
0 
 
0 
0 
 
 
0 
0 
 
0 
 
0 
Redemptions/repurchases of Preferred Stock
(10)
 
0 
(10)
 
 
0 
0 
 
0 
 
0 
Share-based compensation expense, net of forfeitures - shares
 
 
(1,703)
 
 
 
 
 
 
 
 
 
Share-based compensation expense, net of forfeitures
5,996 
5,996 
1 
0 
60 
5,936 
5,995 
0 
0 
0 
0 
0 
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
 
16,567 
 
 
166 
16,401 
 
 
0 
 
0 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(2,296)
 
0 
0 
 
 
0 
0 
 
0 
 
(2,296)
Net (income) attributable to noncontrolling interests in consolidated affiliates
0 
0 
0 
0 
(9)
(939)
0 
0 
0 
948 
948 
(948)
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
79,343 
79,343 
0 
0 
793 
78,550 
0 
0 
0 
0 
0 
79,343 
Other comprehensive loss
(2,698)
(2,698)
0 
0 
0 
0 
0 
(2,698)
(2,698)
0 
0 
0 
Total comprehensive income
76,645 
76,645 
 
 
 
 
 
 
 
 
 
 
Balance at Sep. 30, 2015
1,617,819 
1,588,769 
953 
29,050 
15,771 
1,561,621 
2,579,318 
(6,610)
(6,610)
17,987 
17,987 
(1,002,879)
Balance (in shares) at Sep. 30, 2015
95,329,758 
 
95,329,758 
 
 
 
 
 
 
 
 
 
Balance at Jun. 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(918)
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
31,617 
31,617 
 
 
 
 
 
 
 
 
 
 
Other comprehensive loss
(2,096)
(2,096)
 
 
 
 
 
 
 
 
 
 
Total comprehensive income
29,521 
29,521 
 
 
 
 
 
 
 
 
 
 
Balance at Sep. 30, 2015
$ 1,617,819 
$ 1,588,769 
 
 
 
 
 
 
 
 
 
 
Balance (in shares) at Sep. 30, 2015
95,329,758 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Operating activities:
 
 
Net income
$ 79,343 
$ 92,387 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
156,200 
146,895 
Amortization of lease incentives and acquisition-related intangible assets and liabilities
214 
249 
Share-based compensation expense
5,996 
6,179 
Allowance for losses on accounts and accrued straight-line rents receivable
1,851 
1,942 
Accrued interest on mortgages and notes receivable
(313)
(354)
Amortization of deferred financing costs
2,501 
2,270 
Amortization of cash flow hedges
2,781 
2,824 
Amortization of mortgages and notes payable fair value adjustments
7 
(845)
Impairments of real estate assets
0 
588 
Losses on debt extinguishment
220 
308 
Net gains on disposition of property
(10,581)
(42,569)
Gain on disposition of investment in unconsolidated affiliate
(4,155)
0 
Equity in earnings of unconsolidated affiliates
(4,367)
(886)
Changes in financing obligation
162 
(241)
Distributions of earnings from unconsolidated affiliates
4,099 
1,634 
Changes in operating assets and liabilities:
 
 
Accounts receivable
1,716 
(1,762)
Prepaid expenses and other assets
(3,475)
(2,927)
Accrued straight-line rents receivable
(16,955)
(16,202)
Accounts payable, accrued expenses and other liabilities
(5,834)
(5,815)
Net cash provided by operating activities
209,410 
183,675 
Investing activities:
 
 
Investments in acquired real estate and related intangible assets, net of cash acquired
(408,634)
(83,751)
Investments in development in process
(87,222)
(122,106)
Investments in tenant improvements and deferred leasing costs
(85,234)
(80,132)
Investments in building improvements
(38,295)
(39,401)
Net proceeds from disposition of real estate assets
22,781 
151,987 
Net proceeds from disposition of investment in unconsolidated affiliate
6,919 
0 
Distributions of capital from unconsolidated affiliates
10,227 
725 
Investments in mortgages and notes receivable
(1,772)
(419)
Repayments of mortgages and notes receivable
9,301 
16,974 
Investments in and advances/repayments to/from unconsolidated affiliates
20,416 
(6,425)
Redemption of investment in unconsolidated affiliate
0 
4,660 
Changes in restricted cash and other investing activities
(12,582)
(1,296)
Net cash used in investing activities
(564,095)
(159,184)
Financing activities:
 
 
Dividends on Common Stock
(119,729)
(115,037)
Redemptions/repurchases of Preferred Stock
(10)
0 
Redemptions of Common Units
0 
(93)
Dividends on Preferred Stock
(1,879)
(1,881)
Distributions to noncontrolling interests in the Operating Partnership
(3,721)
(3,745)
Distributions to noncontrolling interests in consolidated affiliates
(1,070)
(940)
Proceeds from the issuance of Common Stock
98,485 
49,216 
Costs paid for the issuance of Common Stock
(1,518)
(600)
Repurchase of shares related to tax withholdings
(3,751)
(2,694)
Borrowings on revolving credit facility
393,900 
377,700 
Repayments of revolving credit facility
(337,900)
(443,400)
Borrowings on mortgages and notes payable
375,000 
296,949 
Repayments of mortgages and notes payable
(43,076)
(172,810)
Payments on financing obligation
(1,722)
(2,904)
Payments of debt extinguishment costs
0 
(369)
Additions to deferred financing costs and other financing activities
(1,972)
(2,467)
Net cash provided by/(used in) financing activities
351,037 
(23,075)
Net increase/(decrease) in cash and cash equivalents
(3,648)
1,416 
Cash and cash equivalents at beginning of the period
8,832 
10,184 
Cash and cash equivalents at end of the period
5,184 
11,600 
Supplemental disclosure of cash flow information:
 
 
Cash paid for interest, net of amounts capitalized
62,661 
63,340 
Supplemental disclosure of non-cash investing and financing activities:
 
 
Unrealized losses on cash flow hedges
(5,666)
(3,337)
Conversions of Common Units to Common Stock
1,206 
162 
Changes in accrued capital expenditures
1,759 
17,255 
Write-off of fully depreciated real estate assets
44,742 
29,953 
Write-off of fully amortized deferred financing and leasing costs
27,658 
17,138 
Adjustment of noncontrolling interests in the Operating Partnership to fair value
(14,649)
8,955 
Unrealized gains on tax increment financing bond
187 
293 
Assumption of mortgages and notes payable related to acquisition activities
19,277 
0 
Reduction in the carrying amount of real estate purchased from unconsolidated affiliate by our share of the unconsolidated affiliate's gain
3,124 
0 
Contingent consideration in connection with the acquisition of land
900 
0 
Highwoods Realty Limited Partnership [Member]
 
 
Operating activities:
 
 
Net income
79,343 
92,387 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
156,200 
146,895 
Amortization of lease incentives and acquisition-related intangible assets and liabilities
214 
249 
Share-based compensation expense
5,996 
6,179 
Allowance for losses on accounts and accrued straight-line rents receivable
1,851 
1,942 
Accrued interest on mortgages and notes receivable
(313)
(354)
Amortization of deferred financing costs
2,501 
2,270 
Amortization of cash flow hedges
2,781 
2,824 
Amortization of mortgages and notes payable fair value adjustments
7 
(845)
Impairments of real estate assets
0 
588 
Losses on debt extinguishment
220 
308 
Net gains on disposition of property
(10,581)
(42,569)
Gain on disposition of investment in unconsolidated affiliate
(4,155)
0 
Equity in earnings of unconsolidated affiliates
(4,367)
(886)
Changes in financing obligation
162 
(241)
Distributions of earnings from unconsolidated affiliates
4,099 
1,634 
Changes in operating assets and liabilities:
 
 
Accounts receivable
1,716 
(1,762)
Prepaid expenses and other assets
(3,475)
(2,885)
Accrued straight-line rents receivable
(16,955)
(16,202)
Accounts payable, accrued expenses and other liabilities
(5,748)
(5,804)
Net cash provided by operating activities
209,496 
183,728 
Investing activities:
 
 
Investments in acquired real estate and related intangible assets, net of cash acquired
(408,634)
(83,751)
Investments in development in process
(87,222)
(122,106)
Investments in tenant improvements and deferred leasing costs
(85,234)
(80,132)
Investments in building improvements
(38,295)
(39,401)
Net proceeds from disposition of real estate assets
22,781 
151,987 
Net proceeds from disposition of investment in unconsolidated affiliate
6,919 
0 
Distributions of capital from unconsolidated affiliates
10,227 
725 
Investments in mortgages and notes receivable
(1,772)
(419)
Repayments of mortgages and notes receivable
9,301 
16,974 
Investments in and advances/repayments to/from unconsolidated affiliates
20,416 
(6,425)
Redemption of investment in unconsolidated affiliate
0 
4,660 
Changes in restricted cash and other investing activities
(12,582)
(1,296)
Net cash used in investing activities
(564,095)
(159,184)
Financing activities:
 
 
Distributions on Common Units
(122,929)
(118,261)
Redemptions/repurchases of Preferred Units
(10)
0 
Redemptions of Common Units
0 
(93)
Distributions on Preferred Units
(1,879)
(1,881)
Distributions to noncontrolling interests in consolidated affiliates
(1,070)
(940)
Proceeds from the issuance of Common Units
98,485 
49,216 
Costs paid for the issuance of Common Units
(1,518)
(600)
Repurchase of units related to tax withholdings
(3,751)
(2,694)
Borrowings on revolving credit facility
393,900 
377,700 
Repayments of revolving credit facility
(337,900)
(443,400)
Borrowings on mortgages and notes payable
375,000 
296,949 
Repayments of mortgages and notes payable
(43,076)
(172,810)
Payments on financing obligation
(1,722)
(2,904)
Payments of debt extinguishment costs
0 
(369)
Additions to deferred financing costs and other financing activities
(2,685)
(3,032)
Net cash provided by/(used in) financing activities
350,845 
(23,119)
Net increase/(decrease) in cash and cash equivalents
(3,754)
1,425 
Cash and cash equivalents at beginning of the period
8,938 
10,281 
Cash and cash equivalents at end of the period
5,184 
11,706 
Supplemental disclosure of cash flow information:
 
 
Cash paid for interest, net of amounts capitalized
62,661 
63,340 
Supplemental disclosure of non-cash investing and financing activities:
 
 
Unrealized losses on cash flow hedges
(5,666)
(3,337)
Changes in accrued capital expenditures
1,759 
17,255 
Write-off of fully depreciated real estate assets
44,742 
29,953 
Write-off of fully amortized deferred financing and leasing costs
27,658 
17,138 
Adjustment of Redeemable Common Units to fair value
(17,280)
7,768 
Unrealized gains on tax increment financing bond
187 
293 
Assumption of mortgages and notes payable related to acquisition activities
19,277 
0 
Reduction in the carrying amount of real estate purchased from unconsolidated affiliate by our share of the unconsolidated affiliate's gain
3,124 
0 
Contingent consideration in connection with the acquisition of land
$ 900 
$ 0 
Description of Business and Significant Accounting Policies
Description of Business and Significant Accounting Policies
Description of Business and Significant Accounting Policies

Description of Business

Highwoods Properties, Inc. (the “Company”) is a fully integrated real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. The Company conducts its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”). At September 30, 2015, we owned or had an interest in 32.5 million rentable square feet of in-service properties, 1.4 million rentable square feet of properties under development and approximately 500 acres of development land.
 
The Company is the sole general partner of the Operating Partnership. At September 30, 2015, the Company owned all of the Preferred Units and 94.9 million, or 97.0%, of the Common Units in the Operating Partnership. Limited partners own the remaining 2.9 million Common Units. During the nine months ended September 30, 2015, the Company redeemed 26,820 Common Units for a like number of shares of Common Stock.

Common Stock Offerings
 
During the three and nine months ended September 30, 2015, the Company issued 1,206,200 and 2,178,859 shares, respectively, of Common Stock under its equity sales agreements at an average gross sales price of $41.89 and $43.33 per share, respectively, and received net proceeds, after sales commissions, of $49.8 million and $93.0 million, respectively. As a result of this activity and the redemptions discussed above, the percentage of Common Units owned by the Company increased from 96.9% at December 31, 2014 to 97.0% at September 30, 2015.

Basis of Presentation
 
Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. All intercompany transactions and accounts have been eliminated. At December 31, 2014, we had involvement with, but were not the primary beneficiary in, an entity that we concluded to be a variable interest entity (see Note 3).
 
During the second quarter of 2015, as a result of our partner’s irrevocable exercise of a buy-sell provision in our SF-HIW Harborview Plaza, LP ("Harborview") joint venture agreement, our partner’s right to put its 80.0% equity interest back to us became no longer exercisable. As a result, we recorded the original contribution transaction as a partial sale and recognized $2.2 million of gain. Our investment in this joint venture then qualified for the equity method of accounting, which resulted in the retrospective revision of the Consolidated Balance Sheets and Consolidated Statements of Equity and Capital for all prior periods presented. The effects of the retrospective application of the equity method of accounting to the Consolidated Statements of Income, Comprehensive Income and Cash Flows were not material. The effects of the retrospective application of the equity method of accounting to the Company's December 31, 2014 Balance Sheet were as follows:
 
 
December 31,
2014
 
Previously Reported
 
As Revised
Net real estate assets
$
3,481,406

 
$
3,452,006

Investments in and advances to unconsolidated affiliates
$
27,071

 
$
50,685

Total Assets
$
4,004,909

 
$
3,999,123

Financing obligations
$
23,519

 
$
8,962

Distributions in excess of net income available for common stockholders
$
(966,141
)
 
$
(957,370
)
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity
$
4,004,909

 
$
3,999,123



1.    Description of Business and Significant Accounting Policies – Continued
 
The unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information, in the opinion of management, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have condensed or omitted certain notes and other information from the interim Consolidated Financial Statements presented in this Quarterly Report as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2014 Annual Report on Form 10-K.

Use of Estimates
 
The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates.

Recently Issued Accounting Standards

The Financial Accounting Standards Board ("FASB") recently issued an accounting standards update that requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that we identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when we satisfy the performance obligations. We will also be required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The accounting standards update is required to be adopted in 2018. Retrospective application is required either to all periods presented or with the cumulative effect of initial adoption recognized in the period of adoption. We are in the process of evaluating this accounting standards update.

The FASB recently issued an accounting standards update that amends consolidation requirements. The amendments significantly change the consolidation analysis required under GAAP and will require companies to reevaluate all previous consolidation conclusions. The accounting standards update is required to be adopted in 2016. We are in the process of evaluating this accounting standards update.

The FASB recently issued an accounting standards update that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The accounting standards update is required to be adopted in 2016. Retrospective application is required. We are in the process of evaluating this accounting standards update.
Real Estate Assets
Real Estate Assets
Real Estate Assets

Acquisitions

During the third quarter of 2015, we acquired:

•
a building in Tampa, FL encompassing 528,000 rentable square feet for a net purchase price of $113.5 million and an adjacent land parcel for a purchase price of $2.2 million; and

•
two buildings in Atlanta, GA encompassing 896,000 rentable square feet for a net purchase price of $290.3 million.

During the second quarter of 2015, we acquired:

•
land in Atlanta, GA for a purchase price and related transaction costs of $5.2 million (including contingent consideration of $0.9 million); and

•
our Highwoods DLF 98/29, LLC joint venture partner’s 77.2% interest in a building in Orlando, FL encompassing 168,000 rentable square feet in exchange for the assumption of secured debt recorded at fair value of $19.3 million (see Note 6).

During the three and nine months ended September 30, 2015, we expensed $0.9 million and $1.0 million, respectively, of acquisition costs (included in general and administrative expenses) related to these acquisitions. The assets acquired and liabilities assumed were recorded at fair value as determined by management based on information available at the acquisition date and on current assumptions as to future operations.

Pro Forma Disclosure

The following table sets forth a summary of the fair value of the major assets acquired and liabilities assumed relating to the above-referenced acquisition of two buildings in Atlanta, GA during the third quarter of 2015:

 
Total
Purchase Price Allocation
Real estate assets
$
275,639

Acquisition-related intangible assets (in deferred financing and leasing costs)
23,722

Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)
(9,076
)
Total allocation
$
290,285


 
The following table sets forth the Company's revenues and net income, adjusted for interest expense, straight-line rental income, depreciation and amortization related to purchase price allocations and acquisition costs, assuming the above-referenced acquisition of two buildings in Atlanta, GA during the third quarter of 2015 had been completed as of January 1, 2013:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Pro forma revenues
$
171,247

 
$
159,944

 
$
505,107

 
$
477,120

Pro forma net income
$
33,354

 
$
54,176

 
$
80,647

 
$
92,019

Pro forma net income available for common stockholders
$
31,486

 
$
51,585

 
$
75,524

 
$
86,173

Pro forma earnings per share - basic
$
0.33

 
$
0.57

 
$
0.80

 
$
0.95

Pro forma earnings per share - diluted
$
0.33

 
$
0.57

 
$
0.80

 
$
0.95



2.    Real Estate Assets - Continued
Dispositions

During the third quarter of 2015, we sold:

•
a building for a sale price of $15.3 million and recorded a gain on disposition of property of $6.5 million; and

•
land for a sale price of $1.8 million and recorded a gain on disposition of property of $0.5 million.

During the second quarter of 2015, we sold land for a sale price of $0.5 million and recorded a gain on disposition of property of $0.2 million.

During the first quarter of 2015, we sold:

•
two buildings for an aggregate sale price of $3.5 million and recorded aggregate gains on disposition of property of $0.4 million; and

•
land for a sale price of $2.5 million and recorded a gain on disposition of property of $0.8 million.
Mortgages and Notes Receivable
Mortgages and Notes Receivable
Mortgages and Notes Receivable

Mortgages and notes receivable were $2.1 million and $13.1 million at September 30, 2015 and December 31, 2014, respectively. During the second quarter of 2015, $9.9 million of secured acquisition financing provided to a third party in 2012 was repaid, including accrued interest. Previously, we concluded this arrangement to be an interest in a variable interest entity. However, since we did not have the power to direct matters that most significantly impact the activities of the entity, we did not qualify as the primary beneficiary. Accordingly, the entity was not consolidated. Our risk of loss with respect to this arrangement was limited to the carrying value of the mortgage receivable.

We evaluate the ability to collect our mortgages and notes receivable by monitoring the leasing statistics and/or market fundamentals of these assets. As of September 30, 2015, our mortgages and notes receivable were not in default and there were no other indicators of impairment.
Investments In and Advances To Unconsolidated Affiliates
Investments In and Advances To Unconsolidated Affiliates
Investments in and Advances to Unconsolidated Affiliates

We have equity interests of up to 50.0% in various joint ventures with unrelated third parties that are accounted for using the equity method of accounting because we have the ability to exercise significant influence over their operating and financial policies.
 
The following table sets forth the summarized income statements of our unconsolidated affiliates:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Income Statements:
 
 
 
 
 
 
 
Rental and other revenues
$
12,323

 
$
12,425

 
$
36,977

 
$
37,703

Expenses:
 
 
 
 
 
 
 
Rental property and other expenses
5,985

 
6,441

 
17,683

 
18,880

Depreciation and amortization
3,193

 
3,281

 
9,418

 
10,098

Interest expense
1,645

 
2,201

 
5,826

 
6,713

Total expenses
10,823

 
11,923

 
32,927

 
35,691

Income before disposition of property
1,500

 
502

 
4,050

 
2,012

Gains on disposition of property
—

 
—

 
18,181

 
1,949

Net income
$
1,500

 
$
502

 
$
22,231

 
$
3,961



During the third quarter of 2015, we sold our 20.0% interest in Harborview to our partner for net proceeds of $6.9 million and recorded a $4.2 million gain on disposition of investment in unconsolidated affiliate. The $20.8 million interest-only secured loan previously provided by us to Harborview was paid in full upon consummation of the sale.

See Note 2 for a description of our acquisition of a building in Orlando, FL from Highwoods DLF 98/29, LLC during the second quarter of 2015. The joint venture recorded a gain on disposition of property of $13.7 million. Our share of $3.1 million was recorded as a reduction to real estate assets.

During the second quarter of 2015, Highwoods KC Glenridge Office, LLC and Highwoods KC Glenridge Land, LLC collectively sold two buildings and land to an unrelated third party for an aggregate sale price of $24.5 million (before closing credits to buyer of $0.3 million for unfunded tenant improvements) and recorded gains on disposition of property of $2.4 million. We recorded $0.9 million as our share of these gains through equity in earnings of unconsolidated affiliates.

During the first quarter of 2015, Highwoods DLF 97/26 DLF 99/32, LP sold a building to an unrelated third party for a sale price of $7.0 million and recorded a gain on disposition of property of $2.1 million. We recorded $1.1 million as our share of this gain through equity in earnings of unconsolidated affiliates.
Intangible Assets and Below Market Lease Liabilities
Intangible Assets and Below Market Lease Liabilities
Intangible Assets and Below Market Lease Liabilities
 
The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization:
 
 
September 30,
2015
 
December 31,
2014
Assets:
 
 
 
Deferred financing costs
$
19,935

 
$
19,478

Less accumulated amortization
(8,906
)
 
(7,953
)
 
11,029

 
11,525

Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)
359,377

 
322,094

Less accumulated amortization
(114,557
)
 
(104,851
)
 
244,820

 
217,243

Deferred financing and leasing costs, net
$
255,849

 
$
228,768

 
 
 
 
Liabilities (in accounts payable, accrued expenses and other liabilities):
 
 
 
Acquisition-related below market lease liabilities
$
65,002

 
$
55,783

Less accumulated amortization
(17,166
)
 
(13,548
)
 
$
47,836

 
$
42,235


The following table sets forth amortization of intangible assets and below market lease liabilities:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Amortization of deferred financing costs
$
873

 
$
819

 
$
2,501

 
$
2,270

Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
$
11,176

 
$
9,465

 
$
31,638

 
$
29,443

Amortization of lease incentives (in rental and other revenues)
$
378

 
$
327

 
$
1,162

 
$
1,077

Amortization of acquisition-related intangible assets (in rental and other revenues)
$
1,414

 
$
1,080

 
$
3,769

 
$
3,310

Amortization of acquisition-related intangible assets (in rental property and other expenses)
$
140

 
$
140

 
$
416

 
$
416

Amortization of acquisition-related below market lease liabilities (in rental and other revenues)
$
(1,727
)
 
$
(1,532
)
 
$
(5,133
)
 
$
(4,554
)


5.    Intangible Assets and Below Market Lease Liabilities - Continued
 
The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:
 
 
 
Amortization of Deferred Financing Costs
 
Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)
 
Amortization of Lease Incentives (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses)
 
Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues)
October 1 through December 31, 2015
 
$
1,049

 
$
12,976

 
$
353

 
$
1,111

 
$
132

 
$
(1,888
)
2016
 
3,252

 
45,955

 
1,298

 
3,884

 
553

 
(6,997
)
2017
 
2,711

 
38,353

 
1,197

 
2,731

 
553

 
(6,653
)
2018
 
1,531

 
31,244

 
1,091

 
1,752

 
553

 
(6,216
)
2019
 
1,123

 
25,530

 
898

 
1,307

 
553

 
(5,740
)
Thereafter
 
1,363

 
65,865

 
2,845

 
3,553

 
533

 
(20,342
)
 
 
$
11,029

 
$
219,923

 
$
7,682

 
$
14,338

 
$
2,877

 
$
(47,836
)
Weighted average remaining amortization periods as of September 30, 2015 (in years)
 
4.0

 
6.7

 
7.9

 
6.1

 
5.2

 
8.1



The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2015 acquisition activity:

 
 
Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues)
 
Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization)
 
Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues)
Amount recorded from acquisition activity
 
$
3,051

 
$
35,534

 
$
(10,733
)
Weighted average remaining amortization periods as of September 30, 2015 (in years)
 
4.9

 
5.5

 
9.7

Mortgages and Notes Payable
Mortgages and Notes Payable
Mortgages and Notes Payable
 
The following table sets forth our mortgages and notes payable:
 
 
September 30,
2015
 
December 31,
2014
Secured indebtedness
$
288,623

 
$
312,868

Unsecured indebtedness
2,190,130

 
1,758,521

Total mortgages and notes payable
$
2,478,753

 
$
2,071,389


 
At September 30, 2015, our secured mortgage loans were collateralized by real estate assets with an aggregate undepreciated book value of $547.2 million.
 

6.    Mortgages and Notes Payable - Continued

Our $475.0 million unsecured revolving credit facility is scheduled to mature in January 2018 and includes an accordion feature that allows for an additional $75.0 million of borrowing capacity subject to additional lender commitments. Assuming no defaults have occurred, we have an option to extend the maturity for two additional six-month periods. The interest rate at our current credit ratings is LIBOR plus 110 basis points and the annual facility fee is 20 basis points. There was $265.0 million and $276.0 million outstanding under our revolving credit facility at September 30, 2015 and October 20, 2015, respectively. At both September 30, 2015 and October 20, 2015, we had $0.2 million of outstanding letters of credit, which reduces the availability on our revolving credit facility. As a result, the unused capacity of our revolving credit facility at September 30, 2015 and October 20, 2015 was $209.8 million and $198.8 million, respectively.

During the third quarter of 2015, we obtained a $350.0 million, six-month unsecured bridge facility. The bridge facility is originally scheduled to mature on March 28, 2016. Assuming no defaults have occurred, we have an option to extend the maturity for an additional six-month period. The interest rate on the bridge facility at our current credit ratings is LIBOR plus 110 basis points. There was $250.0 million outstanding under our bridge facility at September 30, 2015. The unused capacity of our bridge facility at September 30, 2015 was $100.0 million.

During the second quarter of 2015, we amended our $225.0 million, seven-year unsecured bank term loan, which was scheduled to mature in January 2019. We increased the borrowed amount to $350.0 million. The amended term loan is now scheduled to mature in June 2020 and the interest rate, based on our current credit ratings, was reduced from LIBOR plus 175 basis points to LIBOR plus 110 basis points. The interest rate is based on the higher of the publicly announced ratings from Moody’s Investors Service or Standard & Poor’s Ratings Services. The financial and other covenants under the amended term loan are unchanged. We incurred $1.3 million of deferred financing fees in connection with this amendment, which will be amortized along with existing unamortized deferred loan fees over the remaining term of the new loan.

During the second quarter of 2015, we prepaid without penalty the remaining $39.4 million balance on a secured mortgage loan with an effective interest rate of 6.43% that was originally scheduled to mature in November 2015. We recorded $0.2 million of loss on debt extinguishment related to this prepayment.

During the second quarter of 2015, we acquired our joint venture partner’s 77.2% interest in a building in Orlando, FL. Simultaneously with this acquisition, the joint venture's previously existing mortgage note was restructured into a new $18.0 million first mortgage note and a $10.2 million subordinated note, both of which are scheduled to mature in July 2017. The first mortgage note is interest only with an effective interest rate of 5.36%, payable monthly. The subordinated note has an effective interest rate of 8.6%. Additionally, we deposited $3.0 million into escrow to fund tenant improvements, leasing commissions and building improvements. The first mortgage note and subordinated note can be prepaid at any time commencing October 2016 upon a sale or refinancing of the property. In such event, the subordinated note and any and all accrued interest thereon would be deemed fully satisfied upon payment of a "waterfall payment," if any. Such "waterfall payment" would be a cash payment equal to 50.0% of the amount, if any, by which the net sale proceeds or appraised value in the event of a refinancing exceeds (1) the outstanding principal of the first mortgage note, (2) the funds deposited by us into escrow to fund tenant improvements, leasing commissions and building improvements and (3) a 10.0% return on such funds deposited by us into escrow. The fair value of the first mortgage note was $18.3 million and the fair value of the subordinated note equaled the projected waterfall payment of $1.0 million.

We are currently in compliance with financial covenants and other requirements with respect to our consolidated debt.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments
 
Our interest rate swaps have been designated as and are being accounted for as cash flow hedges with changes in fair value recorded in other comprehensive income/(loss) each reporting period. No gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on our cash flow hedges during the nine months ended September 30, 2015 and 2014. We have no collateral requirements related to our interest rate swaps.
 
Amounts reported in accumulated other comprehensive loss ("AOCL") related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the period from October 1, 2015 through September 30, 2016, we estimate that $2.9 million will be reclassified to interest expense.
 

7.
Derivative Financial Instruments - Continued

The following table sets forth the fair value of our derivatives:
 
 
September 30,
2015
 
December 31,
2014
Derivatives:
 
 
 
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
 
 
 
Interest rate swaps
$
5,535

 
$
2,412



The following table sets forth the effect of our cash flow hedges on AOCL and interest expense:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Derivatives Designated as Cash Flow Hedges:
 
 
 
 
 
 
 
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
(3,021
)
 
$
913

 
$
(5,666
)
 
$
(3,337
)
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
932

 
$
952

 
$
2,781

 
$
2,824

Noncontrolling Interests
Noncontrolling Interests
Noncontrolling Interests

Noncontrolling Interests in Consolidated Affiliates
 
At September 30, 2015, our noncontrolling interests in consolidated affiliates relate to our joint venture partner's 50.0% interest in office properties in Richmond, VA. Our joint venture partner is an unrelated third party.

Noncontrolling Interests in the Operating Partnership

The following table sets forth the Company's noncontrolling interests in the Operating Partnership:
 
 
Nine Months Ended
September 30,
 
2015
 
2014
Beginning noncontrolling interests in the Operating Partnership
$
130,048

 
$
106,480

Adjustment of noncontrolling interests in the Operating Partnership to fair value
(14,649
)
 
8,955

Conversions of Common Units to Common Stock
(1,206
)
 
(162
)
Redemptions of Common Units
—

 
(93
)
Net income attributable to noncontrolling interests in the Operating Partnership
2,296

 
2,813

Distributions to noncontrolling interests in the Operating Partnership
(3,721
)
 
(3,745
)
Total noncontrolling interests in the Operating Partnership
$
112,768

 
$
114,248



8.
Noncontrolling Interests - Continued

The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Net income available for common stockholders
$
29,749

 
$
51,708

 
$
74,220

 
$
86,541

Increase in additional paid in capital from conversions of Common Units
to Common Stock
—

 
—

 
1,206

 
162

Change from net income available for common stockholders and transfers from noncontrolling interests
$
29,749

 
$
51,708

 
$
75,426

 
$
86,703

Disclosure About Fair Value of Financial Instruments
Disclosure About Fair Value of Financial Instruments
Disclosure About Fair Value of Financial Instruments

The following summarizes the three levels of inputs that we use to measure fair value.

Level 1.  Quoted prices in active markets for identical assets or liabilities.

Our Level 1 asset is our investment in marketable securities that we use to pay benefits under our non-qualified deferred compensation plan. Our Level 1 liability is our non-qualified deferred compensation obligation. The Company's Level 1 noncontrolling interests in the Operating Partnership relate to the ownership of Common Units by various individuals and entities other than the Company.

Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

Our Level 2 asset is the fair value of certain of our mortgages and notes receivable. Our Level 2 liabilities include the fair value of our mortgages and notes payable and interest rate swaps.

The fair value of mortgages and notes receivable and mortgages and notes payable is estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants. The fair value of interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments of interest rate swaps are based on the expectation of future LIBOR interest rates (forward curves) derived from observed market LIBOR interest rate curves. In addition, credit valuation adjustments are incorporated in the fair values to account for potential nonperformance risk, but were concluded to not be significant inputs to the calculation for the periods presented.
 
Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
 
Our Level 3 assets include (1) certain of our mortgages and notes receivable, which were estimated by the income approach utilizing internal cash flow projections and market interest rates to estimate the price that would be paid in an orderly transaction between market participants, and (2) our tax increment financing bond, which is not routinely traded but whose fair value is determined by the income approach utilizing contractual cash flows and market-based interest rates to estimate the projected redemption value based on quoted bid/ask prices for similar unrated municipal bonds.
 
Our Level 3 liability is the fair value of our financing obligation, which was estimated by the income approach to approximate the price that would be paid in an orderly transaction between market participants, utilizing: (1) contractual cash flows; (2) market-based interest rates; and (3) a number of other assumptions including demand for space, competition for customers, changes in market rental rates, costs of operation and expected ownership periods.


9.
Disclosure About Fair Value of Financial Instruments - Continued

The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured at fair value within the fair value hierarchy.
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
 
Total
 
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
 
Significant Observable Inputs
 
Significant Unobservable Inputs
Fair Value at September 30, 2015:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
2,132

 
$
—

 
$
2,132

 
$
—

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
3,008

 
3,008

 
—

 
—

Tax increment financing bond (in prepaid expenses and other assets)
 
12,634

 
—

 
—

 
12,634

Total Assets
 
$
17,774

 
$
3,008

 
$
2,132

 
$
12,634

Noncontrolling Interests in the Operating Partnership
 
$
112,768

 
$
112,768

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, at fair value (1)
 
$
2,520,419

 
$
—

 
$
2,520,419

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
5,535

 
—

 
5,535

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
3,008

 
3,008

 
—

 
—

Financing obligation, at fair value (1)
 
7,283

 
—

 
—

 
7,283

Total Liabilities
 
$
2,536,245

 
$
3,008

 
$
2,525,954

 
$
7,283

Fair Value at December 31, 2014:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
13,142

 
$
—

 
$
2,247

 
$
10,895

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
3,635

 
3,635

 
—

 
—

Tax increment financing bond (in prepaid expenses and other assets)
 
12,447

 
—

 
—

 
12,447

Total Assets
 
$
29,224

 
$
3,635

 
$
2,247

 
$
23,342

Noncontrolling Interests in the Operating Partnership
 
$
130,048

 
$
130,048

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, at fair value (1)
 
$
2,141,334

 
$
—

 
$
2,141,334

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
2,412

 
—

 
2,412

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
3,635

 
3,635

 
—

 
—

Financing obligation, at fair value (as revised) (1)
 
8,623

 
—

 
—

 
8,623

Total Liabilities (as revised)
 
$
2,156,004

 
$
3,635

 
$
2,143,746

 
$
8,623


__________
(1)    Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2015 and December 31, 2014.
9.
Disclosure About Fair Value of Financial Instruments - Continued

The following table sets forth the changes in our Level 3 asset, which is recorded at fair value on our Consolidated Balance Sheets:

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Asset:
 
 
 
 
 
 
 
Tax Increment Financing Bond:
 
 
 
 
 
 
 
Beginning balance
$
12,641

 
$
13,673

 
$
12,447

 
$
13,403

Unrealized gains/(losses) (in AOCL)
(7
)
 
23

 
187

 
293

Ending balance
$
12,634

 
$
13,696

 
$
12,634

 
$
13,696



During 2007, we acquired a tax increment financing bond associated with a parking garage developed by us. This bond amortizes to maturity in 2020. The estimated fair value at September 30, 2015 was $0.3 million below the outstanding principal due on the bond. If the discount rate used to fair value this bond was 100 basis points higher or lower, the fair value of the bond would have been $0.3 million lower or $0.3 million higher, respectively, as of September 30, 2015. Payment of the principal and interest for the bond is guaranteed by us. We have recorded no credit losses related to the bond during the three and nine months ended September 30, 2015 and 2014. There is no legal right of offset with the liability, which we report as a financing obligation, related to this tax increment financing bond.
 
The following table sets forth quantitative information about the unobservable input of our Level 3 asset, which is recorded at fair value on our Consolidated Balance Sheets:
 
 
Valuation
Technique
 
Unobservable
Input
 
Rate as of
 
 
 
September 30,
2015
 
December 31,
2014
Asset:
 
 
 
 
 
 
 
Tax increment financing bond
Income approach
 
Discount rate
 
7.7%
 
8.4%
Share-Based Payments
Share-Based Payments
Share-Based Payments
 
During the nine months ended September 30, 2015, the Company granted 197,408 stock options with an exercise price equal to the closing market price of a share of Common Stock on the date of grant. The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model, which resulted in a weighted average grant date fair value per share of $6.19. During the nine months ended September 30, 2015, the Company also granted 71,994 shares of time-based restricted stock and 56,957 shares of total return-based restricted stock with weighted average grant date fair values per share of $45.91 and $43.77, respectively. We recorded share-based compensation expense of $0.9 million and $0.8 million during the three months ended September 30, 2015 and 2014, respectively, and $6.0 million and $6.2 million during the nine months ended September 30, 2015 and 2014, respectively. At September 30, 2015, there was $5.8 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.4 years.
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
 
The following table sets forth the components of AOCL:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Tax increment financing bond:
 
 
 
 
 
 
 
Beginning balance
$
(251
)
 
$
(759
)
 
$
(445
)
 
$
(1,029
)
Unrealized gains/(losses) on tax increment financing bond
(7
)
 
23

 
187

 
293

Ending balance
(258
)
 
(736
)
 
(258
)
 
(736
)
Cash flow hedges:
 
 
 
 
 
 
 
Beginning balance
(4,263
)
 
(3,960
)
 
(3,467
)
 
(1,582
)
Unrealized gains/(losses) on cash flow hedges
(3,021
)
 
913

 
(5,666
)
 
(3,337
)
Amortization of cash flow hedges (1)
932

 
952

 
2,781

 
2,824

Ending balance
(6,352
)
 
(2,095
)
 
(6,352
)
 
(2,095
)
Total accumulated other comprehensive loss
$
(6,610
)

$
(2,831
)
 
$
(6,610
)
 
$
(2,831
)
__________
(1)    Amounts reclassified out of AOCL into contractual interest expense.
Real Estate and Other Assets Held For Sale
Real Estate and Other Assets Held For Sale
Real Estate and Other Assets Held For Sale

The following table sets forth the major classes of assets of our real estate and other assets, net, held for sale:

 
September 30,
2015
 
December 31,
2014
Assets:
 
 
 
Land held for development
$
2,606

 
$
995

Net real estate assets
2,606

 
995

Prepaid expenses and other assets
23

 
43

Real estate and other assets, net, held for sale
$
2,629

 
$
1,038

Earnings Per Share and Per Unit
Earnings Per Share and Per Unit
Earnings Per Share and Per Unit

The following table sets forth the computation of basic and diluted earnings per share of the Company:

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Earnings per Common Share - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
31,617

 
$
54,299

 
$
79,343

 
$
92,003

Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
(918
)
 
(1,673
)
 
(2,296
)
 
(2,801
)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(324
)
 
(291
)
 
(948
)
 
(1,152
)
Dividends on Preferred Stock
(626
)
 
(627
)
 
(1,879
)
 
(1,881
)
Income from continuing operations available for common stockholders
29,749

 
51,708

 
74,220

 
86,169

Income from discontinued operations
—

 
—

 
—

 
384

Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
—

 
—

 
—

 
(12
)
Income from discontinued operations available for common stockholders
—

 
—

 
—

 
372

Net income available for common stockholders
$
29,749

 
$
51,708

 
$
74,220

 
$
86,541

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
94,693

 
90,668

 
93,996

 
90,299

Earnings per Common Share - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.31

 
$
0.57

 
$
0.79

 
$
0.96

Income from discontinued operations available for common stockholders
—

 
—

 
—

 
—

Net income available for common stockholders
$
0.31

 
$
0.57

 
$
0.79

 
$
0.96

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
31,617

 
$
54,299

 
$
79,343

 
$
92,003

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(324
)
 
(291
)
 
(948
)
 
(1,152
)
Dividends on Preferred Stock
(626
)
 
(627
)
 
(1,879
)
 
(1,881
)
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
30,667

 
53,381

 
76,516

 
88,970

Income from discontinued operations available for common stockholders
—

 
—

 
—

 
384

Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
$
30,667

 
$
53,381

 
$
76,516

 
$
89,354

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
94,693

 
90,668

 
93,996

 
90,299

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
58

 
118

 
89

 
121

Noncontrolling interests Common Units
2,910

 
2,937

 
2,918

 
2,938

Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) (2)
97,661

 
93,723

 
97,003

 
93,358

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.31

 
$
0.57

 
$
0.79

 
$
0.96

Income from discontinued operations available for common stockholders
—

 
—

 
—

 
—

Net income available for common stockholders
$
0.31

 
$
0.57

 
$
0.79

 
$
0.96

__________

 
13.
Earnings Per Share and Per Unit - Continued
(1)
There were 0.2 million options outstanding during both the three and nine months ended September 30, 2015 that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive. There were no such options outstanding during both the three and nine months ended September 30, 2014.
(2)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.

The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
31,617

 
$
54,299

 
$
79,343

 
$
92,003

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(324
)
 
(291
)
 
(948
)
 
(1,152
)
Distributions on Preferred Units
(626
)
 
(627
)
 
(1,879
)
 
(1,881
)
Income from continuing operations available for common unitholders
30,667

 
53,381

 
76,516

 
88,970

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
384

Net income available for common unitholders
$
30,667

 
$
53,381

 
$
76,516

 
$
89,354

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units
97,194

 
93,196

 
96,505

 
92,828

Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.32

 
$
0.57

 
$
0.79

 
$
0.96

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
—

Net income available for common unitholders
$
0.32

 
$
0.57

 
$
0.79

 
$
0.96

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
31,617

 
$
54,299

 
$
79,343

 
$
92,003

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(324
)
 
(291
)
 
(948
)
 
(1,152
)
Distributions on Preferred Units
(626
)
 
(627
)
 
(1,879
)
 
(1,881
)
Income from continuing operations available for common unitholders
30,667

 
53,381

 
76,516

 
88,970

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
384

Net income available for common unitholders
$
30,667

 
$
53,381

 
$
76,516

 
$
89,354

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units
97,194

 
93,196

 
96,505

 
92,828

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
58

 
118

 
89

 
121

Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) (2)
97,252

 
93,314

 
96,594

 
92,949

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.32

 
$
0.57

 
$
0.79

 
$
0.96

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
—

Net income available for common unitholders
$
0.32

 
$
0.57

 
$
0.79

 
$
0.96

__________
(1)
There were 0.2 million options outstanding during both the three and nine months ended September 30, 2015 that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive. There were no such options outstanding during both the three and nine months ended September 30, 2014.
(2)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
Segment Information
Segment Information
Segment Information

The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Our segment information for the three and nine months ended September 30, 2014 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments.

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Rental and Other Revenues:
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
25,737

 
$
24,682

 
$
76,130

 
$
71,286

Greensboro, NC
5,288

 
6,439

 
16,126

 
19,469

Greenville, SC
—

 
532

 
—

 
2,140

Kansas City, MO
4,207

 
4,218

 
12,565

 
12,401

Memphis, TN
11,790

 
10,186

 
35,574

 
30,076

Nashville, TN
22,614

 
20,139

 
66,200

 
59,926

Orlando, FL
11,397

 
8,991

 
33,179

 
27,059

Pittsburgh, PA
14,831

 
14,259

 
44,099

 
42,030

Raleigh, NC
27,081

 
21,357

 
76,063

 
65,386

Richmond, VA
10,564

 
11,236

 
31,351

 
34,999

Tampa, FL
17,785

 
17,637

 
54,814

 
51,393

Total Office Segment
151,294

 
139,676

 
446,101

 
416,165

Retail:
 
 
 
 
 
 
 
Kansas City, MO
9,461

 
9,753

 
27,164

 
28,337

Total Retail Segment
9,461

 
9,753

 
27,164

 
28,337

Other
2,981

 
3,200

 
8,917

 
9,302

Total Rental and Other Revenues
$
163,736

 
$
152,629

 
$
482,182

 
$
453,804


14.
Segment Information - Continued

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Net Operating Income:
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
15,970

 
$
14,808

 
$
47,000

 
$
42,826

Greensboro, NC
3,275

 
4,105

 
10,217

 
12,352

Greenville, SC
—

 
289

 
—

 
1,154

Kansas City, MO
2,561

 
2,671

 
8,023

 
7,974

Memphis, TN
7,317

 
6,024

 
22,347

 
17,420

Nashville, TN
15,726

 
13,590

 
46,438

 
40,742

Orlando, FL
6,153

 
5,087

 
18,984

 
15,809

Pittsburgh, PA
8,840

 
8,122

 
25,472

 
23,303

Raleigh, NC
19,018

 
14,611

 
53,647

 
45,969

Richmond, VA
6,909

 
7,165

 
20,721

 
23,106

Tampa, FL
10,615

 
10,304

 
32,855

 
30,370

Total Office Segment
96,384

 
86,776

 
285,704

 
261,025

Retail:
 
 
 
 
 
 
 
Kansas City, MO
5,439

 
6,157

 
15,502

 
17,186

Total Retail Segment
5,439

 
6,157

 
15,502

 
17,186

Other
2,155

 
2,313

 
6,427

 
6,545

Total Net Operating Income
103,978

 
95,246

 
307,633

 
284,756

Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates:
 
 
 
 
 
 
 
Depreciation and amortization
(54,652
)
 
(48,287
)
 
(156,200
)
 
(146,895
)
Impairments of real estate assets
—

 
—

 
—

 
(588
)
General and administrative expenses
(9,182
)
 
(7,526
)
 
(29,511
)
 
(26,973
)
Interest expense
(21,512
)
 
(22,348
)
 
(64,937
)
 
(64,923
)
Other income
1,038

 
728

 
3,255

 
3,555

Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
$
19,670

 
$
17,813

 
$
60,240

 
$
48,932

Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies

On September 30, 2015, we announced our intent to list for sale all, or substantially all, of our wholly-owned portfolio in Kansas City, MO. Our wholly-owned assets in Kansas City, MO consist of 804,000 square feet of retail space and 617,000 square feet of office space. We intend to use the proceeds to repay debt incurred to effectively pay for our third quarter acquisitions of a building in Tampa, FL and two buildings in Atlanta, GA and for general corporate purposes. We expect to close on the disposition no later than early 2016 and, beginning in the fourth quarter of 2015 through the closing date, we will accrue $2.5 million of severance costs expected to be incurred due to our intent to close our Kansas City division office upon such sale.
Description of Business and Significant Accounting Policies (Policies)
Basis of Accounting, Policy [Policy Text Block] 
Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. All intercompany transactions and accounts have been eliminated.
Use of Estimates, Policy [Policy Text Block] 
Use of Estimates
 
The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates.
New Accounting Pronouncements, Policy [Policy Text Block] 
Recently Issued Accounting Standards

The Financial Accounting Standards Board ("FASB") recently issued an accounting standards update that requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that we identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when we satisfy the performance obligations. We will also be required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The accounting standards update is required to be adopted in 2018. Retrospective application is required either to all periods presented or with the cumulative effect of initial adoption recognized in the period of adoption. We are in the process of evaluating this accounting standards update.

The FASB recently issued an accounting standards update that amends consolidation requirements. The amendments significantly change the consolidation analysis required under GAAP and will require companies to reevaluate all previous consolidation conclusions. The accounting standards update is required to be adopted in 2016. We are in the process of evaluating this accounting standards update.

The FASB recently issued an accounting standards update that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The accounting standards update is required to be adopted in 2016. Retrospective application is required. We are in the process of evaluating this accounting standards update.
Description of Business and Significant Accounting Policies Description of Business and Significant Accounting Policies (Tables)
Schedule Of Retrospective Application Of The Equity Method Of Accounting [Table Text Block]
The effects of the retrospective application of the equity method of accounting to the Company's December 31, 2014 Balance Sheet were as follows:
 
 
December 31,
2014
 
Previously Reported
 
As Revised
Net real estate assets
$
3,481,406

 
$
3,452,006

Investments in and advances to unconsolidated affiliates
$
27,071

 
$
50,685

Total Assets
$
4,004,909

 
$
3,999,123

Financing obligations
$
23,519

 
$
8,962

Distributions in excess of net income available for common stockholders
$
(966,141
)
 
$
(957,370
)
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity
$
4,004,909

 
$
3,999,123

Real Estate Assets Real Estate Assets (Tables) (Pro Forma 2015 Acquisitions [Member])
Schedule of Business Acquisitions, Purchase Price Allocation [Table Text Block] 
The following table sets forth a summary of the fair value of the major assets acquired and liabilities assumed relating to the above-referenced acquisition of two buildings in Atlanta, GA during the third quarter of 2015:

 
Total
Purchase Price Allocation
Real estate assets
$
275,639

Acquisition-related intangible assets (in deferred financing and leasing costs)
23,722

Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)
(9,076
)
Total allocation
$
290,285

Schedule of Business Acquisitions, Pro Forma [Table Text Block] 
The following table sets forth the Company's revenues and net income, adjusted for interest expense, straight-line rental income, depreciation and amortization related to purchase price allocations and acquisition costs, assuming the above-referenced acquisition of two buildings in Atlanta, GA during the third quarter of 2015 had been completed as of January 1, 2013:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Pro forma revenues
$
171,247

 
$
159,944

 
$
505,107

 
$
477,120

Pro forma net income
$
33,354

 
$
54,176

 
$
80,647

 
$
92,019

Pro forma net income available for common stockholders
$
31,486

 
$
51,585

 
$
75,524

 
$
86,173

Pro forma earnings per share - basic
$
0.33

 
$
0.57

 
$
0.80

 
$
0.95

Pro forma earnings per share - diluted
$
0.33

 
$
0.57

 
$
0.80

 
$
0.95

Investments In and Advances To Unconsolidated Affiliates (Tables)
Schedule of Equity Method Investments Summarized Income Statement Information [Table Text Block]
The following table sets forth the summarized income statements of our unconsolidated affiliates:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Income Statements:
 
 
 
 
 
 
 
Rental and other revenues
$
12,323

 
$
12,425

 
$
36,977

 
$
37,703

Expenses:
 
 
 
 
 
 
 
Rental property and other expenses
5,985

 
6,441

 
17,683

 
18,880

Depreciation and amortization
3,193

 
3,281

 
9,418

 
10,098

Interest expense
1,645

 
2,201

 
5,826

 
6,713

Total expenses
10,823

 
11,923

 
32,927

 
35,691

Income before disposition of property
1,500

 
502

 
4,050

 
2,012

Gains on disposition of property
—

 
—

 
18,181

 
1,949

Net income
$
1,500

 
$
502

 
$
22,231

 
$
3,961

Intangible Assets and Below Market Lease Liabilities (Tables)
Total intangible assets and below market lease liabilities [Table Text Block] 
The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization:
 
 
September 30,
2015
 
December 31,
2014
Assets:
 
 
 
Deferred financing costs
$
19,935

 
$
19,478

Less accumulated amortization
(8,906
)
 
(7,953
)
 
11,029

 
11,525

Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)
359,377

 
322,094

Less accumulated amortization
(114,557
)
 
(104,851
)
 
244,820

 
217,243

Deferred financing and leasing costs, net
$
255,849

 
$
228,768

 
 
 
 
Liabilities (in accounts payable, accrued expenses and other liabilities):
 
 
 
Acquisition-related below market lease liabilities
$
65,002

 
$
55,783

Less accumulated amortization
(17,166
)
 
(13,548
)
 
$
47,836

 
$
42,235

Amortization of intangible assets and below market lease liabilities [Table Text Block] 
The following table sets forth amortization of intangible assets and below market lease liabilities:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Amortization of deferred financing costs
$
873

 
$
819

 
$
2,501

 
$
2,270

Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
$
11,176

 
$
9,465

 
$
31,638

 
$
29,443

Amortization of lease incentives (in rental and other revenues)
$
378

 
$
327

 
$
1,162

 
$
1,077

Amortization of acquisition-related intangible assets (in rental and other revenues)
$
1,414

 
$
1,080

 
$
3,769

 
$
3,310

Amortization of acquisition-related intangible assets (in rental property and other expenses)
$
140

 
$
140

 
$
416

 
$
416

Amortization of acquisition-related below market lease liabilities (in rental and other revenues)
$
(1,727
)
 
$
(1,532
)
 
$
(5,133
)
 
$
(4,554
)

Scheduled future amortization of intangible assets and below market lease liabilities [Table Text Block] 
The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:
 
 
 
Amortization of Deferred Financing Costs
 
Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)
 
Amortization of Lease Incentives (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses)
 
Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues)
October 1 through December 31, 2015
 
$
1,049

 
$
12,976

 
$
353

 
$
1,111

 
$
132

 
$
(1,888
)
2016
 
3,252

 
45,955

 
1,298

 
3,884

 
553

 
(6,997
)
2017
 
2,711

 
38,353

 
1,197

 
2,731

 
553

 
(6,653
)
2018
 
1,531

 
31,244

 
1,091

 
1,752

 
553

 
(6,216
)
2019
 
1,123

 
25,530

 
898

 
1,307

 
553

 
(5,740
)
Thereafter
 
1,363

 
65,865

 
2,845

 
3,553

 
533

 
(20,342
)
 
 
$
11,029

 
$
219,923

 
$
7,682

 
$
14,338

 
$
2,877

 
$
(47,836
)
Weighted average remaining amortization periods as of September 30, 2015 (in years)
 
4.0

 
6.7

 
7.9

 
6.1

 
5.2

 
8.1

Total Intangible Assets and Below Market Lease Liabilities from Acquisition Activity [Table Text Block] 
The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2015 acquisition activity:

 
 
Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues)
 
Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization)
 
Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues)
Amount recorded from acquisition activity
 
$
3,051

 
$
35,534

 
$
(10,733
)
Weighted average remaining amortization periods as of September 30, 2015 (in years)
 
4.9

 
5.5

 
9.7

Mortgages and Notes Payable (Tables)
Schedule of Consolidated Mortgages and Notes Payable [Table Text Block]
The following table sets forth our mortgages and notes payable:
 
 
September 30,
2015
 
December 31,
2014
Secured indebtedness
$
288,623

 
$
312,868

Unsecured indebtedness
2,190,130

 
1,758,521

Total mortgages and notes payable
$
2,478,753

 
$
2,071,389

Derivative Financial Instruments (Tables)
Schedule of Derivative Instruments, Fair Value [Table Text Block] 
The following table sets forth the fair value of our derivatives:
 
 
September 30,
2015
 
December 31,
2014
Derivatives:
 
 
 
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
 
 
 
Interest rate swaps
$
5,535

 
$
2,412

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] 
The following table sets forth the effect of our cash flow hedges on AOCL and interest expense:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Derivatives Designated as Cash Flow Hedges:
 
 
 
 
 
 
 
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
(3,021
)
 
$
913

 
$
(5,666
)
 
$
(3,337
)
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
932

 
$
952

 
$
2,781

 
$
2,824

Noncontrolling Interests (Tables) (Highwoods Properties, Inc. [Member])
Noncontrolling Interests in the Operating Partnership [Table Text Block] 
The following table sets forth the Company's noncontrolling interests in the Operating Partnership:
 
 
Nine Months Ended
September 30,
 
2015
 
2014
Beginning noncontrolling interests in the Operating Partnership
$
130,048

 
$
106,480

Adjustment of noncontrolling interests in the Operating Partnership to fair value
(14,649
)
 
8,955

Conversions of Common Units to Common Stock
(1,206
)
 
(162
)
Redemptions of Common Units
—

 
(93
)
Net income attributable to noncontrolling interests in the Operating Partnership
2,296

 
2,813

Distributions to noncontrolling interests in the Operating Partnership
(3,721
)
 
(3,745
)
Total noncontrolling interests in the Operating Partnership
$
112,768

 
$
114,248


Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Table Text Block] 
The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Net income available for common stockholders
$
29,749

 
$
51,708

 
$
74,220

 
$
86,541

Increase in additional paid in capital from conversions of Common Units
to Common Stock
—

 
—

 
1,206

 
162

Change from net income available for common stockholders and transfers from noncontrolling interests
$
29,749

 
$
51,708

 
$
75,426

 
$
86,703

Disclosure About Fair Value of Financial Instruments (Tables)
Fair Value Measurements of Assets, Liabilities and Noncontrolling Interests [Table Text Block] 
The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured at fair value within the fair value hierarchy.
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
 
Total
 
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
 
Significant Observable Inputs
 
Significant Unobservable Inputs
Fair Value at September 30, 2015:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
2,132

 
$
—

 
$
2,132

 
$
—

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
3,008

 
3,008

 
—

 
—

Tax increment financing bond (in prepaid expenses and other assets)
 
12,634

 
—

 
—

 
12,634

Total Assets
 
$
17,774

 
$
3,008

 
$
2,132

 
$
12,634

Noncontrolling Interests in the Operating Partnership
 
$
112,768

 
$
112,768

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, at fair value (1)
 
$
2,520,419

 
$
—

 
$
2,520,419

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
5,535

 
—

 
5,535

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
3,008

 
3,008

 
—

 
—

Financing obligation, at fair value (1)
 
7,283

 
—

 
—

 
7,283

Total Liabilities
 
$
2,536,245

 
$
3,008

 
$
2,525,954

 
$
7,283

Fair Value at December 31, 2014:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
13,142

 
$
—

 
$
2,247

 
$
10,895

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
3,635

 
3,635

 
—

 
—

Tax increment financing bond (in prepaid expenses and other assets)
 
12,447

 
—

 
—

 
12,447

Total Assets
 
$
29,224

 
$
3,635

 
$
2,247

 
$
23,342

Noncontrolling Interests in the Operating Partnership
 
$
130,048

 
$
130,048

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, at fair value (1)
 
$
2,141,334

 
$
—

 
$
2,141,334

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
2,412

 
—

 
2,412

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
3,635

 
3,635

 
—

 
—

Financing obligation, at fair value (as revised) (1)
 
8,623

 
—

 
—

 
8,623

Total Liabilities (as revised)
 
$
2,156,004

 
$
3,635

 
$
2,143,746

 
$
8,623


__________
(1)    Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2015 and December 31, 2014.
Fair Value Measurements, Unobservable Inputs Reconciliation [Table Text Block] 
The following table sets forth the changes in our Level 3 asset, which is recorded at fair value on our Consolidated Balance Sheets:

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Asset:
 
 
 
 
 
 
 
Tax Increment Financing Bond:
 
 
 
 
 
 
 
Beginning balance
$
12,641

 
$
13,673

 
$
12,447

 
$
13,403

Unrealized gains/(losses) (in AOCL)
(7
)
 
23

 
187

 
293

Ending balance
$
12,634

 
$
13,696

 
$
12,634

 
$
13,696

Fair Value Measurements, Valuation Techniques [Table Text Block] 
The following table sets forth quantitative information about the unobservable input of our Level 3 asset, which is recorded at fair value on our Consolidated Balance Sheets:
 
 
Valuation
Technique
 
Unobservable
Input
 
Rate as of
 
 
 
September 30,
2015
 
December 31,
2014
Asset:
 
 
 
 
 
 
 
Tax increment financing bond
Income approach
 
Discount rate
 
7.7%
 
8.4%
Accumulated Other Comprehensive Loss (Tables)
Components of Accumulated Other Comprehensive Loss [Table Text Block]
The following table sets forth the components of AOCL:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Tax increment financing bond:
 
 
 
 
 
 
 
Beginning balance
$
(251
)
 
$
(759
)
 
$
(445
)
 
$
(1,029
)
Unrealized gains/(losses) on tax increment financing bond
(7
)
 
23

 
187

 
293

Ending balance
(258
)
 
(736
)
 
(258
)
 
(736
)
Cash flow hedges:
 
 
 
 
 
 
 
Beginning balance
(4,263
)
 
(3,960
)
 
(3,467
)
 
(1,582
)
Unrealized gains/(losses) on cash flow hedges
(3,021
)
 
913

 
(5,666
)
 
(3,337
)
Amortization of cash flow hedges (1)
932

 
952

 
2,781

 
2,824

Ending balance
(6,352
)
 
(2,095
)
 
(6,352
)
 
(2,095
)
Total accumulated other comprehensive loss
$
(6,610
)

$
(2,831
)
 
$
(6,610
)
 
$
(2,831
)
__________
(1)    Amounts reclassified out of AOCL into contractual interest expense.
Real Estate and Other Assets Held For Sale (Tables)
Major Classes of Assets and Liabilities of the Properties Classified As Held For Sale [Table Text Block]
The following table sets forth the major classes of assets of our real estate and other assets, net, held for sale:

 
September 30,
2015
 
December 31,
2014
Assets:
 
 
 
Land held for development
$
2,606

 
$
995

Net real estate assets
2,606

 
995

Prepaid expenses and other assets
23

 
43

Real estate and other assets, net, held for sale
$
2,629

 
$
1,038

Earnings Per Share and Per Unit (Tables)
Earnings Per Share [Table Text Block] 
The following table sets forth the computation of basic and diluted earnings per share of the Company:

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Earnings per Common Share - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
31,617

 
$
54,299

 
$
79,343

 
$
92,003

Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
(918
)
 
(1,673
)
 
(2,296
)
 
(2,801
)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(324
)
 
(291
)
 
(948
)
 
(1,152
)
Dividends on Preferred Stock
(626
)
 
(627
)
 
(1,879
)
 
(1,881
)
Income from continuing operations available for common stockholders
29,749

 
51,708

 
74,220

 
86,169

Income from discontinued operations
—

 
—

 
—

 
384

Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
—

 
—

 
—

 
(12
)
Income from discontinued operations available for common stockholders
—

 
—

 
—

 
372

Net income available for common stockholders
$
29,749

 
$
51,708

 
$
74,220

 
$
86,541

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
94,693

 
90,668

 
93,996

 
90,299

Earnings per Common Share - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.31

 
$
0.57

 
$
0.79

 
$
0.96

Income from discontinued operations available for common stockholders
—

 
—

 
—

 
—

Net income available for common stockholders
$
0.31

 
$
0.57

 
$
0.79

 
$
0.96

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
31,617

 
$
54,299

 
$
79,343

 
$
92,003

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(324
)
 
(291
)
 
(948
)
 
(1,152
)
Dividends on Preferred Stock
(626
)
 
(627
)
 
(1,879
)
 
(1,881
)
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
30,667

 
53,381

 
76,516

 
88,970

Income from discontinued operations available for common stockholders
—

 
—

 
—

 
384

Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
$
30,667

 
$
53,381

 
$
76,516

 
$
89,354

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
94,693

 
90,668

 
93,996

 
90,299

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
58

 
118

 
89

 
121

Noncontrolling interests Common Units
2,910

 
2,937

 
2,918

 
2,938

Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) (2)
97,661

 
93,723

 
97,003

 
93,358

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.31

 
$
0.57

 
$
0.79

 
$
0.96

Income from discontinued operations available for common stockholders
—

 
—

 
—

 
—

Net income available for common stockholders
$
0.31

 
$
0.57

 
$
0.79

 
$
0.96

__________

 
13.
Earnings Per Share and Per Unit - Continued
(1)
There were 0.2 million options outstanding during both the three and nine months ended September 30, 2015 that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive. There were no such options outstanding during both the three and nine months ended September 30, 2014.
(2)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
Earnings Per Unit [Table Text Block] 
The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
31,617

 
$
54,299

 
$
79,343

 
$
92,003

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(324
)
 
(291
)
 
(948
)
 
(1,152
)
Distributions on Preferred Units
(626
)
 
(627
)
 
(1,879
)
 
(1,881
)
Income from continuing operations available for common unitholders
30,667

 
53,381

 
76,516

 
88,970

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
384

Net income available for common unitholders
$
30,667

 
$
53,381

 
$
76,516

 
$
89,354

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units
97,194

 
93,196

 
96,505

 
92,828

Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.32

 
$
0.57

 
$
0.79

 
$
0.96

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
—

Net income available for common unitholders
$
0.32

 
$
0.57

 
$
0.79

 
$
0.96

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
31,617

 
$
54,299

 
$
79,343

 
$
92,003

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(324
)
 
(291
)
 
(948
)
 
(1,152
)
Distributions on Preferred Units
(626
)
 
(627
)
 
(1,879
)
 
(1,881
)
Income from continuing operations available for common unitholders
30,667

 
53,381

 
76,516

 
88,970

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
384

Net income available for common unitholders
$
30,667

 
$
53,381

 
$
76,516

 
$
89,354

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units
97,194

 
93,196

 
96,505

 
92,828

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
58

 
118

 
89

 
121

Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) (2)
97,252

 
93,314

 
96,594

 
92,949

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.32

 
$
0.57

 
$
0.79

 
$
0.96

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
—

Net income available for common unitholders
$
0.32

 
$
0.57

 
$
0.79

 
$
0.96

__________
(1)
There were 0.2 million options outstanding during both the three and nine months ended September 30, 2015 that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive. There were no such options outstanding during both the three and nine months ended September 30, 2014.
(2)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
Segment Information (Tables)
Segment Information [Table Text Block]
The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Our segment information for the three and nine months ended September 30, 2014 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments.

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Rental and Other Revenues:
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
25,737

 
$
24,682

 
$
76,130

 
$
71,286

Greensboro, NC
5,288

 
6,439

 
16,126

 
19,469

Greenville, SC
—

 
532

 
—

 
2,140

Kansas City, MO
4,207

 
4,218

 
12,565

 
12,401

Memphis, TN
11,790

 
10,186

 
35,574

 
30,076

Nashville, TN
22,614

 
20,139

 
66,200

 
59,926

Orlando, FL
11,397

 
8,991

 
33,179

 
27,059

Pittsburgh, PA
14,831

 
14,259

 
44,099

 
42,030

Raleigh, NC
27,081

 
21,357

 
76,063

 
65,386

Richmond, VA
10,564

 
11,236

 
31,351

 
34,999

Tampa, FL
17,785

 
17,637

 
54,814

 
51,393

Total Office Segment
151,294

 
139,676

 
446,101

 
416,165

Retail:
 
 
 
 
 
 
 
Kansas City, MO
9,461

 
9,753

 
27,164

 
28,337

Total Retail Segment
9,461

 
9,753

 
27,164

 
28,337

Other
2,981

 
3,200

 
8,917

 
9,302

Total Rental and Other Revenues
$
163,736

 
$
152,629

 
$
482,182

 
$
453,804


14.
Segment Information - Continued

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Net Operating Income:
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
15,970

 
$
14,808

 
$
47,000

 
$
42,826

Greensboro, NC
3,275

 
4,105

 
10,217

 
12,352

Greenville, SC
—

 
289

 
—

 
1,154

Kansas City, MO
2,561

 
2,671

 
8,023

 
7,974

Memphis, TN
7,317

 
6,024

 
22,347

 
17,420

Nashville, TN
15,726

 
13,590

 
46,438

 
40,742

Orlando, FL
6,153

 
5,087

 
18,984

 
15,809

Pittsburgh, PA
8,840

 
8,122

 
25,472

 
23,303

Raleigh, NC
19,018

 
14,611

 
53,647

 
45,969

Richmond, VA
6,909

 
7,165

 
20,721

 
23,106

Tampa, FL
10,615

 
10,304

 
32,855

 
30,370

Total Office Segment
96,384

 
86,776

 
285,704

 
261,025

Retail:
 
 
 
 
 
 
 
Kansas City, MO
5,439

 
6,157

 
15,502

 
17,186

Total Retail Segment
5,439

 
6,157

 
15,502

 
17,186

Other
2,155

 
2,313

 
6,427

 
6,545

Total Net Operating Income
103,978

 
95,246

 
307,633

 
284,756

Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates:
 
 
 
 
 
 
 
Depreciation and amortization
(54,652
)
 
(48,287
)
 
(156,200
)
 
(146,895
)
Impairments of real estate assets
—

 
—

 
—

 
(588
)
General and administrative expenses
(9,182
)
 
(7,526
)
 
(29,511
)
 
(26,973
)
Interest expense
(21,512
)
 
(22,348
)
 
(64,937
)
 
(64,923
)
Other income
1,038

 
728

 
3,255

 
3,555

Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
$
19,670

 
$
17,813

 
$
60,240

 
$
48,932

Description of Business and Significant Accounting Policies (Details) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Jun. 30, 2015
Sep. 30, 2015
sqft
acre
Sep. 30, 2014
Dec. 31, 2014
Sep. 30, 2015
Highwoods Properties, Inc. [Member]
Dec. 31, 2014
Highwoods Properties, Inc. [Member]
Dec. 31, 2014
Highwoods Properties, Inc. [Member]
Previously Reported Disclosure [Member]
Dec. 31, 2014
Highwoods Properties, Inc. [Member]
Revised Disclosure [Member]
Sep. 30, 2015
Highwoods Properties, Inc. [Member]
ATM Equity Offering [Member]
Sep. 30, 2015
Highwoods Properties, Inc. [Member]
ATM Equity Offering [Member]
Sep. 30, 2015
Highwoods Realty Limited Partnership [Member]
Dec. 31, 2014
Highwoods Realty Limited Partnership [Member]
Description of Business and Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Rentable square feet of commercial real estate properties (in sq feet)
 
32,500,000 
 
 
 
 
 
 
 
 
 
 
Rentable square feet of commercial real estate properties under development (in sq feet)
 
1,400,000 
 
 
 
 
 
 
 
 
 
 
Undeveloped land suitable for development (in acres)
 
500 
 
 
 
 
 
 
 
 
 
 
Common Units of partnership owned by the Company (in shares)
 
 
 
 
94,900,000 
 
 
 
 
 
 
 
Percentage of ownership of Common Units (in hundredths)
 
 
 
 
97.00% 
96.90% 
 
 
 
 
 
 
Common Units of partnership not owned by the Company (in shares)
 
 
 
 
 
 
 
 
 
 
2,900,000 
 
Common Units redeemed for a like number of common shares of stock (in shares)
 
26,820 
 
 
 
 
 
 
 
 
 
 
Number of Common Stock sold during the period (in shares)
 
 
 
 
 
 
 
 
1,206,200 
2,178,859 
 
 
Average price of Common Stock sold during the period (in dollars per share)
 
 
 
 
 
 
 
 
$ 41.89 
$ 43.33 
 
 
Net proceeds of Common Stock sold during the period
 
$ 93,216,000 
$ 45,922,000 
 
 
 
 
 
$ 49,800,000 
$ 93,000,000 
 
 
Joint venture partner's interest in unconsolidated affiliate (in hundredths)
 
80.00% 
 
 
 
 
 
 
 
 
 
 
Gain recognized on partial sale
2,200,000 
 
 
 
 
 
 
 
 
 
 
 
Net real estate assets
 
3,929,323,000 
 
3,452,006,000 
 
 
3,481,406,000 
3,452,006,000 
 
 
3,929,323,000 
3,452,006,000 
Investments in and advances to unconsolidated affiliates
 
20,674,000 
 
50,685,000 
 
 
27,071,000 
50,685,000 
 
 
20,674,000 
50,685,000 
Total Assets
 
4,462,695,000 
 
3,999,123,000 
 
 
4,004,909,000 
3,999,123,000 
 
 
4,462,695,000 
3,999,229,000 
Financing obligation
 
7,402,000 
 
8,962,000 
 
 
23,519,000 
8,962,000 
 
 
7,402,000 
8,962,000 
Distributions in excess of net income available for common stockholders
 
(1,002,879,000)
 
(957,370,000)
 
 
(966,141,000)
(957,370,000)
 
 
 
 
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity
 
$ 4,462,695,000 
 
$ 3,999,123,000 
 
 
$ 4,004,909,000 
$ 3,999,123,000 
 
 
$ 4,462,695,000 
$ 3,999,229,000 
Real Estate Assets (Details) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Tampa, FL Building Acquisition (09/2015) [Member]
sqft
Sep. 30, 2015
Tampa, FL Land Acquisition (09/2015) [Member]
Sep. 30, 2015
Atlanta, GA Building Acquisition (09/2015) [Member]
property
sqft
Jun. 30, 2015
Atlanta, GA Land Acquisition [Member] (6/2015) [Member]
Jun. 30, 2015
Orlando, FL Building Acquisition [Member] (6/2015) [Member]
sqft
Sep. 30, 2015
Building Dispositions [Member]
Mar. 31, 2015
Building Dispositions [Member]
property
Sep. 30, 2015
Land Dispositions [Member]
Jun. 30, 2015
Land Dispositions [Member]
Mar. 31, 2015
Land Dispositions [Member]
Acquisitions [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition rentable square feet (in sq. ft.)
 
 
 
 
528,000 
 
896,000 
 
168,000 
 
 
 
 
 
Number of office properties acquired
 
 
 
 
 
 
2 
 
 
 
 
 
 
 
Purchase price of acquisition
 
 
 
 
$ 113,500,000 
$ 2,200,000 
$ 290,300,000 
$ 5,200,000 
 
 
 
 
 
 
Percentage of equity interest acquired in unconsolidated affiliate (in hundredths)
 
 
 
 
 
 
 
 
77.20% 
 
 
 
 
 
Contingent consideration in connection with the acquisition of land
 
 
900,000 
0 
 
 
 
900,000 
 
 
 
 
 
 
Fair value of debt assumed in connection with the acquisition
 
 
 
 
 
 
 
 
19,300,000 
 
 
 
 
 
Acquisition-related costs
900,000 
 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
Dispositions [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of buildings sold
 
 
 
 
 
 
 
 
 
 
2 
 
 
 
Purchase price of real estate
 
 
 
 
 
 
 
 
 
15,300,000 
3,500,000 
1,800,000 
500,000 
2,500,000 
Gain on disposition of property
$ 7,012,000 
$ 36,238,000 
$ 10,581,000 
$ 42,185,000 
 
 
 
 
 
$ 6,500,000 
$ 400,000 
$ 500,000 
$ 200,000 
$ 800,000 
Real Estate Assets Real Estate Assets Pro Forma (Details) (Pro Forma 2015 Acquisitions [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
 
 
 
 
Real estate assets
$ 275,639 
 
$ 275,639 
 
Acquisition-related intangible assets (in deferred financing and leasing costs)
23,722 
 
23,722 
 
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)
(9,076)
 
(9,076)
 
Total allocation
290,285 
 
290,285 
 
Highwoods Properties, Inc. [Member]
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
 
 
 
 
Proforma assumption date of acquisition
Jan. 01, 2013 
 
 
 
Business Acquisition, Pro Forma Information [Abstract]
 
 
 
 
Pro forma revenues
171,247 
159,944 
505,107 
477,120 
Pro forma net income
33,354 
54,176 
80,647 
92,019 
Pro forma net income available for common stockholders
$ 31,486 
$ 51,585 
$ 75,524 
$ 86,173 
Pro forma earnings per share - basic
$ 0.33 
$ 0.57 
$ 0.80 
$ 0.95 
Pro forma earnings per share - diluted
$ 0.33 
$ 0.57 
$ 0.80 
$ 0.95 
Mortgages and Notes Receivable (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Dec. 31, 2014
Jun. 30, 2015
Mortgages Receivable [Member]
Schedule of mortgages and notes receivable [Abstract]
 
 
 
 
Mortgages and notes receivable, net
$ 2,132 
 
$ 13,116 
 
Repayment of secured acquisition financing
$ 9,301 
$ 16,974 
 
$ 9,900 
Investments In and Advances To Unconsolidated Affiliates (Details) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
SF-Harborview Plaza, LP Joint Venture [Member]
Jun. 30, 2015
Highwoods DLF 98/29, LLC Joint Venture [Member]
Jun. 30, 2015
Highwoods KC Glenridge Office, LLC Joint Venture [Member]
property
Mar. 31, 2015
Highwoods DLF 97/26 DLF 99/32, LP Joint Venture [Member]
Income Statements:
 
 
 
 
 
 
 
 
Rental and other revenues
$ 12,323,000 
$ 12,425,000 
$ 36,977,000 
$ 37,703,000 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
Rental property and other expenses
5,985,000 
6,441,000 
17,683,000 
18,880,000 
 
 
 
 
Depreciation and amortization
3,193,000 
3,281,000 
9,418,000 
10,098,000 
 
 
 
 
Interest expense
1,645,000 
2,201,000 
5,826,000 
6,713,000 
 
 
 
 
Total expenses
10,823,000 
11,923,000 
32,927,000 
35,691,000 
 
 
 
 
Income before disposition of property
1,500,000 
502,000 
4,050,000 
2,012,000 
 
 
 
 
Gains on disposition of property
0 
0 
18,181,000 
1,949,000 
 
13,700,000 
2,400,000 
2,100,000 
Net income
1,500,000 
502,000 
22,231,000 
3,961,000 
 
 
 
 
Percentage of equity interest in joint ventures, maximum (in hundredths)
50.00% 
 
50.00% 
 
20.00% 
 
 
 
Number of buildings sold
 
 
 
 
 
 
2 
 
Proceeds received from disposition of property
 
 
 
 
6,900,000 
 
24,500,000 
7,000,000 
Gain recorded on disposition of investment in unconsolidated affiliate
4,155,000 
0 
4,155,000 
0 
4,200,000 
 
 
 
Advances to affiliate loan amount
 
 
 
 
20,800,000 
 
 
 
Closing credits for unfunded tenant improvements
 
 
 
 
 
 
300,000 
 
Our share of gains on disposition of property
 
 
 
 
 
$ 3,100,000 
$ 900,000 
$ 1,100,000 
Intangible Assets and Below Market Lease Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Dec. 31, 2014
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, accumulated amortization
$ (123,463)
 
$ (123,463)
 
$ (112,804)
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
255,849 
 
255,849 
 
228,768 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Acquired intangible assets (amortized in rental and other revenue)
3,051 
 
3,051 
 
 
Acquired intangible assets (amortized in depreciation and amortization)
35,534 
 
35,534 
 
 
Assumed below market lease liabilities (amortized in rental and other revenue)
(10,733)
 
(10,733)
 
 
Deferred Financing Costs [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, gross
19,935 
 
19,935 
 
19,478 
Deferred financing and leasing costs, accumulated amortization
(8,906)
 
(8,906)
 
(7,953)
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
11,029 
 
11,029 
 
11,525 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
873 
819 
2,501 
2,270 
 
Deferred Leasing Costs [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, gross
359,377 
 
359,377 
 
322,094 
Deferred financing and leasing costs, accumulated amortization
(114,557)
 
(114,557)
 
(104,851)
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
244,820 
 
244,820 
 
217,243 
Deferred Leasing Costs and Acquisition-Related Intangible Assets [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
219,923 
 
219,923 
 
 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
11,176 
9,465 
31,638 
29,443 
 
Lease Incentives [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
7,682 
 
7,682 
 
 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
378 
327 
1,162 
1,077 
 
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
14,338 
 
14,338 
 
 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
1,414 
1,080 
3,769 
3,310 
 
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
2,877 
 
2,877 
 
 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
140 
140 
416 
416 
 
Acquisition-Related Below Market Lease Liabilities [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Acquisition-related below market lease liabilities, gross
65,002 
 
65,002 
 
55,783 
Acquisition-related below market lease liabilities, accumulated amortization
(17,166)
 
(17,166)
 
(13,548)
Acquisition-related below market lease liabilities, net
47,836 
 
47,836 
 
42,235 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of acquisition-related below market lease liabilities
$ (1,727)
$ (1,532)
$ (5,133)
$ (4,554)
 
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Scheduled future amortization of intangible assets [Abstract]
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
$ 255,849 
$ 228,768 
Deferred Financing Costs [Member]
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
October 1, 2015 through December 31, 2015
1,049 
 
2016
3,252 
 
2017
2,711 
 
2018
1,531 
 
2019
1,123 
 
Thereafter
1,363 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
11,029 
11,525 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
Finite-lived intangible assets, average useful life (in years)
4 years 
 
Deferred Leasing Costs and Acquisition-Related Intangible Assets [Member]
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
October 1, 2015 through December 31, 2015
12,976 
 
2016
45,955 
 
2017
38,353 
 
2018
31,244 
 
2019
25,530 
 
Thereafter
65,865 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
219,923 
 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
Finite-lived intangible assets, average useful life (in years)
6 years 8 months 
 
Lease Incentives [Member]
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
October 1, 2015 through December 31, 2015
353 
 
2016
1,298 
 
2017
1,197 
 
2018
1,091 
 
2019
898 
 
Thereafter
2,845 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
7,682 
 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
Finite-lived intangible assets, average useful life (in years)
7 years 11 months 
 
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member]
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
October 1, 2015 through December 31, 2015
1,111 
 
2016
3,884 
 
2017
2,731 
 
2018
1,752 
 
2019
1,307 
 
Thereafter
3,553 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
14,338 
 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
Finite-lived intangible assets, average useful life (in years)
6 years 1 month 
 
Acquired finite-lived intangible assets, weighted average useful life (in years)
4 years 11 months 
 
Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization) [Member]
 
 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
Acquired finite-lived intangible assets, weighted average useful life (in years)
5 years 6 months 
 
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member]
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
October 1, 2015 through December 31, 2015
132 
 
2016
553 
 
2017
553 
 
2018
553 
 
2019
553 
 
Thereafter
533 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
2,877 
 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
Finite-lived intangible assets, average useful life (in years)
5 years 2 months 
 
Acquisition-Related Below Market Lease Liabilities [Member]
 
 
Scheduled future amortization of below market lease liabilities [Abstract]
 
 
October 1, 2015 through December 31, 2015
(1,888)
 
2016
(6,997)
 
2017
(6,653)
 
2018
(6,216)
 
2019
(5,740)
 
Thereafter
(20,342)
 
Total scheduled future amortization of acquisition-related below market lease liabilities
$ (47,836)
$ (42,235)
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
Finite-lived below market lease liabilities, average useful life (in years)
8 years 1 month 
 
Assumed finite-lived below market lease liabilities, weighted average useful life (in years)
9 years 8 months 
 
Mortgages and Notes Payable (Details) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Dec. 31, 2014
Sep. 30, 2015
Revolving Credit Facility due 2018 [Member]
extensions
Sep. 30, 2015
Revolving Credit Facility due 2018 [Member]
Sep. 30, 2015
Bridge Term Loan Facility due 2016 [Member]
Sep. 30, 2015
Bridge Term Loan Facility due 2016 [Member]
Jun. 30, 2015
Variable Rate Term Loan (2) due 2019 [Member]
Jun. 30, 2015
Variable Rate Term Loan due 2020 [Member]
Jun. 30, 2015
5.17% (6.43% effective rate) Mortage Loan due 2015 [Member]
Jun. 30, 2015
6.11% (5.36% effective rate) Mortgage Loan due 2017 (Note A) [Member]
Jun. 30, 2015
6.11% (8.60% effective rate) Mortgage Loan due 2017 (Note B) [Member]
Sep. 30, 2015
Secured indebtedness [Member]
Dec. 31, 2014
Secured indebtedness [Member]
Sep. 30, 2015
Unsecured indebtedness [Member]
Dec. 31, 2014
Unsecured indebtedness [Member]
Oct. 20, 2015
Subsequent Event [Member]
Revolving Credit Facility due 2018 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgages and notes payable
$ 2,478,753,000 
 
$ 2,478,753,000 
 
$ 2,071,389,000 
 
 
 
 
 
 
 
 
 
$ 288,623,000 
$ 312,868,000 
$ 2,190,130,000 
$ 1,758,521,000 
 
Aggregate undepreciated book value of secured real estate assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
547,200,000 
 
 
 
 
Maximum borrowing capacity on revolving credit facility
 
 
 
 
 
475,000,000 
475,000,000 
350,000,000 
350,000,000 
 
 
 
 
 
 
 
 
 
 
Maturity date on revolving credit facility
 
 
 
 
 
 
Jan. 01, 2018 
 
Mar. 28, 2016 
 
 
 
 
 
 
 
 
 
 
Additional borrowing capacity on revolving credit facility
 
 
 
 
 
75,000,000 
75,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Number of additional maturity extensions
 
 
 
 
 
2 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term of optional extension
 
 
 
 
 
6 months 
 
6 months 
 
 
 
 
 
 
 
 
 
 
 
Facility interest rate basis
 
 
 
 
 
LIBOR plus 110 basis points 
 
LIBOR plus 110 basis points 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread (in hundredths)
 
 
 
 
 
1.10% 
 
1.10% 
 
1.75% 
1.10% 
 
 
 
 
 
 
 
 
Annual facility fee (in hundredths)
 
 
 
 
 
0.20% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount outstanding on revolving credit facility
 
 
 
 
 
265,000,000 
265,000,000 
250,000,000 
250,000,000 
 
 
 
 
 
 
 
 
 
276,000,000 
Outstanding letters of credit on revolving credit facility
 
 
 
 
 
200,000 
200,000 
 
 
 
 
 
 
 
 
 
 
 
200,000 
Unused borrowing capacity on revolving credit facility
 
 
 
 
 
209,800,000 
209,800,000 
100,000,000 
100,000,000 
 
 
 
 
 
 
 
 
 
198,800,000 
Principal debt amount
 
 
 
 
 
 
 
 
 
225,000,000 
350,000,000 
 
18,000,000 
10,200,000 
 
 
 
 
 
Term of debt instrument
 
 
 
 
 
 
 
6 months 
 
7 years 
 
 
 
 
 
 
 
 
 
Early repayment of debt
 
 
 
 
 
 
 
 
 
 
 
39,400,000 
 
 
 
 
 
 
 
Scheduled maturity date
 
 
 
 
 
 
 
 
 
Jan. 01, 2019 
Jun. 01, 2020 
Nov. 01, 2015 
Jul. 06, 2017 
Jul. 06, 2017 
 
 
 
 
 
Debt, variable interest rate basis
 
 
 
 
 
 
 
 
 
LIBOR plus 175 basis points 
LIBOR plus 110 basis points 
 
 
 
 
 
 
 
 
Effective interest rate (in hundredths)
 
 
 
 
 
 
 
 
 
 
 
6.43% 
5.36% 
8.60% 
 
 
 
 
 
Deferred financing fees
 
 
 
 
 
 
 
 
 
 
1,300,000 
 
 
 
 
 
 
 
 
Loss on debt extinguishment
0 
(326,000)
(220,000)
(308,000)
 
 
 
 
 
 
 
200,000 
 
 
 
 
 
 
 
Percentage of equity interest acquired in unconsolidated affiliate (in hundredths)
 
 
 
 
 
 
 
 
 
 
 
 
77.20% 
 
 
 
 
 
 
Amount of funded capital expenditures reserve
19,310,000 
 
19,310,000 
 
14,595,000 
 
 
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
Mortgage prepayment date
 
 
 
 
 
 
 
 
 
 
 
 
Oct. 06, 2016 
Oct. 06, 2016 
 
 
 
 
 
Percentage of excess funds after waterfall payments (in hundredths)
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
Stated return on funds deposited in escrow (in hundredths)
 
 
 
 
 
 
 
 
 
 
 
 
 
10.00% 
 
 
 
 
 
Fair value of debt assumed in connection with the acquisition
 
 
 
 
 
 
 
 
 
 
 
 
$ 18,300,000 
$ 1,000,000 
 
 
 
 
 
Derivative Financial Instruments (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
 
 
 
 
Expected increase to interest expense
$ 2,900,000 
 
$ 2,900,000 
 
 
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities [Abstract]
 
 
 
 
 
Interest rate swaps
5,535,000 
 
5,535,000 
 
2,412,000 
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion) [Abstract]
 
 
 
 
 
Interest rate swaps
(3,021,000)
913,000 
(5,666,000)
(3,337,000)
 
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion) [Abstract]
 
 
 
 
 
Interest rate swaps
$ 932,000 
$ 952,000 
$ 2,781,000 
$ 2,824,000 
 
Noncontrolling Interests (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Noncontrolling Interests in Consolidated Affiliates [Abstract]
 
 
 
 
Consolidated joint venture, partner's interest (in hundredths)
50.00% 
 
50.00% 
 
Noncontrolling Interests in the Operating Partnership [Roll Forward]
 
 
 
 
Beginning noncontrolling interests in the Operating Partnership
 
 
$ 130,048 
 
Adjustment of noncontrolling interests in the Operating Partnership to fair value
 
 
(14,649)
8,955 
Conversions of Common Units to Common Stock
 
 
(1,206)
(162)
Redemptions of Common Units
 
 
0 
(93)
Net income attributable to noncontrolling interests in the Operating Partnership
918 
1,673 
2,296 
2,813 
Distributions to noncontrolling interests in the Operating Partnership
 
 
(3,721)
(3,745)
Total noncontrolling interests in the Operating Partnership
112,768 
 
112,768 
 
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract]
 
 
 
 
Net income available for common stockholders
29,749 
51,708 
74,220 
86,541 
Highwoods Properties, Inc. [Member]
 
 
 
 
Noncontrolling Interests in the Operating Partnership [Roll Forward]
 
 
 
 
Beginning noncontrolling interests in the Operating Partnership
 
 
130,048 
106,480 
Adjustment of noncontrolling interests in the Operating Partnership to fair value
 
 
(14,649)
8,955 
Conversions of Common Units to Common Stock
 
 
(1,206)
(162)
Redemptions of Common Units
 
 
0 
(93)
Net income attributable to noncontrolling interests in the Operating Partnership
 
 
2,296 
2,813 
Distributions to noncontrolling interests in the Operating Partnership
 
 
(3,721)
(3,745)
Total noncontrolling interests in the Operating Partnership
112,768 
114,248 
112,768 
114,248 
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract]
 
 
 
 
Net income available for common stockholders
29,749 
51,708 
74,220 
86,541 
Increase in additional paid in capital from conversions of Common Units to Common Stock
0 
0 
1,206 
162 
Change from net income available for common stockholders and transfers from noncontrolling interests
$ 29,749 
$ 51,708 
$ 75,426 
$ 86,703 
Disclosure About Fair Value of Financial Instruments - Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Assets:
 
 
Mortgages and notes receivable, at fair value
$ 2,132 1
$ 13,142 1
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
3,008 
3,635 
Tax increment financing bond (in prepaid expenses and other assets)
12,634 
12,447 
Total Assets
17,774 
29,224 
Liabilities:
 
 
Mortgages and notes payable, at fair value
2,520,419 1
2,141,334 1
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
5,535 
2,412 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
3,008 
3,635 
Financing obligation, at fair value
7,283 1
8,623 1
Total Liabilities
2,536,245 
2,156,004 
Level 1 [Member]
 
 
Assets:
 
 
Mortgages and notes receivable, at fair value
0 1
0 1
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
3,008 
3,635 
Tax increment financing bond (in prepaid expenses and other assets)
0 
0 
Total Assets
3,008 
3,635 
Liabilities:
 
 
Mortgages and notes payable, at fair value
0 1
0 1
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
0 
0 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
3,008 
3,635 
Financing obligation, at fair value
0 1
0 1
Total Liabilities
3,008 
3,635 
Level 2 [Member]
 
 
Assets:
 
 
Mortgages and notes receivable, at fair value
2,132 1
2,247 1
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
0 
0 
Tax increment financing bond (in prepaid expenses and other assets)
0 
0 
Total Assets
2,132 
2,247 
Liabilities:
 
 
Mortgages and notes payable, at fair value
2,520,419 1
2,141,334 1
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
5,535 
2,412 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
0 
0 
Financing obligation, at fair value
0 1
0 1
Total Liabilities
2,525,954 
2,143,746 
Level 3 [Member]
 
 
Assets:
 
 
Mortgages and notes receivable, at fair value
0 1
10,895 1
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
0 
0 
Tax increment financing bond (in prepaid expenses and other assets)
12,634 
12,447 
Total Assets
12,634 
23,342 
Liabilities:
 
 
Mortgages and notes payable, at fair value
0 1
0 1
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
0 
0 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
0 
0 
Financing obligation, at fair value
7,283 1
8,623 1
Total Liabilities
7,283 
8,623 
Highwoods Properties, Inc. [Member]
 
 
Assets:
 
 
Noncontrolling Interests in the Operating Partnership
112,768 
130,048 
Highwoods Properties, Inc. [Member] |
Level 1 [Member]
 
 
Assets:
 
 
Noncontrolling Interests in the Operating Partnership
112,768 
130,048 
Highwoods Properties, Inc. [Member] |
Level 2 [Member]
 
 
Assets:
 
 
Noncontrolling Interests in the Operating Partnership
0 
0 
Highwoods Properties, Inc. [Member] |
Level 3 [Member]
 
 
Assets:
 
 
Noncontrolling Interests in the Operating Partnership
$ 0 
$ 0 
Disclosure About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Dec. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
Unrealized gains/(losses) (in AOCL)
 
 
$ 187,000 
$ 293,000 
 
Tax Increment Financing Bond [Member]
 
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
Beginning balance
12,641,000 
13,673,000 
12,447,000 
13,403,000 
13,403,000 
Unrealized gains/(losses) (in AOCL)
(7,000)
23,000 
187,000 
293,000 
 
Ending balance
12,634,000 
13,696,000 
12,634,000 
13,696,000 
12,447,000 
Maturity date
 
 
Dec. 20, 2020 
 
 
Amount by which outstanding principal amount exceeds estimated fair value
 
 
300,000 
 
 
Change in discount rate (in hundredths)
1.00% 
 
 
 
 
Discount rate (in hundredths)
 
 
7.70% 
 
8.40% 
Tax Increment Financing Bond [Member] |
Minimum [Member]
 
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
Change in fair value of bond if discount rate changes
300,000 
 
300,000 
 
 
Tax Increment Financing Bond [Member] |
Maximum [Member]
 
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
Change in fair value of bond if discount rate changes
$ 300,000 
 
$ 300,000 
 
 
Share-Based Payments (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Stock-based compensation expense
$ 900,000 
$ 798,000 
$ 5,996,000 
$ 6,179,000 
Total unrecognized stock-based compensation costs
$ 5,800,000 
 
$ 5,800,000 
 
Weighted average remaining contractual term for recognition of unrecognized stock-based compensation costs (in years)
 
 
2 years 4 months 25 days 
 
Highwoods Properties, Inc. [Member] |
Stock Options [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Stock options granted
 
 
197,408 
 
Weighted average grant date fair value of each stock option granted (in dollars per option)
 
 
$ 6.19 
 
Highwoods Properties, Inc. [Member] |
Time-Based Restricted Stock [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Restricted stock shares granted
 
 
71,994 
 
Weighted average grant date fair value of each restricted stock granted (in dollars per share)
 
 
$ 45.91 
 
Highwoods Properties, Inc. [Member] |
Total Return-Based Restricted Stock [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Restricted stock shares granted
 
 
56,957 
 
Weighted average grant date fair value of each restricted stock granted (in dollars per share)
 
 
$ 43.77 
 
Accumulated Other Comprehensive Loss (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Sep. 30, 2014
Sep. 30, 2015
Tax Increment Financing Bond [Member]
Sep. 30, 2014
Tax Increment Financing Bond [Member]
Sep. 30, 2015
Tax Increment Financing Bond [Member]
Sep. 30, 2014
Tax Increment Financing Bond [Member]
Sep. 30, 2015
Cash Flow Hedges [Member]
Sep. 30, 2014
Cash Flow Hedges [Member]
Sep. 30, 2015
Cash Flow Hedges [Member]
Sep. 30, 2014
Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$ (6,610)
$ (3,912)
$ (2,831)
$ (251)
$ (759)
$ (445)
$ (1,029)
$ (4,263)
$ (3,960)
$ (3,467)
$ (1,582)
Unrealized gains/(losses)
 
 
 
(7)
23 
187 
293 
(3,021)
913 
(5,666)
(3,337)
Amortization reclassified out of AOCL
 
 
 
 
 
 
 
932 1
952 1
2,781 1
2,824 1
Ending balance
$ (6,610)
$ (3,912)
$ (2,831)
$ (258)
$ (736)
$ (258)
$ (736)
$ (6,352)
$ (2,095)
$ (6,352)
$ (2,095)
Real Estate and Other Assets Held For Sale (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Assets, held for sale [Abstract]
 
 
Land held for development
$ 2,606 
$ 995 
Net real estate assets
2,606 
995 
Prepaid expenses and other assets
23 
43 
Real estate and other assets, net, held for sale
$ 2,629 
$ 1,038 
Earnings Per Share and Per Unit (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Numerator:
 
 
 
 
Income from continuing operations
$ 31,617 
$ 54,299 
$ 79,343 
$ 92,003 
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
(918)
(1,673)
(2,296)
(2,801)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(324)
(291)
(948)
(1,152)
Dividends on Preferred Stock
(626)
(627)
(1,879)
(1,881)
Income from continuing operations available for common stockholders
29,749 
51,708 
74,220 
86,169 
Income from discontinued operations
0 
0 
0 
384 
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
0 
0 
0 
(12)
Income from discontinued operations available for common stockholders
0 
0 
0 
372 
Net income available for common stockholders
29,749 
51,708 
74,220 
86,541 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Share - weighted average shares (in shares)
94,693 
90,668 
93,996 
90,299 
Earnings per Common Share - basic:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.31 
$ 0.57 
$ 0.79 
$ 0.96 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
Net income available for common stockholders (in dollars per share)
$ 0.31 
$ 0.57 
$ 0.79 
$ 0.96 
Numerator:
 
 
 
 
Income from continuing operations
31,617 
54,299 
79,343 
92,003 
Net (income) attributable to noncontrolling interests in consolidated affiliates
(324)
(291)
(948)
(1,152)
Dividends on Preferred Stock
(626)
(627)
(1,879)
(1,881)
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
30,667 
53,381 
76,516 
88,970 
Income from discontinued operations available for common stockholders
0 
0 
0 
384 
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
30,667 
53,381 
76,516 
89,354 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Share - weighted average shares (in shares)
94,693 
90,668 
93,996 
90,299 
Stock options using the treasury method
58 
118 
89 
121 
Noncontrolling interests Common Units
2,910 
2,937 
2,918 
2,938 
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares)
97,661 1 2
93,723 1 2
97,003 1 2
93,358 1 2
Earnings per Common Share - diluted:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.31 
$ 0.57 
$ 0.79 
$ 0.96 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
Net income available for common stockholders (in dollars per share)
$ 0.31 
$ 0.57 
$ 0.79 
$ 0.96 
Earnings Per Share and Per Unit, Basic and Diluted, Other Disclosures [Abstract]
 
 
 
 
Number of anti-dilutive options and warrants not included in earnings per share (in shares)
200 
0 
200 
0 
Highwoods Realty Limited Partnership [Member]
 
 
 
 
Numerator:
 
 
 
 
Income from continuing operations
31,617 
54,299 
79,343 
92,003 
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(324)
(291)
(948)
(1,152)
Distributions on Preferred Units
(626)
(627)
(1,879)
(1,881)
Income from continuing operations available for common unitholders
30,667 
53,381 
76,516 
88,970 
Income from discontinued operations available for common unitholders
0 
0 
0 
384 
Net income available for common unitholders
30,667 
53,381 
76,516 
89,354 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Unit - weighted average units (in shares)
97,194 
93,196 
96,505 
92,828 
Earnings per Common Unit - basic:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.32 
$ 0.57 
$ 0.79 
$ 0.96 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
Net income available for common unitholders (in dollars per share)
$ 0.32 
$ 0.57 
$ 0.79 
$ 0.96 
Numerator:
 
 
 
 
Income from continuing operations
31,617 
54,299 
79,343 
92,003 
Net (income) attributable to noncontrolling interests in consolidated affiliates
(324)
(291)
(948)
(1,152)
Distributions on Preferred Units
(626)
(627)
(1,879)
(1,881)
Income from continuing operations available for common unitholders
30,667 
53,381 
76,516 
88,970 
Income from discontinued operations available for common unitholders
0 
0 
0 
384 
Net income available for common unitholders
$ 30,667 
$ 53,381 
$ 76,516 
$ 89,354 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Unit - weighted average units (in shares)
97,194 
93,196 
96,505 
92,828 
Stock options using the treasury method
58 
118 
89 
121 
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares)
97,252 2 3
93,314 2 3
96,594 2 3
92,949 2 3
Earnings per Common Unit - diluted:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.32 
$ 0.57 
$ 0.79 
$ 0.96 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
Net income available for common unitholders (in dollars per share)
$ 0.32 
$ 0.57 
$ 0.79 
$ 0.96 
Earnings Per Share and Per Unit, Basic and Diluted, Other Disclosures [Abstract]
 
 
 
 
Number of anti-dilutive options and warrants not included in earnings per share (in shares)
200 
0 
200 
0 
Segment Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
$ 163,736 
$ 152,629 
$ 482,182 
$ 453,804 
Total Net Operating Income
103,978 
95,246 
307,633 
284,756 
Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates:
 
 
 
 
Depreciation and amortization
(54,652)
(48,287)
(156,200)
(146,895)
Impairments of real estate assets
0 
0 
0 
(588)
General and administrative expenses
(9,182)
(7,526)
(29,511)
(26,973)
Interest expense
(21,512)
(22,348)
(64,937)
(64,923)
Other income
1,038 
728 
3,255 
3,555 
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
19,670 
17,813 
60,240 
48,932 
Total Office Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
151,294 
139,676 
446,101 
416,165 
Total Net Operating Income
96,384 
86,776 
285,704 
261,025 
Office Atlanta, GA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
25,737 
24,682 
76,130 
71,286 
Total Net Operating Income
15,970 
14,808 
47,000 
42,826 
Office Greensboro, NC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
5,288 
6,439 
16,126 
19,469 
Total Net Operating Income
3,275 
4,105 
10,217 
12,352 
Office Greenville, SC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
0 
532 
0 
2,140 
Total Net Operating Income
0 
289 
0 
1,154 
Office Kansas City, MO [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
4,207 
4,218 
12,565 
12,401 
Total Net Operating Income
2,561 
2,671 
8,023 
7,974 
Office Memphis, TN [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
11,790 
10,186 
35,574 
30,076 
Total Net Operating Income
7,317 
6,024 
22,347 
17,420 
Office Nashville, TN [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
22,614 
20,139 
66,200 
59,926 
Total Net Operating Income
15,726 
13,590 
46,438 
40,742 
Office Orlando, FL [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
11,397 
8,991 
33,179 
27,059 
Total Net Operating Income
6,153 
5,087 
18,984 
15,809 
Office Pittsburgh, PA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
14,831 
14,259 
44,099 
42,030 
Total Net Operating Income
8,840 
8,122 
25,472 
23,303 
Office Raleigh, NC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
27,081 
21,357 
76,063 
65,386 
Total Net Operating Income
19,018 
14,611 
53,647 
45,969 
Office Richmond, VA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
10,564 
11,236 
31,351 
34,999 
Total Net Operating Income
6,909 
7,165 
20,721 
23,106 
Office Tampa, FL [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
17,785 
17,637 
54,814 
51,393 
Total Net Operating Income
10,615 
10,304 
32,855 
30,370 
Total Retail Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
9,461 
9,753 
27,164 
28,337 
Total Net Operating Income
5,439 
6,157 
15,502 
17,186 
Retail Kansas City, MO [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
9,461 
9,753 
27,164 
28,337 
Total Net Operating Income
5,439 
6,157 
15,502 
17,186 
Other [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
2,981 
3,200 
8,917 
9,302 
Total Net Operating Income
$ 2,155 
$ 2,313 
$ 6,427 
$ 6,545 
Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2015
sqft
Other Commitments [Line Items]
 
Rentable square feet of commercial real estate properties (in sq feet)
32,500,000 
Atlanta, GA Building Acquisition (09/2015) [Member]
 
Other Commitments [Line Items]
 
Number of office properties acquired
2 
Kansas City, MO Portfolio Disposition [Member]
 
Other Commitments [Line Items]
 
Expected severance costs to be incurred
$ 2.5 
Kansas City, MO Portfolio Disposition [Member] |
Retail Rentable Square Feet [Member]
 
Other Commitments [Line Items]
 
Rentable square feet of commercial real estate properties (in sq feet)
804,000 
Kansas City, MO Portfolio Disposition [Member] |
Office Rentable Square Feet [Member]
 
Other Commitments [Line Items]
 
Rentable square feet of commercial real estate properties (in sq feet)
617,000