HIGHWOODS PROPERTIES, INC., 10-Q filed on 7/25/2023
Quarterly Report
v3.23.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2023
Jul. 18, 2023
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2023  
Document Transition Report false  
Entity Registrant Name HIGHWOODS PROPERTIES, INC.  
Entity Incorporation, State or Country Code MD  
Entity File Number 001-13100  
Entity Tax Identification Number 56-1871668  
Entity Address, Address Line One 150 Fayetteville Street  
Entity Address, Address Line Two Suite 1400  
Entity Address, City or Town Raleigh  
Entity Address, State or Province NC  
Entity Address, Postal Zip Code 27601  
City Area Code 919  
Local Phone Number 872-4924  
Title of 12(b) Security Common Stock, $.01 par value, of Highwoods Properties, Inc.  
Trading Symbol HIW  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   105,675,624
Entity Central Index Key 0000921082  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Highwoods Realty Limited Partnership    
Entity Information [Line Items]    
Entity Registrant Name HIGHWOODS REALTY LIMITED PARTNERSHIP  
Entity Incorporation, State or Country Code NC  
Entity File Number 000-21731  
Entity Tax Identification Number 56-1869557  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0000941713  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.23.2
HPI - Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Real estate assets, at cost:    
Land $ 538,437 $ 548,720
Buildings and tenant improvements 5,884,834 5,909,754
Development in-process 64,966 46,735
Land held for development 228,390 231,218
Total real estate assets 6,716,627 6,736,427
Less-accumulated depreciation (1,661,609) (1,609,502)
Net real estate assets 5,055,018 5,126,925
Real estate and other assets, net, held for sale 4,692 0
Cash and cash equivalents 17,011 21,357
Restricted cash 5,350 4,748
Accounts receivable 20,552 25,481
Mortgages and notes receivable 9,891 1,051
Accrued straight-line rents receivable 303,781 293,674
Investments in and advances to unconsolidated affiliates 294,160 269,221
Deferred leasing costs, net of accumulated amortization of $168,187 and $163,751, respectively 239,193 252,828
Prepaid expenses and other assets, net of accumulated depreciation of $23,417 and $21,660, respectively 78,053 68,091
Total Assets 6,027,701 6,063,376
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity:    
Mortgages and notes payable, net 3,198,081 3,197,215
Accounts payable, accrued expenses and other liabilities 297,601 301,184
Total Liabilities 3,495,682 3,498,399
Commitments and contingencies
Noncontrolling interests in the Operating Partnership 56,206 65,977
Equity:    
Preferred Stock, $.01 par value, 50,000,000 authorized shares; 8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 28,811 and 28,821 shares issued and outstanding, respectively 28,811 28,821
Common Stock, $.01 par value, 200,000,000 authorized shares; 105,473,213 and 105,210,858 shares issued and outstanding, respectively 1,055 1,052
Additional paid-in capital 3,095,272 3,081,330
Distributions in excess of net income available for common stockholders (652,436) (633,227)
Accumulated other comprehensive loss (1,360) (1,211)
Total Stockholders’ Equity 2,471,342 2,476,765
Noncontrolling interests in consolidated affiliates 4,471 22,235
Total Equity/Capital 2,475,813 2,499,000
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital $ 6,027,701 $ 6,063,376
v3.23.2
HPI - Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Assets:    
Deferred leasing costs, accumulated amortization $ 168,187 $ 163,751
Prepaid expenses and other assets, accumulated depreciation $ 23,417 $ 21,660
Equity:    
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, dividend rate percentage (in hundredths) 8.625% 8.625%
Series A Preferred Stock, liquidation preference (in dollars per share) $ 1,000 $ 1,000
Series A Preferred Stock, shares issued (in shares) 28,811 28,821
Series A Preferred Stock, shares outstanding (in shares) 28,811 28,821
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) 105,473,213 105,210,858
Common Stock, shares outstanding (in shares) 105,473,213 105,210,858
v3.23.2
HRLP - Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Real estate assets, at cost:    
Land $ 538,437 $ 548,720
Buildings and tenant improvements 5,884,834 5,909,754
Development in-process 64,966 46,735
Land held for development 228,390 231,218
Total real estate assets 6,716,627 6,736,427
Less-accumulated depreciation (1,661,609) (1,609,502)
Net real estate assets 5,055,018 5,126,925
Real estate and other assets, net, held for sale 4,692 0
Cash and cash equivalents 17,011 21,357
Restricted cash 5,350 4,748
Accounts receivable 20,552 25,481
Mortgages and notes receivable 9,891 1,051
Accrued straight-line rents receivable 303,781 293,674
Investments in and advances to unconsolidated affiliates 294,160 269,221
Deferred leasing costs, net of accumulated amortization of $168,187 and $163,751, respectively 239,193 252,828
Prepaid expenses and other assets, net of accumulated depreciation of $23,417 and $21,660, respectively 78,053 68,091
Total Assets 6,027,701 6,063,376
Liabilities, Redeemable Operating Partnership Units and Capital:    
Mortgages and notes payable, net 3,198,081 3,197,215
Accounts payable, accrued expenses and other liabilities 297,601 301,184
Total Liabilities 3,495,682 3,498,399
Commitments and contingencies
Capital:    
Accumulated other comprehensive loss (1,360) (1,211)
Noncontrolling interests in consolidated affiliates 4,471 22,235
Total Equity/Capital 2,475,813 2,499,000
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital 6,027,701 6,063,376
Highwoods Realty Limited Partnership    
Real estate assets, at cost:    
Land 538,437 548,720
Buildings and tenant improvements 5,884,834 5,909,754
Development in-process 64,966 46,735
Land held for development 228,390 231,218
Total real estate assets 6,716,627 6,736,427
Less-accumulated depreciation (1,661,609) (1,609,502)
Net real estate assets 5,055,018 5,126,925
Real estate and other assets, net, held for sale 4,692 0
Cash and cash equivalents 17,011 21,357
Restricted cash 5,350 4,748
Accounts receivable 20,552 25,481
Mortgages and notes receivable 9,891 1,051
Accrued straight-line rents receivable 303,781 293,674
Investments in and advances to unconsolidated affiliates 294,160 269,221
Deferred leasing costs, net of accumulated amortization of $168,187 and $163,751, respectively 239,193 252,828
Prepaid expenses and other assets, net of accumulated depreciation of $23,417 and $21,660, respectively 78,053 68,091
Total Assets 6,027,701 6,063,376
Liabilities, Redeemable Operating Partnership Units and Capital:    
Mortgages and notes payable, net 3,198,081 3,197,215
Accounts payable, accrued expenses and other liabilities 297,601 301,184
Total Liabilities 3,495,682 3,498,399
Commitments and contingencies
Redeemable Operating Partnership Units:    
Common Units, 2,350,715 and 2,358,009 outstanding, respectively 56,206 65,977
Series A Preferred Units (liquidation preference $1,000 per unit), 28,811 and 28,821 units issued and outstanding, respectively 28,811 28,821
Total Redeemable Operating Partnership Units 85,017 94,798
Capital:    
General partner Common Units, 1,074,151 and 1,071,601 outstanding, respectively 24,439 24,492
Limited partner Common Units, 103,990,253 and 103,730,448 outstanding, respectively 2,419,452 2,424,663
Accumulated other comprehensive loss (1,360) (1,211)
Noncontrolling interests in consolidated affiliates 4,471 22,235
Total Equity/Capital 2,447,002 2,470,179
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital $ 6,027,701 $ 6,063,376
v3.23.2
HRLP - Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Assets:    
Deferred leasing costs, accumulated amortization $ 168,187 $ 163,751
Prepaid expenses and other assets, accumulated depreciation 23,417 21,660
Highwoods Realty Limited Partnership    
Assets:    
Deferred leasing costs, accumulated amortization 168,187 163,751
Prepaid expenses and other assets, accumulated depreciation $ 23,417 $ 21,660
Redeemable Operating Partnership Units: [Abstract]    
Redeemable Common Units outstanding (in shares) 2,350,715 2,358,009
Series A Preferred Units, liquidation preference (in dollars per share) $ 1,000 $ 1,000
Series A Preferred Units, issued (in shares) 28,811 28,821
Series A Preferred Units, outstanding (in shares) 28,811 28,821
Common Units: [Abstract]    
General partners' capital account, units outstanding (in shares) 1,074,151 1,071,601
Limited partners' capital account, units outstanding (in shares) 103,990,253 103,730,448
v3.23.2
HPI - Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Statement [Abstract]        
Rental and other revenues $ 207,291 $ 203,841 $ 420,043 $ 410,219
Operating expenses:        
Rental property and other expenses 66,307 62,369 132,038 123,791
Depreciation and amortization 75,018 69,742 145,651 139,409
Impairments of real estate assets 0 35,000 0 35,000
General and administrative 9,380 9,591 21,795 23,147
Total operating expenses 150,705 176,702 299,484 321,347
Interest expense 34,063 25,027 67,161 49,420
Other income 1,181 120 2,328 483
Gains on disposition of property 19,368 50,044 19,818 54,144
Gain on deconsolidation of affiliate 0 0 11,778 0
Equity in earnings of unconsolidated affiliates 798 326 1,502 626
Net income 43,870 52,602 88,824 94,705
Net (income) attributable to noncontrolling interests in the Operating Partnership (947) (1,203) (1,933) (2,168)
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (4) (266) 483 (523)
Dividends on Preferred Stock (621) (622) (1,242) (1,243)
Net income available for common stockholders $ 42,298 $ 50,511 $ 86,132 $ 90,771
Earnings per Common Share – basic:        
Net income available for common stockholders (in dollars per share) $ 0.40 $ 0.48 $ 0.82 $ 0.86
Weighted average Common Shares outstanding - basic (in shares) 105,457 105,163 105,373 105,049
Earnings per Common Share - diluted:        
Net income available for common stockholders (in dollars per share) $ 0.40 $ 0.48 $ 0.82 $ 0.86
Weighted average Common Shares outstanding - diluted (in shares) 107,808 107,654 107,728 107,554
v3.23.2
HRLP - Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Rental and other revenues $ 207,291 $ 203,841 $ 420,043 $ 410,219
Operating expenses:        
Rental property and other expenses 66,307 62,369 132,038 123,791
Depreciation and amortization 75,018 69,742 145,651 139,409
Impairments of real estate assets 0 35,000 0 35,000
General and administrative 9,380 9,591 21,795 23,147
Total operating expenses 150,705 176,702 299,484 321,347
Interest expense 34,063 25,027 67,161 49,420
Other income 1,181 120 2,328 483
Gains on disposition of property 19,368 50,044 19,818 54,144
Gain on deconsolidation of affiliate 0 0 11,778 0
Equity in earnings of unconsolidated affiliates 798 326 1,502 626
Net income 43,870 52,602 88,824 94,705
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (4) (266) 483 (523)
Highwoods Realty Limited Partnership        
Rental and other revenues 207,291 203,841 420,043 410,219
Operating expenses:        
Rental property and other expenses 66,307 62,369 132,038 123,791
Depreciation and amortization 75,018 69,742 145,651 139,409
Impairments of real estate assets 0 35,000 0 35,000
General and administrative 9,380 9,591 21,795 23,147
Total operating expenses 150,705 176,702 299,484 321,347
Interest expense 34,063 25,027 67,161 49,420
Other income 1,181 120 2,328 483
Gains on disposition of property 19,368 50,044 19,818 54,144
Gain on deconsolidation of affiliate     11,778 0
Equity in earnings of unconsolidated affiliates 798 326 1,502 626
Net income 43,870 52,602 88,824 94,705
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (4) (266) 483 (523)
Distributions on Preferred Units (621) (622) (1,242) (1,243)
Net income available for common unitholders $ 43,245 $ 51,714 $ 88,065 $ 92,939
Earnings per Common Unit - basic:        
Net income available for common unitholders (in dollars per share) $ 0.40 $ 0.48 $ 0.82 $ 0.87
Weighted average Common Units outstanding - basic (in shares) 107,399 107,240 107,319 107,135
Earnings per Common Unit - diluted:        
Net income available for common unitholders (in dollars per share) $ 0.40 $ 0.48 $ 0.82 $ 0.87
Weighted average Common Units outstanding - diluted (in shares) 107,399 107,245 107,319 107,145
v3.23.2
HPI - Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Comprehensive income:        
Net income $ 43,870 $ 52,602 $ 88,824 $ 94,705
Other comprehensive loss:        
Amortization of cash flow hedges (74) (74) (149) (89)
Total other comprehensive loss (74) (74) (149) (89)
Total comprehensive income 43,796 52,528 88,675 94,616
Less-comprehensive (income) attributable to noncontrolling interests (951) (1,469) (1,450) (2,691)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders $ 42,845 $ 51,059 $ 87,225 $ 91,925
v3.23.2
HRLP - Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Comprehensive income:        
Net income $ 43,870 $ 52,602 $ 88,824 $ 94,705
Other comprehensive loss:        
Amortization of cash flow hedges (74) (74) (149) (89)
Other comprehensive loss (74) (74) (149) (89)
Total comprehensive income 43,796 52,528 88,675 94,616
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (951) (1,469) (1,450) (2,691)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders 42,845 51,059 87,225 91,925
Highwoods Realty Limited Partnership        
Comprehensive income:        
Net income 43,870 52,602 88,824 94,705
Other comprehensive loss:        
Amortization of cash flow hedges (74) (74) (149) (89)
Other comprehensive loss (74) (74) (149) (89)
Total comprehensive income 43,796 52,528 88,675 94,616
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (4) (266) 483 (523)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders $ 43,792 $ 52,262 $ 89,158 $ 94,093
v3.23.2
HPI - Consolidated Statements of Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Series A Cumulative Redeemable Preferred Shares [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Noncontrolling Interests in Consolidated Affiliates [Member]
Distributions in Excess of Net Income Available for Common Stockholders [Member]
Balance (in shares) at Dec. 31, 2021   104,892,780          
Balance at Dec. 31, 2021 $ 2,499,558 $ 1,049 $ 28,821 $ 3,027,861 $ (973) $ 22,416 $ (579,616)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuances of Common Stock, net of issuance costs and tax withholdings - shares   79,358          
Issuances of Common Stock, net of issuance costs and tax withholdings 4,435 $ 1   4,434      
Conversions of Common Units to Common Stock - Shares   30,909          
Conversions of Common Units to Common Stock 1,251     1,251      
Dividends on Common Stock (105,001)           (105,001)
Dividends on Preferred Stock (1,243)           (1,243)
Adjustment of noncontrolling interests in the Operating Partnership to fair value 25,528     25,528      
Distributions to noncontrolling interests in consolidated affiliates (1,411)         (1,411)  
Issuances of restricted stock - shares   181,807          
Issuances of restricted stock 0            
Share-based compensation expense, net of forfeitures 6,136 $ 2   6,134      
Net (income) attributable to noncontrolling interests in the Operating Partnership (2,168)           (2,168)
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates 0         523 (523)
Comprehensive income:              
Net income 94,705           94,705
Other comprehensive loss (89)       (89)    
Total comprehensive income 94,616            
Balance (in shares) at Jun. 30, 2022   105,184,854          
Balance at Jun. 30, 2022 2,521,701 $ 1,052 28,821 3,065,208 (1,062) 21,528 (593,846)
Balance (in shares) at Mar. 31, 2022   105,143,984          
Balance at Mar. 31, 2022 2,492,521 $ 1,051 28,821 3,034,155 (988) 21,262 (591,780)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuances of Common Stock, net of issuance costs and tax withholdings - shares   9,537          
Issuances of Common Stock, net of issuance costs and tax withholdings 262 $ 1   261      
Conversions of Common Units to Common Stock - Shares   30,909          
Conversions of Common Units to Common Stock 1,251     1,251      
Dividends on Common Stock (52,577)           (52,577)
Dividends on Preferred Stock (622)           (622)
Adjustment of noncontrolling interests in the Operating Partnership to fair value 28,696     28,696      
Issuances of restricted stock - shares   424          
Issuances of restricted stock 0            
Share-based compensation expense, net of forfeitures 845 $ 0   845      
Net (income) attributable to noncontrolling interests in the Operating Partnership (1,203)           (1,203)
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates 0         266 (266)
Comprehensive income:              
Net income 52,602           52,602
Other comprehensive loss (74)       (74)    
Total comprehensive income 52,528            
Balance (in shares) at Jun. 30, 2022   105,184,854          
Balance at Jun. 30, 2022 $ 2,521,701 $ 1,052 28,821 3,065,208 (1,062) 21,528 (593,846)
Balance (in shares) at Dec. 31, 2022 105,210,858 105,210,858          
Balance at Dec. 31, 2022 $ 2,499,000 $ 1,052 28,821 3,081,330 (1,211) 22,235 (633,227)
Balance (in shares) at Mar. 31, 2023   105,457,508          
Balance at Mar. 31, 2023 $ 2,487,159 $ 1,055 28,811 3,096,126 (1,286) 4,467 (642,014)
Balance (in shares) at Dec. 31, 2022 105,210,858 105,210,858          
Balance at Dec. 31, 2022 $ 2,499,000 $ 1,052 28,821 3,081,330 (1,211) 22,235 (633,227)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuances of Common Stock, net of issuance costs and tax withholdings - shares 0 (7,511)          
Issuances of Common Stock, net of issuance costs and tax withholdings $ (563) $ 0   (563)      
Conversions of Common Units to Common Stock 0            
Dividends on Common Stock (105,341)           (105,341)
Dividends on Preferred Stock (1,242)           (1,242)
Adjustment of noncontrolling interests in the Operating Partnership to fair value 9,187     9,187      
Issuances of restricted stock - shares   273,833          
Issuances of restricted stock 0            
Redemptions/repurchases of Preferred Stock (10)   (10)        
Share-based compensation expense, net of forfeitures - shares   (3,967)          
Share-based compensation expense, net of forfeitures 5,321 $ 3   5,318      
Net (income) attributable to noncontrolling interests in the Operating Partnership (1,933)           (1,933)
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates 0         (483) 483
Deconsolidation of affiliate (17,281)         (17,281)  
Comprehensive income:              
Net income 88,824           88,824
Other comprehensive loss (149)       (149)    
Total comprehensive income $ 88,675            
Balance (in shares) at Jun. 30, 2023 105,473,213 105,473,213          
Balance at Jun. 30, 2023 $ 2,475,813 $ 1,055 28,811 3,095,272 (1,360) 4,471 (652,436)
Balance (in shares) at Mar. 31, 2023   105,457,508          
Balance at Mar. 31, 2023 $ 2,487,159 $ 1,055 28,811 3,096,126 (1,286) 4,467 (642,014)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuances of Common Stock, net of issuance costs and tax withholdings - shares 0 18,572          
Issuances of Common Stock, net of issuance costs and tax withholdings $ 265 $ 0   265      
Dividends on Common Stock (52,720)           (52,720)
Dividends on Preferred Stock (621)           (621)
Adjustment of noncontrolling interests in the Operating Partnership to fair value (1,915)     (1,915)      
Issuances of restricted stock - shares   1,100          
Issuances of restricted stock 0            
Share-based compensation expense, net of forfeitures - shares   (3,967)          
Share-based compensation expense, net of forfeitures 796 $ 0   796      
Net (income) attributable to noncontrolling interests in the Operating Partnership (947)           (947)
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates 0         4 (4)
Comprehensive income:              
Net income 43,870           43,870
Other comprehensive loss (74)       (74)    
Total comprehensive income $ 43,796            
Balance (in shares) at Jun. 30, 2023 105,473,213 105,473,213          
Balance at Jun. 30, 2023 $ 2,475,813 $ 1,055 $ 28,811 $ 3,095,272 $ (1,360) $ 4,471 $ (652,436)
v3.23.2
HPI - Consolidated Statements of Equity (Parentheticals) - Highwoods Properties, Inc. [Member] - $ / shares
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dividends on Common Stock (per share) $ 0.50 $ 0.50 $ 1.00 $ 1.00
Series A Cumulative Redeemable Preferred Shares [Member]        
Dividends on Preferred Stock (per share) $ 21.5625 $ 21.5625 $ 43.1250 $ 43.125
v3.23.2
HRLP - Consolidated Statements of Capital - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Increase (Decrease) in Partners' Capital [Roll Forward]        
Balance $ 2,487,159 $ 2,492,521 $ 2,499,000 $ 2,499,558
Share-based compensation expense, net of forfeitures 796 845 5,321 6,136
Distributions to noncontrolling interests in consolidated affiliates       (1,411)
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates 0 0 0 0
Deconsolidation of affiliate     (17,281)  
Comprehensive income:        
Net income 43,870 52,602 88,824 94,705
Other comprehensive loss (74) (74) (149) (89)
Total comprehensive income 43,796 52,528 88,675 94,616
Balance 2,475,813 2,521,701 2,475,813 2,521,701
Highwoods Realty Limited Partnership        
Increase (Decrease) in Partners' Capital [Roll Forward]        
Balance 2,458,348 2,463,700 2,470,179 2,470,737
Issuances of Common Units, net of issuance costs and tax withholdings 265 262 (563) 4,435
Redemption of Common Units (163)   (163)  
Distributions on Common Units (53,895) (53,616) (107,286) (107,087)
Distributions on Preferred Units (621) (622) (1,242) (1,243)
Share-based compensation expense, net of forfeitures 796 845 5,321 6,136
Distributions to noncontrolling interests in consolidated affiliates       (1,411)
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner (1,524) 29,783 9,362 26,697
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates 0 0 0 0
Deconsolidation of affiliate     (17,281)  
Comprehensive income:        
Net income 43,870 52,602 88,824 94,705
Other comprehensive loss (74) (74) (149) (89)
Total comprehensive income 43,796 52,528 88,675 94,616
Balance 2,447,002 2,492,880 2,447,002 2,492,880
General Partners' Common Units [Member] | Highwoods Realty Limited Partnership        
Increase (Decrease) in Partners' Capital [Roll Forward]        
Balance 24,553 24,433 24,492 24,492
Issuances of Common Units, net of issuance costs and tax withholdings 2 2 (6) 44
Redemption of Common Units (2)   (2)  
Distributions on Common Units (539) (536) (1,073) (1,071)
Distributions on Preferred Units (6) (6) (12) (12)
Share-based compensation expense, net of forfeitures 8 8 53 61
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner (15) 298 94 267
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates 0 (2) 5 (5)
Comprehensive income:        
Net income 438 526 888 947
Balance 24,439 24,723 24,439 24,723
Limited Partners' Common Units [Member] | Highwoods Realty Limited Partnership        
Increase (Decrease) in Partners' Capital [Roll Forward]        
Balance 2,430,614 2,418,993 2,424,663 2,424,802
Issuances of Common Units, net of issuance costs and tax withholdings 263 260 (557) 4,391
Redemption of Common Units (161)   (161)  
Distributions on Common Units (53,356) (53,080) (106,213) (106,016)
Distributions on Preferred Units (615) (616) (1,230) (1,231)
Share-based compensation expense, net of forfeitures 788 837 5,268 6,075
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner (1,509) 29,485 9,268 26,430
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (4) (264) 478 (518)
Comprehensive income:        
Net income 43,432 52,076 87,936 93,758
Balance 2,419,452 2,447,691 2,419,452 2,447,691
Accumulated Other Comprehensive Income (Loss) [Member] | Highwoods Realty Limited Partnership        
Increase (Decrease) in Partners' Capital [Roll Forward]        
Balance (1,286) (988) (1,211) (973)
Comprehensive income:        
Other comprehensive loss (74) (74) (149) (89)
Balance (1,360) (1,062) (1,360) (1,062)
Noncontrolling Interests in Consolidated Affiliates [Member] | Highwoods Realty Limited Partnership        
Increase (Decrease) in Partners' Capital [Roll Forward]        
Balance 4,467 21,262 22,235 22,416
Distributions to noncontrolling interests in consolidated affiliates       (1,411)
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates 4 266 (483) 523
Deconsolidation of affiliate     (17,281)  
Comprehensive income:        
Balance $ 4,471 $ 21,528 $ 4,471 $ 21,528
v3.23.2
HRLP - Consolidated Statements of Capital (Parentheticals) - Highwoods Realty Limited Partnership - $ / shares
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Distributions on Common Units (per unit) $ 0.50 $ 0.50 $ 1.00 $ 1.00
Series A Cumulative Redeemable Preferred Shares [Member]        
Distributions on Preferred Units (per unit) $ 21.5625 $ 21.5625 $ 43.1250 $ 43.125
v3.23.2
HPI - Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Operating activities:    
Net income $ 88,824 $ 94,705
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 145,651 139,409
Amortization of lease incentives and acquisition-related intangible assets and liabilities 494 (166)
Share-based compensation expense 5,321 6,136
Net credit losses on operating lease receivables 1,351 2,625
Accrued interest on mortgages and notes receivable (390) (46)
Amortization of debt issuance costs 2,398 2,040
Amortization of cash flow hedges (149) (89)
Amortization of mortgages and notes payable fair value adjustments (172) (41)
Impairments of real estate assets 0 35,000
Net gains on disposition of property (19,818) (54,144)
Gain on deconsolidation of controlling interest in affiliate (11,778) 0
Equity in earnings of unconsolidated affiliates (1,502) (626)
Distributions of earnings from unconsolidated affiliates 988 598
Changes in operating assets and liabilities:    
Accounts receivable 2,103 (3,758)
Prepaid expenses and other assets (8,503) (6,534)
Accrued straight-line rents receivable (15,394) (13,053)
Accounts payable, accrued expenses and other liabilities (8,304) (158)
Net cash provided by operating activities 181,120 201,898
Investing activities:    
Investments in acquired real estate and related intangible assets, net of cash acquired (18,544) (26,977)
Investments in development in-process (18,658) (20,869)
Investments in tenant improvements and deferred leasing costs (43,720) (60,661)
Investments in building improvements (43,848) (26,528)
Net proceeds from disposition of real estate assets 51,538 107,362
Distributions of capital from unconsolidated affiliates 1,839 0
Investments in mortgages and notes receivable (9,763) (24)
Repayments of mortgages and notes receivable 116 144
Investments in and advances to unconsolidated affiliates (77,736) (7,500)
Repayments of preferred equity from unconsolidated affiliates 80,000 0
Changes in earnest money deposits 15,500 (37,500)
Changes in other investing activities (4,898) 2,684
Net cash used in investing activities (68,174) (69,869)
Financing activities:    
Dividends on Common Stock (105,341) (105,001)
Redemptions/repurchases of Preferred Stock (10) 0
Redemption of Common Units (163) 0
Dividends on Preferred Stock (1,242) (1,243)
Distributions to noncontrolling interests in the Operating Partnership (2,354) (2,495)
Distributions to noncontrolling interests in consolidated affiliates 0 (1,411)
Proceeds from the issuance of Common Stock 988 6,839
Costs paid for the issuance of Common Stock (226) (248)
Repurchase of shares related to tax withholdings (1,325) (2,156)
Borrowings on revolving credit facility 159,000 145,000
Repayments of revolving credit facility (355,000) (125,000)
Borrowings on mortgages and notes payable 200,000 200,000
Repayments of mortgages and notes payable (3,326) (203,187)
Payments for debt issuance costs and other financing activities (1,305) (2,657)
Net cash used in financing activities (110,304) (91,559)
Net increase in cash and cash equivalents and restricted cash 2,642 40,470
Cash from deconsolidation of controlling interest in affiliate (6,386) 0
Cash and cash equivalents and restricted cash at beginning of the period 26,105 31,198
Cash and cash equivalents and restricted cash at end of the period 22,361 71,668
Reconciliation of cash and cash equivalents and restricted cash:    
Cash and cash equivalents at end of the period 17,011 25,045
Restricted cash at end of the period 5,350 46,623
Supplemental disclosure of cash flow information:    
Cash paid for interest, net of amounts capitalized 63,858 47,762
Supplemental disclosure of non-cash investing and financing activities:    
Conversions of Common Units to Common Stock 0 1,251
Changes in accrued capital expenditures [1] 7,067 (20,066)
Write-off of fully depreciated real estate assets 40,556 21,827
Write-off of fully amortized leasing costs 19,169 11,628
Write-off of fully amortized debt issuance costs 0 1,216
Adjustment of noncontrolling interests in the Operating Partnership to fair value 9,187 25,528
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities $ 60,500 $ 34,500
[1] Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities as of June 30, 2023 and 2022 were $60.5 million and $34.5 million, respectively.
v3.23.2
HRLP - Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Operating activities:    
Net income $ 88,824 $ 94,705
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 145,651 139,409
Amortization of lease incentives and acquisition-related intangible assets and liabilities 494 (166)
Share-based compensation expense 5,321 6,136
Net credit losses on operating lease receivables 1,351 2,625
Accrued interest on mortgages and notes receivable (390) (46)
Amortization of debt issuance costs 2,398 2,040
Amortization of cash flow hedges (149) (89)
Amortization of mortgages and notes payable fair value adjustments (172) (41)
Impairments of real estate assets 0 35,000
Net gains on disposition of property (19,818) (54,144)
Gain on deconsolidation of controlling interest in affiliate (11,778) 0
Equity in earnings of unconsolidated affiliates (1,502) (626)
Distributions of earnings from unconsolidated affiliates 988 598
Changes in operating assets and liabilities:    
Accounts receivable 2,103 (3,758)
Prepaid expenses and other assets (8,503) (6,534)
Accrued straight-line rents receivable (15,394) (13,053)
Accounts payable, accrued expenses and other liabilities (8,304) (158)
Net cash provided by operating activities 181,120 201,898
Investing activities:    
Investments in acquired real estate and related intangible assets, net of cash acquired (18,544) (26,977)
Investments in development in-process (18,658) (20,869)
Investments in tenant improvements and deferred leasing costs (43,720) (60,661)
Investments in building improvements (43,848) (26,528)
Net proceeds from disposition of real estate assets 51,538 107,362
Distributions of capital from unconsolidated affiliates 1,839 0
Investments in mortgages and notes receivable (9,763) (24)
Repayments of mortgages and notes receivable 116 144
Investments in and advances to unconsolidated affiliates (77,736) (7,500)
Repayments of preferred equity from unconsolidated affiliates 80,000 0
Changes in earnest money deposits 15,500 (37,500)
Changes in other investing activities (4,898) 2,684
Net cash used in investing activities (68,174) (69,869)
Financing activities:    
Redemption of Common Units (163) 0
Distributions to noncontrolling interests in consolidated affiliates 0 (1,411)
Borrowings on revolving credit facility 159,000 145,000
Repayments of revolving credit facility (355,000) (125,000)
Borrowings on mortgages and notes payable 200,000 200,000
Repayments of mortgages and notes payable (3,326) (203,187)
Payments for debt issuance costs and other financing activities (1,305) (2,657)
Net cash used in financing activities (110,304) (91,559)
Net increase in cash and cash equivalents and restricted cash 2,642 40,470
Cash from deconsolidation of controlling interest in affiliate (6,386) 0
Cash and cash equivalents and restricted cash at beginning of the period 26,105 31,198
Cash and cash equivalents and restricted cash at end of the period 22,361 71,668
Reconciliation of cash and cash equivalents and restricted cash:    
Cash and cash equivalents at end of the period 17,011 25,045
Restricted cash at end of the period 5,350 46,623
Supplemental disclosure of cash flow information:    
Cash paid for interest, net of amounts capitalized 63,858 47,762
Supplemental disclosure of non-cash investing and financing activities:    
Changes in accrued capital expenditures [1] 7,067 (20,066)
Write-off of fully depreciated real estate assets 40,556 21,827
Write-off of fully amortized leasing costs 19,169 11,628
Write-off of fully amortized debt issuance costs 0 1,216
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities 60,500 34,500
Highwoods Realty Limited Partnership    
Operating activities:    
Net income 88,824 94,705
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 145,651 139,409
Amortization of lease incentives and acquisition-related intangible assets and liabilities 494 (166)
Share-based compensation expense 5,321 6,136
Net credit losses on operating lease receivables 1,351 2,625
Accrued interest on mortgages and notes receivable (390) (46)
Amortization of debt issuance costs 2,398 2,040
Amortization of cash flow hedges (149) (89)
Amortization of mortgages and notes payable fair value adjustments (172) (41)
Impairments of real estate assets 0 35,000
Net gains on disposition of property (19,818) (54,144)
Gain on deconsolidation of controlling interest in affiliate (11,778) 0
Equity in earnings of unconsolidated affiliates (1,502) (626)
Distributions of earnings from unconsolidated affiliates 988 598
Changes in operating assets and liabilities:    
Accounts receivable 2,103 (3,758)
Prepaid expenses and other assets (8,503) (6,534)
Accrued straight-line rents receivable (15,394) (13,053)
Accounts payable, accrued expenses and other liabilities (8,304) (158)
Net cash provided by operating activities 181,120 201,898
Investing activities:    
Investments in acquired real estate and related intangible assets, net of cash acquired (18,544) (26,977)
Investments in development in-process (18,658) (20,869)
Investments in tenant improvements and deferred leasing costs (43,720) (60,661)
Investments in building improvements (43,848) (26,528)
Net proceeds from disposition of real estate assets 51,538 107,362
Distributions of capital from unconsolidated affiliates 1,839 0
Investments in mortgages and notes receivable (9,763) (24)
Repayments of mortgages and notes receivable 116 144
Investments in and advances to unconsolidated affiliates (77,736) (7,500)
Repayments of preferred equity from unconsolidated affiliates 80,000 0
Changes in earnest money deposits 15,500 (37,500)
Changes in other investing activities (4,898) 2,684
Net cash used in investing activities (68,174) (69,869)
Financing activities:    
Distributions on Common Units (107,286) (107,087)
Redemptions/repurchases of Preferred Units (10) 0
Redemption of Common Units (163) 0
Dividends on Preferred Units (1,242) (1,243)
Distributions to noncontrolling interests in consolidated affiliates 0 (1,411)
Proceeds from the issuance of Common Units 988 6,839
Costs paid for the issuance of Common Units (226) (248)
Repurchase of units related to tax withholdings (1,325) (2,156)
Borrowings on revolving credit facility 159,000 145,000
Repayments of revolving credit facility (355,000) (125,000)
Borrowings on mortgages and notes payable 200,000 200,000
Repayments of mortgages and notes payable (3,326) (203,187)
Payments for debt issuance costs and other financing activities (1,714) (3,066)
Net cash used in financing activities (110,304) (91,559)
Net increase in cash and cash equivalents and restricted cash 2,642 40,470
Cash from deconsolidation of controlling interest in affiliate (6,386) 0
Cash and cash equivalents and restricted cash at beginning of the period 26,105 31,198
Cash and cash equivalents and restricted cash at end of the period 22,361 71,668
Reconciliation of cash and cash equivalents and restricted cash:    
Cash and cash equivalents at end of the period 17,011 25,045
Restricted cash at end of the period 5,350 46,623
Supplemental disclosure of cash flow information:    
Cash paid for interest, net of amounts capitalized 63,858 47,762
Supplemental disclosure of non-cash investing and financing activities:    
Changes in accrued capital expenditures [1] 7,067 (20,066)
Write-off of fully depreciated real estate assets 40,556 21,827
Write-off of fully amortized leasing costs 19,169 11,628
Write-off of fully amortized debt issuance costs 0 1,216
Adjustment of Redeemable Common Units to fair value (9,771) (27,106)
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities $ 60,500 $ 34,500
[1] Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities as of June 30, 2023 and 2022 were $60.5 million and $34.5 million, respectively.
v3.23.2
Description of Business and Significant Accounting Policies
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
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 office real estate investment trust (“REIT”) that owns, develops, acquires, leases and manages properties primarily in the best business districts of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. The Company conducts its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”). As of June 30, 2023, we owned or had an interest in 28.5 million rentable square feet of in-service properties, 1.6 million rentable square feet of office properties under development and development land with approximately 5.2 million rentable square feet of potential office build out.

Capital Structure

The Company is the sole general partner of the Operating Partnership. As of June 30, 2023, the Company owned all of the Preferred Units and 105.1 million, or 97.8%, of the Common Units in the Operating Partnership. Limited partners owned the remaining 2.4 million Common Units. During the six months ended June 30, 2023, the Company redeemed 7,294 Common Units for cash.

During the first quarter of 2023, we entered into separate equity distribution agreements in which the Company may offer and sell up to 300.0 million in aggregate gross sales price of shares of Common Stock. During each of the three and six months ended June 30, 2023, the Company issued no shares of Common Stock under its equity distribution agreements.

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. We consolidate joint venture investments, such as interests in partnerships and limited liability companies, when we control the major operating and financial policies of the investment through majority ownership, in our capacity as a general partner or managing member or through some other contractual right. In addition, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary.

As of June 30, 2023, we are involved with six entities we determined to be variable interest entities, one of which we are the primary beneficiary and is consolidated and five of which we are not the primary beneficiary and are not consolidated. We also own three properties through a joint venture investment that were deconsolidated effective January 1, 2023 (See Note 3).

All intercompany transactions and accounts have been eliminated.

In the opinion of management, the unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information 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 2022 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 our Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates.

Insurance

We are primarily self-insured for health care claims for participating employees. To limit our exposure to significant claims, we have stop-loss coverage on a per claim and annual aggregate basis. We use all relevant information to determine our liabilities for claims, including actuarial estimates of claim liabilities. When determining our liabilities, we include claims for incurred losses, even if they are unreported. As of June 30, 2023, a reserve of $0.5 million was recorded to cover estimated reported and unreported claims.

Recently Issued Accounting Standards

The Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that provides temporary optional expedients and exceptions to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). These optional expedients and exceptions provide guidance on contract modifications and hedge accounting. If certain criteria are met, entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. The guidance in this ASU is optional and may be elected now through December 31, 2024 as reference rate reform activities occur. We will continue to evaluate the impact of this ASU; however, we currently expect to avail ourselves of such optional expedients and exceptions should our modified contracts meet the required criteria.
v3.23.2
Leases
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases Leases
Operating Leases

We generally lease our office properties to lessees in exchange for fixed monthly payments that cover rent, property taxes, insurance and certain cost recoveries, primarily common area maintenance. Office properties owned by us that are under lease are primarily located in Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa and are leased to a wide variety of lessees across many industries. Our leases are operating leases and mostly range from three to 10 years. We recognized rental and other revenues related to operating lease payments of $203.8 million and $200.7 million during the three months ended June 30, 2023 and 2022, respectively, and $413.2 million and $404.3 million during the six months ended June 30, 2023 and 2022, respectively. Included in these amounts are variable lease payments of $17.5 million and $17.7 million during the three months ended June 30, 2023 and 2022, respectively, and $37.0 million and $35.0 million during the six months ended June 30, 2023 and 2022, respectively.
v3.23.2
Investments in and Advances to Affiliates
 6 Months Ended
Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Investments in and Advances to Affiliates Investments in and Advances to Affiliates
Unconsolidated Affiliates

- Highwoods-Markel Associates, LLC (“Markel”)

Markel is a joint venture in which we own a 50.0% interest that was consolidated as of December 31, 2022 because we controlled the major operating and financial policies of the entity. Effective January 1, 2023, the agreement governing the joint venture was modified to require the consent of both partners for major operating and financial policies of the entity. As a result, Markel was deconsolidated effective January 1, 2023, and this joint venture is now accounted for using the equity method of accounting. We recognized a gain on deconsolidation of $11.8 million related to adjusting our retained interest in the joint venture to fair value. The assets of Markel can be used only to settle obligations of the joint venture, and its creditors have no recourse to our wholly owned assets.

- Granite Park Six JV, LLC/ GPI 23 Springs JV, LLC (“Granite Park Six joint venture”/“23Springs joint venture”)

During 2022, we entered the Dallas market through the formation of two joint ventures with Granite Properties (“Granite”) to develop Granite Park Six and 23Springs. We own a 50.0% interest in each of these two joint ventures. We determined that we have a variable interest in both the Granite Park Six and 23Springs joint ventures primarily because the entities were designed to pass along interest rate risk, equity price risk and operation risk to us and Granite as equity holders. The joint ventures were further determined to be variable interest entities as they require additional subordinated financial support in the form of loans because the initial equity investments provided by us and Granite are not sufficient to finance the planned investments and operations. We concluded we do not have the power to direct matters that most significantly impact the activities of either entity and therefore do not qualify as the primary beneficiary. Accordingly, the entities are not consolidated. As of June 30, 2023, our risk of loss with respect to these arrangements was limited to the carrying value of each investment balance. Our investment balances were $41.4 million and $55.3 million as of June 30, 2023 for Granite Park Six and 23Springs, respectively. The assets of the Granite Park Six and 23Springs joint ventures can be used only to settle obligations of the respective joint venture, and their creditors have no recourse to our wholly owned assets.

- M+O JV, LLC (“McKinney & Olive joint venture”)

During 2022, we expanded our Dallas market presence by acquiring McKinney & Olive through the formation of another joint venture with Granite. We own a 50.0% interest in this joint venture. Upon formation, we determined that we had a variable interest in the McKinney & Olive joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us and Granite as equity holders. The McKinney & Olive joint venture was further determined to be a variable interest entity as it required additional subordinated financial support, in the form of a loan, because the initial equity investments by us and Granite, including the additional preferred equity provided by us, were not sufficient to finance its planned investments and operations. We concluded we did not have the power to direct matters that most significantly impact the activities of the entity and therefore did not qualify as the primary beneficiary. Accordingly, the entity was not consolidated upon formation.

During the second quarter of 2023, we and Granite each contributed an additional $40.0 million of common equity to the McKinney & Olive joint venture. Such proceeds were then used by the joint venture to redeem our $80.0 million short-term preferred equity investment in full. The $40.0 million of net proceeds were used to repay amounts outstanding under our $750.0 million revolving credit facility. Prior to the redemption, the preferred equity received monthly distributions at a rate of SOFR plus 350 basis points. This reconsideration event did not change our initial conclusion that we have a variable interest in the McKinney & Olive joint venture and that the McKinney & Olive joint venture is a variable interest entity. The reconsideration event also did not change our conclusion that we do not have the power to direct matters that most significantly impact the activities of the entity and therefore do not qualify as the primary beneficiary. As such, the entity remains unconsolidated as of June 30, 2023.

As of June 30, 2023, our risk of loss with respect to this arrangement was $123.5 million, which represents the carrying value of our investment balance. The assets of the McKinney & Olive joint venture can be used only to settle obligations of the joint venture, and its creditors have no recourse to our wholly owned assets.
- Midtown East Tampa, LLC (“Midtown East joint venture”)

During 2022, we formed the Midtown East joint venture in Tampa with The Bromley Companies (“Bromley”). We own a 50.0% interest in this joint venture. We determined that we have a variable interest in the Midtown East joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us as both a debt and equity holder and Bromley as an equity holder. The Midtown East joint venture was further determined to be a variable interest entity as it requires additional subordinated financial support in the form of a loan because the initial equity investments provided by us and Bromley are not sufficient to finance its planned investments and operations. We concluded we do not have the power to direct matters that most significantly impact the activities of the entity and therefore do not qualify as the primary beneficiary. Accordingly, the entity is not consolidated. As of June 30, 2023, our risk of loss with respect to this arrangement was limited to the carrying value of our investment balance of $3.4 million as no amounts were outstanding under the loan we have provided to the joint venture. The assets of the Midtown East joint venture can be used only to settle obligations of the joint venture, and its creditors have no recourse to our wholly owned assets.

- Brand/HRLP 2827 Peachtree LLC (“2827 Peachtree joint venture”)

During 2021, we formed the 2827 Peachtree joint venture in Atlanta with Brand Properties, LLC (“Brand”). We own a 50.0% interest in this joint venture. We determined that we have a variable interest in the 2827 Peachtree joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us as both a debt and equity holder and Brand as an equity holder. The 2827 Peachtree joint venture was further determined to be a variable interest entity as it requires additional subordinated financial support in the form of a loan because the initial equity investments provided by us and Brand are not sufficient to finance its planned investments and operations. We concluded we do not have the power to direct matters that most significantly impact the activities of the entity and therefore do not qualify as the primary beneficiary. Accordingly, the entity is not consolidated. As of June 30, 2023, our risk of loss with respect to this arrangement was $40.1 million, which consists of the $13.8 million carrying value of our investment balance plus the $26.3 million outstanding balance of the loan we have provided to the joint venture. The assets of the 2827 Peachtree joint venture can be used only to settle obligations of the joint venture, and its creditors have no recourse to our wholly owned assets.

Consolidated Affiliate

- HRLP MTW, LLC (“Midtown West joint venture”)

In 2019, we formed the Midtown West joint Venture in Tampa with Bromley. We own an 80.0% interest in this joint venture. We determined that we have a variable interest in the Midtown West joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us as both a debt and an equity holder and Bromley as an equity holder. The Midtown West joint venture was further determined to be a variable interest entity as it requires additional subordinated financial support in the form of a loan because the initial equity investments provided by us and Bromley are not sufficient to finance its planned investments and operations. We, as majority owner and managing member and through our control rights as set forth in the joint venture’s governance documents, were determined to be the primary beneficiary as we have both the power to direct the activities that most significantly affect the entity (primarily lease rates, property operations and capital expenditures) and significant economic exposure through our equity investment and loan commitment. As such, the Midtown West joint venture is consolidated and all intercompany transactions and accounts are eliminated. The following table sets forth the assets and liabilities of the Midtown West joint venture included on our Consolidated Balance Sheets:

June 30,
2023		December 31,
2022
Net real estate assets$60,976 $59,854 
Cash and cash equivalents$2,352 $1,009 
Accounts receivable$553 $1,490 
Accrued straight-line rents receivable$4,274 $1,921 
Deferred leasing costs, net$2,658 $2,677 
Prepaid expenses and other assets, net$135 $153 
Accounts payable, accrued expenses and other liabilities$3,022 $1,212 
The assets of the Midtown West joint venture can be used only to settle obligations of the joint venture, and its creditors have no recourse to our wholly owned assets.
v3.23.2
Real Estate Assets
 6 Months Ended
Jun. 30, 2023
Real Estate [Abstract]  
Real Estate Assets Real Estate Assets
Acquisitions

During 2021, we acquired development land in Nashville for a purchase price, including capitalized acquisition costs, of $16.0 million, which was expected to be paid in or prior to the second quarter of 2023. This amount has been paid in full as of June 30, 2023.

During the second quarter of 2023, we acquired land in Raleigh for a purchase price, including capitalized acquisition costs, of $2.7 million.

Dispositions

During the second quarter of 2023, we sold three buildings in Tampa and Raleigh for an aggregate sales price of $51.3 million and recorded aggregate gains on disposition of property of $19.4 million.
v3.23.2
Intangible Assets and Below Market Lease Liabilities
 6 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
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:

June 30,
2023		December 31,
2022
Assets:
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)$407,380 $416,579 
Less accumulated amortization(168,187)(163,751)
$239,193 $252,828 
Liabilities (in accounts payable, accrued expenses and other liabilities):
Acquisition-related below market lease liabilities$54,336 $55,304 
Less accumulated amortization(31,425)(29,859)
$22,911 $25,445 

The following table sets forth amortization of intangible assets and below market lease liabilities:

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)$11,481 $10,933 $21,713 $22,178 
Amortization of lease incentives (in rental and other revenues)$614 $419 $1,328 $869 
Amortization of acquisition-related intangible assets (in rental and other revenues)$869 $821 $1,700 $1,651 
Amortization of acquisition-related below market lease liabilities (in rental and other revenues)$(1,280)$(1,319)$(2,534)$(2,686)

The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:

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 Below Market Lease Liabilities (in Rental and Other Revenues)
July 1 through December 31, 2023$21,782 $1,187 $1,602 $(2,485)
202438,212 1,903 3,088 (4,240)
202530,644 1,811 2,220 (2,727)
202626,360 1,611 1,860 (2,431)
202722,670 1,412 1,518 (2,062)
Thereafter71,641 4,074 5,598 (8,966)
$211,309 $11,998 $15,886 $(22,911)
Weighted average remaining amortization periods as of June 30, 2023 (in years)7.67.57.38.2
v3.23.2
Mortgages and Notes Payable
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Mortgages and Notes Payable Mortgages and Notes Payable
The following table sets forth our mortgages and notes payable:

June 30,
2023		December 31,
2022
Secured indebtedness$679,906 $483,988 
Unsecured indebtedness2,534,203 2,729,620 
Less-unamortized debt issuance costs(16,028)(16,393)
Total mortgages and notes payable, net$3,198,081 $3,197,215 

As of June 30, 2023, our secured mortgage loans were collateralized by real estate assets with an undepreciated book value of $1,164.7 million.

Our $750.0 million unsecured revolving credit facility is scheduled to mature in March 2025 and includes an accordion feature that currently allows for an additional $200.0 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 on our revolving credit facility is SOFR plus a related spread adjustment of 10 basis points and a borrowing spread of 85 basis points, based on current credit ratings. The annual facility fee is 20 basis points. The interest rate and facility fee are based on the higher of the publicly announced ratings from Moody’s Investors Service or Standard & Poor’s Ratings Services. We may be entitled to a temporary reduction in the interest rate of one basis point provided we meet certain sustainability goals with respect to the ongoing reduction of greenhouse gas emissions. There was $190.0 million and $185.0 million outstanding under our revolving credit facility as of June 30, 2023 and July 18, 2023, respectively. As of both June 30, 2023 and July 18, 2023, we had $0.9 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 as of June 30, 2023 and July 18, 2023 was $559.1 million and $564.1 million, respectively.

During the first quarter of 2023, we obtained a $200.0 million, five-year secured mortgage loan from a third party lender, with an effective fixed interest rate of 5.69%. This loan is scheduled to mature in April 2028. We incurred $1.3 million of debt issuance costs, which will be amortized over the term of the loan.

We are currently in compliance with financial covenants with respect to our consolidated debt.

We have considered our short-term liquidity needs within one year from July 25, 2023 (the date of issuance of the quarterly financial statements) and the adequacy of our estimated cash flows from operating activities and other available financing sources to meet these needs. We have concluded it is probable we will meet these short-term liquidity requirements through a combination of the following:

•available cash and cash equivalents;

•cash flows from operating activities;

•issuance of debt securities by the Operating Partnership;

•issuance of secured debt;

•bank term loans;

•borrowings under our revolving credit facility;

•issuance of equity securities by the Company or the Operating Partnership; and

•the disposition of non-core assets.
v3.23.2
Noncontrolling Interests
 6 Months Ended
Jun. 30, 2023
Noncontrolling Interest [Abstract]  
Noncontrolling Interests Noncontrolling Interests
Noncontrolling Interests in Consolidated Affiliates

As of June 30, 2023, our noncontrolling interest in consolidated affiliates relates to our joint venture partner's 20.0% interest in the Midtown West joint venture. 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:

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Beginning noncontrolling interests in the Operating Partnership$54,682 $114,570 $65,977 $111,689 
Adjustment of noncontrolling interests in the Operating Partnership to fair value1,915 (28,696)(9,187)(25,528)
Conversions of Common Units to Common Stock— (1,251)— (1,251)
Redemptions of Common Units(163)— (163)— 
Net income attributable to noncontrolling interests in the Operating Partnership947 1,203 1,933 2,168 
Distributions to noncontrolling interests in the Operating Partnership(1,175)(1,243)(2,354)(2,495)
Total noncontrolling interests in the Operating Partnership$56,206 $84,583 $56,206 $84,583 

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 June 30,Six Months Ended June 30,
2023202220232022
Net income available for common stockholders$42,298 $50,511 $86,132 $90,771 
Increase in additional paid in capital from conversions of Common Units to Common Stock— 1,251 — 1,251 
Redemptions of Common Units163 — 163 — 
Change from net income available for common stockholders and transfers from noncontrolling interests$42,461 $51,762 $86,295 $92,022 
v3.23.2
Disclosure About Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Disclosure About Fair Value of Financial Instruments Disclosure About Fair Value of Financial Instruments
The following summarizes the 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 assets include the fair value of our mortgages and notes receivable. Our Level 2 liabilities include the fair value of our mortgages and notes payable and any 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 any 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 interest rates (forward curves) derived from observed market interest rate curves. In addition, credit valuation adjustments are considered 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 any real estate assets recorded at fair value on a non-recurring basis as a result of our quarterly impairment analysis, which are valued using unobservable local and national industry market data such as comparable sales, appraisals, brokers’ opinions of value and/or the terms of definitive sales contracts. Significant increases or decreases in any valuation inputs in isolation would result in a significantly lower or higher fair value measurement.

The following table sets forth our assets and liabilities and the Company’s noncontrolling interests in the Operating Partnership that are measured or disclosed at fair value within the fair value hierarchy:

Level 1Level 2
TotalQuoted Prices
in Active
Markets for Identical Assets or Liabilities		Significant Observable Inputs
Fair Value as of June 30, 2023:
Assets:
Mortgages and notes receivable, at fair value (1)
$9,891 $— $9,891 
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
2,170 2,170 — 
Total Assets$12,061 $2,170 $9,891 
Noncontrolling Interests in the Operating Partnership$56,206 $56,206 $— 
Liabilities:
Mortgages and notes payable, net, at fair value (1)
$2,794,846 $— $2,794,846 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
2,170 2,170 — 
Total Liabilities
$2,797,016 $2,170 $2,794,846 
Fair Value as of December 31, 2022:
Assets:
Mortgages and notes receivable, at fair value (1)
$1,051 $— $1,051 
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
2,564 2,564 — 
Total Assets$3,615 $2,564 $1,051 
Noncontrolling Interests in the Operating Partnership$65,977 $65,977 $— 
Liabilities:
Mortgages and notes payable, net, at fair value (1)
$2,832,973 $— $2,832,973 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
2,564 2,564 — 
Total Liabilities
$2,835,537 $2,564 $2,832,973 
__________
(1)    Amounts are not recorded at fair value on our Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022.

As of January 1, 2023, there was a level 3 investment in Markel that was measured at a fair value of $57.1 million upon deconsolidation. The estimated fair value was calculated using a broker opinion of value, which incorporates an income approach, as observable inputs were not available. Key assumptions used in the fair value calculation for the operating buildings were an estimated discount rate of 10.8% and an estimated terminal capitalization rate of 8.8%. The estimated fair value of the surrounding land currently used for parking was calculated based on its multifamily development potential, which was determined to be the highest and best use of the land.
v3.23.2
Share-Based Payments
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Share-Based Payments Share-Based PaymentsDuring the six months ended June 30, 2023, the Company granted 151,349 shares of time-based restricted stock and 122,484 shares of total return-based restricted stock with weighted average grant date fair values per share of $26.47 and $27.13, respectively. We recorded share-based compensation expense of $0.8 million during each of the three months ended June 30, 2023 and 2022, and $5.3 million and $6.1 million during the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, there was $5.5 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.3 years.
v3.23.2
Real Estate and Other Assets Held For Sale
 6 Months Ended
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Real Estate and Other Assets Held For Sale Real Estate and Other Assets Held For Sale
The following table sets forth the assets held for sale as of June 30, 2023 and December 31, 2022, which are considered non-core:

June 30,
2023		December 31,
2022
Assets:
Land$513 $— 
Buildings and tenant improvements846 — 
Land held for development3,294 — 
Less-accumulated depreciation(131)— 
Net real estate assets4,522 — 
Prepaid expenses and other assets, net170 — 
Real estate and other assets, net, held for sale$4,692 $— 
v3.23.2
Earnings Per Share and Per Unit
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
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 June 30,Six Months Ended June 30,
2023202220232022
Earnings per Common Share - basic:
Numerator:
Net income$43,870 $52,602 $88,824 $94,705 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(947)(1,203)(1,933)(2,168)
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (4)(266)483 (523)
Dividends on Preferred Stock(621)(622)(1,242)(1,243)
Net income available for common stockholders$42,298 $50,511 $86,132 $90,771 
Denominator:
Denominator for basic earnings per Common Share – weighted average shares (1)
105,457 105,163 105,373 105,049 
Net income available for common stockholders$0.40 $0.48 $0.82 $0.86 
Earnings per Common Share - diluted:
Numerator:
Net income$43,870 $52,602 $88,824 $94,705 
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates(4)(266)483 (523)
Dividends on Preferred Stock(621)(622)(1,242)(1,243)
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
$43,245 $51,714 $88,065 $92,939 
Denominator:
Denominator for basic earnings per Common Share – weighted average shares (1)
105,457 105,163 105,373 105,049 
Add:
Stock options using the treasury method— 5 — 10 
Noncontrolling interests Common Units2,351 2,486 2,355 2,495 
Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions
107,808 107,654 107,728 107,554 
Net income available for common stockholders$0.40 $0.48 $0.82 $0.86 
__________
(1)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 June 30,Six Months Ended June 30,
2023202220232022
Earnings per Common Unit - basic:
Numerator:
Net income$43,870 $52,602 $88,824 $94,705 
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates(4)(266)483 (523)
Distributions on Preferred Units(621)(622)(1,242)(1,243)
Net income available for common unitholders$43,245 $51,714 $88,065 $92,939 
Denominator:
Denominator for basic earnings per Common Unit – weighted average units (1)
107,399 107,240 107,319 107,135 
Net income available for common unitholders$0.40 $0.48 $0.82 $0.87 
Earnings per Common Unit - diluted:
Numerator:
Net income$43,870 $52,602 $88,824 $94,705 
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates(4)(266)483 (523)
Distributions on Preferred Units(621)(622)(1,242)(1,243)
Net income available for common unitholders$43,245 $51,714 $88,065 $92,939 
Denominator:
Denominator for basic earnings per Common Unit – weighted average units (1)
107,399 107,240 107,319 107,135 
Add:
Stock options using the treasury method— 5 — 10 
Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions
107,399 107,245 107,319 107,145 
Net income available for common unitholders$0.40 $0.48 $0.82 $0.87 
__________
(1)Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable
.
v3.23.2
Segment Information
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
The following tables summarize rental and other revenues and net operating income for our office properties. Net operating income is the primary industry property-level performance metric used by our chief operating decision maker and is defined as rental and other revenues less rental property and other expenses. Our segment information for the three and six months ended June 30, 2022 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments as a result of our plan to exit the Pittsburgh market.

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Rental and Other Revenues:
Atlanta$35,455 $35,447 $72,325 $71,001 
Charlotte20,793 16,874 42,373 33,818 
Nashville42,636 42,606 87,200 86,053 
Orlando14,550 13,352 28,944 26,664 
Raleigh45,701 45,535 91,579 91,831 
Richmond9,048 10,432 18,357 20,965 
Tampa24,953 23,556 50,344 47,579 
Total Office Segment193,136 187,802 391,122 377,911 
Other14,155 16,039 28,921 32,308 
Total Rental and Other Revenues$207,291 $203,841 $420,043 $410,219 
Net Operating Income:
Atlanta$22,268 $23,267 $46,493 $46,948 
Charlotte15,221 12,807 31,331 25,857 
Nashville31,116 31,417 64,141 63,939 
Orlando8,852 8,262 17,624 16,399 
Raleigh33,670 34,020 67,276 68,735 
Richmond6,353 7,363 12,923 14,588 
Tampa15,636 14,615 32,040 30,561 
Total Office Segment133,116 131,751 271,828 267,027 
Other7,868 9,721 16,177 19,401 
Total Net Operating Income140,984 141,472 288,005 286,428 
Reconciliation to net income:
Depreciation and amortization(75,018)(69,742)(145,651)(139,409)
Impairments of real estate assets— (35,000)— (35,000)
General and administrative expenses(9,380)(9,591)(21,795)(23,147)
Interest expense(34,063)(25,027)(67,161)(49,420)
Other income1,181 120 2,328 483 
Gains on disposition of property19,368 50,044 19,818 54,144 
Gain on deconsolidation of affiliate— — 11,778 — 
Equity in earnings of unconsolidated affiliates798 326 1,502 626 
Net income$43,870 $52,602 $88,824 $94,705 
v3.23.2
Subsequent Events
 6 Months Ended
Jun. 30, 2023
Subsequent Events [Abstract]  
Subsequent Events Subsequent EventsOn July 19, 2023, the Company declared a cash dividend of $0.50 per share of Common Stock, which is payable on September 12, 2023 to stockholders of record as of August 21, 2023.
v3.23.2
Description of Business and Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
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. We consolidate joint venture investments, such as interests in partnerships and limited liability companies, when we control the major operating and financial policies of the investment through majority ownership, in our capacity as a general partner or managing member or through some other contractual right. In addition, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary.

As of June 30, 2023, we are involved with six entities we determined to be variable interest entities, one of which we are the primary beneficiary and is consolidated and five of which we are not the primary beneficiary and are not consolidated. We also own three properties through a joint venture investment that were deconsolidated effective January 1, 2023 (See Note 3).

All intercompany transactions and accounts have been eliminated.
In the opinion of management, the unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information 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 2022 Annual Report on Form 10-K.
Use of Estimates
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 our Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates.
Insurance InsuranceWe are primarily self-insured for health care claims for participating employees. To limit our exposure to significant claims, we have stop-loss coverage on a per claim and annual aggregate basis. We use all relevant information to determine our liabilities for claims, including actuarial estimates of claim liabilities. When determining our liabilities, we include claims for incurred losses, even if they are unreported.
Recently Issued Accounting Standards
Recently Issued Accounting Standards

The Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that provides temporary optional expedients and exceptions to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). These optional expedients and exceptions provide guidance on contract modifications and hedge accounting. If certain criteria are met, entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. The guidance in this ASU is optional and may be elected now through December 31, 2024 as reference rate reform activities occur. We will continue to evaluate the impact of this ASU; however, we currently expect to avail ourselves of such optional expedients and exceptions should our modified contracts meet the required criteria.
v3.23.2
Variable Interest Entities (Tables)
 6 Months Ended
Jun. 30, 2023
Variable Interest Entities [Abstract]  
Schedule of Variable Interest Entities The following table sets forth the assets and liabilities of the Midtown West joint venture included on our Consolidated Balance Sheets:
June 30,
2023		December 31,
2022
Net real estate assets$60,976 $59,854 
Cash and cash equivalents$2,352 $1,009 
Accounts receivable$553 $1,490 
Accrued straight-line rents receivable$4,274 $1,921 
Deferred leasing costs, net$2,658 $2,677 
Prepaid expenses and other assets, net$135 $153 
Accounts payable, accrued expenses and other liabilities$3,022 $1,212 
v3.23.2
Intangible Assets and Below Market Lease Liabilities (Tables)
 6 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Total 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:

June 30,
2023		December 31,
2022
Assets:
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)$407,380 $416,579 
Less accumulated amortization(168,187)(163,751)
$239,193 $252,828 
Liabilities (in accounts payable, accrued expenses and other liabilities):
Acquisition-related below market lease liabilities$54,336 $55,304 
Less accumulated amortization(31,425)(29,859)
$22,911 $25,445 
Amortization of Intangible Assets and Below Market Lease Liabilities
The following table sets forth amortization of intangible assets and below market lease liabilities:

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)$11,481 $10,933 $21,713 $22,178 
Amortization of lease incentives (in rental and other revenues)$614 $419 $1,328 $869 
Amortization of acquisition-related intangible assets (in rental and other revenues)$869 $821 $1,700 $1,651 
Amortization of acquisition-related below market lease liabilities (in rental and other revenues)$(1,280)$(1,319)$(2,534)$(2,686)
Scheduled Future Amortization of Intangible Assets and Below Market Lease Liabilities
The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:

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 Below Market Lease Liabilities (in Rental and Other Revenues)
July 1 through December 31, 2023$21,782 $1,187 $1,602 $(2,485)
202438,212 1,903 3,088 (4,240)
202530,644 1,811 2,220 (2,727)
202626,360 1,611 1,860 (2,431)
202722,670 1,412 1,518 (2,062)
Thereafter71,641 4,074 5,598 (8,966)
$211,309 $11,998 $15,886 $(22,911)
Weighted average remaining amortization periods as of June 30, 2023 (in years)7.67.57.38.2
v3.23.2
Mortgages and Notes Payable (Tables)
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Consolidated Mortgages and Notes Payable
The following table sets forth our mortgages and notes payable:

June 30,
2023		December 31,
2022
Secured indebtedness$679,906 $483,988 
Unsecured indebtedness2,534,203 2,729,620 
Less-unamortized debt issuance costs(16,028)(16,393)
Total mortgages and notes payable, net$3,198,081 $3,197,215 
v3.23.2
Noncontrolling Interests (Tables) - Highwoods Properties, Inc. [Member]
 6 Months Ended
Jun. 30, 2023
Noncontrolling Interest [Line Items]  
Noncontrolling Interests in the Operating Partnership
The following table sets forth the Company’s noncontrolling interests in the Operating Partnership:

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Beginning noncontrolling interests in the Operating Partnership$54,682 $114,570 $65,977 $111,689 
Adjustment of noncontrolling interests in the Operating Partnership to fair value1,915 (28,696)(9,187)(25,528)
Conversions of Common Units to Common Stock— (1,251)— (1,251)
Redemptions of Common Units(163)— (163)— 
Net income attributable to noncontrolling interests in the Operating Partnership947 1,203 1,933 2,168 
Distributions to noncontrolling interests in the Operating Partnership(1,175)(1,243)(2,354)(2,495)
Total noncontrolling interests in the Operating Partnership$56,206 $84,583 $56,206 $84,583 
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership
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 June 30,Six Months Ended June 30,
2023202220232022
Net income available for common stockholders$42,298 $50,511 $86,132 $90,771 
Increase in additional paid in capital from conversions of Common Units to Common Stock— 1,251 — 1,251 
Redemptions of Common Units163 — 163 — 
Change from net income available for common stockholders and transfers from noncontrolling interests$42,461 $51,762 $86,295 $92,022 
v3.23.2
Disclosure About Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements of Assets, Liabilities and Noncontrolling Interests
The following table sets forth our assets and liabilities and the Company’s noncontrolling interests in the Operating Partnership that are measured or disclosed at fair value within the fair value hierarchy:

Level 1Level 2
TotalQuoted Prices
in Active
Markets for Identical Assets or Liabilities		Significant Observable Inputs
Fair Value as of June 30, 2023:
Assets:
Mortgages and notes receivable, at fair value (1)
$9,891 $— $9,891 
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
2,170 2,170 — 
Total Assets$12,061 $2,170 $9,891 
Noncontrolling Interests in the Operating Partnership$56,206 $56,206 $— 
Liabilities:
Mortgages and notes payable, net, at fair value (1)
$2,794,846 $— $2,794,846 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
2,170 2,170 — 
Total Liabilities
$2,797,016 $2,170 $2,794,846 
Fair Value as of December 31, 2022:
Assets:
Mortgages and notes receivable, at fair value (1)
$1,051 $— $1,051 
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
2,564 2,564 — 
Total Assets$3,615 $2,564 $1,051 
Noncontrolling Interests in the Operating Partnership$65,977 $65,977 $— 
Liabilities:
Mortgages and notes payable, net, at fair value (1)
$2,832,973 $— $2,832,973 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
2,564 2,564 — 
Total Liabilities
$2,835,537 $2,564 $2,832,973 
__________
(1)    Amounts are not recorded at fair value on our Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022.
v3.23.2
Real Estate and Other Assets Held For Sale (Tables)
 6 Months Ended
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Real Estate and Other Assets of the Properties Classified As Held For Sale
The following table sets forth the assets held for sale as of June 30, 2023 and December 31, 2022, which are considered non-core:

June 30,
2023		December 31,
2022
Assets:
Land$513 $— 
Buildings and tenant improvements846 — 
Land held for development3,294 — 
Less-accumulated depreciation(131)— 
Net real estate assets4,522 — 
Prepaid expenses and other assets, net170 — 
Real estate and other assets, net, held for sale$4,692 $— 
v3.23.2
Earnings Per Share and Per Unit (Tables)
 6 Months Ended
Jun. 30, 2023
Earnings Per Share and Per Unit Basic and Diluted [Line Items]  
Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share of the Company:

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Earnings per Common Share - basic:
Numerator:
Net income$43,870 $52,602 $88,824 $94,705 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(947)(1,203)(1,933)(2,168)
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (4)(266)483 (523)
Dividends on Preferred Stock(621)(622)(1,242)(1,243)
Net income available for common stockholders$42,298 $50,511 $86,132 $90,771 
Denominator:
Denominator for basic earnings per Common Share – weighted average shares (1)
105,457 105,163 105,373 105,049 
Net income available for common stockholders$0.40 $0.48 $0.82 $0.86 
Earnings per Common Share - diluted:
Numerator:
Net income$43,870 $52,602 $88,824 $94,705 
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates(4)(266)483 (523)
Dividends on Preferred Stock(621)(622)(1,242)(1,243)
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
$43,245 $51,714 $88,065 $92,939 
Denominator:
Denominator for basic earnings per Common Share – weighted average shares (1)
105,457 105,163 105,373 105,049 
Add:
Stock options using the treasury method— 5 — 10 
Noncontrolling interests Common Units2,351 2,486 2,355 2,495 
Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions
107,808 107,654 107,728 107,554 
Net income available for common stockholders$0.40 $0.48 $0.82 $0.86 
__________
(1)Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
Highwoods Realty Limited Partnership  
Earnings Per Share and Per Unit Basic and Diluted [Line Items]  
Earnings Per Unit
The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership:

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Earnings per Common Unit - basic:
Numerator:
Net income$43,870 $52,602 $88,824 $94,705 
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates(4)(266)483 (523)
Distributions on Preferred Units(621)(622)(1,242)(1,243)
Net income available for common unitholders$43,245 $51,714 $88,065 $92,939 
Denominator:
Denominator for basic earnings per Common Unit – weighted average units (1)
107,399 107,240 107,319 107,135 
Net income available for common unitholders$0.40 $0.48 $0.82 $0.87 
Earnings per Common Unit - diluted:
Numerator:
Net income$43,870 $52,602 $88,824 $94,705 
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates(4)(266)483 (523)
Distributions on Preferred Units(621)(622)(1,242)(1,243)
Net income available for common unitholders$43,245 $51,714 $88,065 $92,939 
Denominator:
Denominator for basic earnings per Common Unit – weighted average units (1)
107,399 107,240 107,319 107,135 
Add:
Stock options using the treasury method— 5 — 10 
Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions
107,399 107,245 107,319 107,145 
Net income available for common unitholders$0.40 $0.48 $0.82 $0.87 
__________
(1)Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable
.
v3.23.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated
The following tables summarize rental and other revenues and net operating income for our office properties. Net operating income is the primary industry property-level performance metric used by our chief operating decision maker and is defined as rental and other revenues less rental property and other expenses. Our segment information for the three and six months ended June 30, 2022 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments as a result of our plan to exit the Pittsburgh market.

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Rental and Other Revenues:
Atlanta$35,455 $35,447 $72,325 $71,001 
Charlotte20,793 16,874 42,373 33,818 
Nashville42,636 42,606 87,200 86,053 
Orlando14,550 13,352 28,944 26,664 
Raleigh45,701 45,535 91,579 91,831 
Richmond9,048 10,432 18,357 20,965 
Tampa24,953 23,556 50,344 47,579 
Total Office Segment193,136 187,802 391,122 377,911 
Other14,155 16,039 28,921 32,308 
Total Rental and Other Revenues$207,291 $203,841 $420,043 $410,219 
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
Net Operating Income:
Atlanta$22,268 $23,267 $46,493 $46,948 
Charlotte15,221 12,807 31,331 25,857 
Nashville31,116 31,417 64,141 63,939 
Orlando8,852 8,262 17,624 16,399 
Raleigh33,670 34,020 67,276 68,735 
Richmond6,353 7,363 12,923 14,588 
Tampa15,636 14,615 32,040 30,561 
Total Office Segment133,116 131,751 271,828 267,027 
Other7,868 9,721 16,177 19,401 
Total Net Operating Income140,984 141,472 288,005 286,428 
Reconciliation to net income:
Depreciation and amortization(75,018)(69,742)(145,651)(139,409)
Impairments of real estate assets— (35,000)— (35,000)
General and administrative expenses(9,380)(9,591)(21,795)(23,147)
Interest expense(34,063)(25,027)(67,161)(49,420)
Other income1,181 120 2,328 483 
Gains on disposition of property19,368 50,044 19,818 54,144 
Gain on deconsolidation of affiliate— — 11,778 — 
Equity in earnings of unconsolidated affiliates798 326 1,502 626 
Net income$43,870 $52,602 $88,824 $94,705 
v3.23.2
Description of Business and Significant Accounting Policies (Details)
$ in Thousands, ft² in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
USD ($)
ft²
numberOfEntities
shares
Mar. 31, 2023
USD ($)
Jun. 30, 2022
USD ($)
Jun. 30, 2023
USD ($)
ft²
numberOfEntities
shares
Jun. 30, 2022
USD ($)
Jan. 01, 2023
numberOfProperties
Description of Business [Abstract]            
Rentable square feet of commercial real estate properties (in sq feet) | ft² 28.5     28.5    
Rentable square feet of commercial real estate office properties under development (in sq feet) | ft² 1.6     1.6    
Rentable square feet of potential office build (in sq feet) | ft² 5.2     5.2    
Common Units redeemed for cash (in shares)       7,294    
Net proceeds of Common Stock sold during the period | $ $ 265   $ 262 $ (563) $ 4,435  
Number of Common Stock sold during the period (in shares) 0     0    
Number of VIE entities | numberOfEntities 6     6    
Number of deconsolidated joint venture properties | numberOfProperties           3
Self insurance liability | $ $ 500     $ 500    
Highwoods Properties, Inc. [Member]            
Description of Business [Abstract]            
Common Units of partnership owned by the Company (in shares) 105,100,000     105,100,000    
Percentage of ownership of Common Units (in hundredths) 97.80%     97.80%    
Highwoods Properties, Inc. [Member] | ATM Equity Offering | Maximum [Member]            
Description of Business [Abstract]            
Net proceeds of Common Stock sold during the period | $   $ 300,000        
Highwoods Realty Limited Partnership            
Description of Business [Abstract]            
Common Units of partnership not owned by the Company (in shares) 2,400,000     2,400,000    
Variable Interest Entity, Primary Beneficiary [Member]            
Description of Business [Abstract]            
Number of VIE entities | numberOfEntities 1     1    
Variable Interest Entity, Non Primary Beneficiary [Member]            
Description of Business [Abstract]            
Number of VIE entities | numberOfEntities 5     5    
v3.23.2
Leases ASC 842 (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Lessor Disclosure [Abstract]        
Rental and other revenues related to operating lease payments $ 203.8 $ 200.7 $ 413.2 $ 404.3
Variable lease income $ 17.5 $ 17.7 $ 37.0 $ 35.0
Minimum [Member]        
Lessor Disclosure [Abstract]        
Operating leases, term of leases (in years) 3 years   3 years  
Maximum [Member]        
Lessor Disclosure [Abstract]        
Operating leases, term of leases (in years) 10 years   10 years  
v3.23.2
Investments in and Advances to Affiliates (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
Jun. 30, 2022
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Dec. 31, 2022
numberOfJointVentures
Schedule of Equity Method Investments [Line Items]            
Gain on deconsolidation of affiliate $ 0   $ 0 $ 11,778 $ 0  
Number of joint ventures formed | numberOfJointVentures           2
Highwoods-Markel Associates, LLC Joint Venture            
Schedule of Equity Method Investments [Line Items]            
Percentage of equity interest in joint venture (in hundredths) 50.00%     50.00%    
Gain on deconsolidation of affiliate   $ 11,800        
Granite Park Six JV, LLC            
Schedule of Equity Method Investments [Line Items]            
Percentage of equity interest in joint venture (in hundredths) 50.00%     50.00%    
GPI23 Springs JV, LLC            
Schedule of Equity Method Investments [Line Items]            
Percentage of equity interest in joint venture (in hundredths) 50.00%     50.00%    
M+O JV, LLC            
Schedule of Equity Method Investments [Line Items]            
Percentage of equity interest in joint venture (in hundredths) 50.00%     50.00%    
Midtown East Tampa, LLC            
Schedule of Equity Method Investments [Line Items]            
Percentage of equity interest in joint venture (in hundredths) 50.00%     50.00%    
Brand/HRLP 2827 Peachtree LLC            
Schedule of Equity Method Investments [Line Items]            
Percentage of equity interest in joint venture (in hundredths) 50.00%     50.00%    
v3.23.2
Variable Interest Entities (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Variable Interest Entities [Line Items]        
Additional common equity contribution   $ 77,736,000 $ 7,500,000  
Repayments of preferred equity from unconsolidated affiliates   80,000,000 0  
Investments in and advances to unconsolidated affiliates $ 294,160,000 294,160,000   $ 269,221,000
Assets and liabilities of consolidated variable interest entity [Abstract]        
Net real estate assets 5,055,018,000 5,055,018,000   5,126,925,000
Cash and cash equivalents 17,011,000 17,011,000 $ 25,045,000 21,357,000
Accounts receivable 20,552,000 20,552,000   25,481,000
Accrued straight-line rents receivable 303,781,000 303,781,000   293,674,000
Deferred leasing costs, net 239,193,000 239,193,000   252,828,000
Prepaid expense and other assets, net 78,053,000 78,053,000   68,091,000
Accounts payable, accrued expenses and other liabilities 297,601,000 297,601,000   301,184,000
Revolving Credit Facility [Member]        
Variable Interest Entities [Line Items]        
Maximum borrowing capacity on credit facility 750,000,000 $ 750,000,000    
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility [Member]        
Variable Interest Entities [Line Items]        
Facility interest rate basis   SOFR    
Interest rate, basis spread (in hundredths)   0.85%    
Granite Park Six JV, LLC        
Variable Interest Entities [Line Items]        
Risk of loss limited to carrying value 41,400,000 $ 41,400,000    
GPI23 Springs JV, LLC        
Variable Interest Entities [Line Items]        
Risk of loss limited to carrying value 55,300,000 55,300,000    
M+O JV, LLC        
Variable Interest Entities [Line Items]        
Risk of loss limited to carrying value 123,500,000 123,500,000    
Additional common equity contribution 40,000,000      
Repayments of preferred equity from unconsolidated affiliates 80,000,000      
Net proceeds from redemption of preferred equity $ 40,000,000      
M+O JV, LLC | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate        
Variable Interest Entities [Line Items]        
Facility interest rate basis SOFR      
Interest rate, basis spread (in hundredths) 3.50%      
Midtown East Tampa, LLC        
Variable Interest Entities [Line Items]        
Risk of loss limited to carrying value $ 3,400,000 3,400,000    
Amount of loan funded to affiliate 0 0    
Brand/HRLP 2827 Peachtree LLC        
Variable Interest Entities [Line Items]        
Risk of loss limited to carrying value 40,100,000 40,100,000    
Amount of loan funded to affiliate 26,300,000 26,300,000    
Investments in and advances to unconsolidated affiliates $ 13,800,000 $ 13,800,000    
HRLP MTW, LLC [Member]        
Variable Interest Entities [Line Items]        
Interest in joint venture (in hundredths) 80.00% 80.00%    
Assets and liabilities of consolidated variable interest entity [Abstract]        
Net real estate assets $ 60,976,000 $ 60,976,000   59,854,000
Cash and cash equivalents 2,352,000 2,352,000   1,009,000
Accounts receivable 553,000 553,000   1,490,000
Accrued straight-line rents receivable 4,274,000 4,274,000   1,921,000
Deferred leasing costs, net 2,658,000 2,658,000   2,677,000
Prepaid expense and other assets, net 135,000 135,000   153,000
Accounts payable, accrued expenses and other liabilities $ 3,022,000 $ 3,022,000   $ 1,212,000
v3.23.2
Real Estate Assets (Details)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2023
USD ($)
numberOfBuildings
Jun. 30, 2022
USD ($)
Jun. 30, 2023
USD ($)
numberOfBuildings
Jun. 30, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dispositions [Abstract]          
Gains on disposition of property $ 19,368 $ 50,044 $ 19,818 $ 54,144  
Nashville TN Land Acquisitions          
Acquisitions [Abstract]          
Acquisition purchase price         $ 16,000
Raleigh NC Land Acquisition [Member]          
Acquisitions [Abstract]          
Acquisition purchase price $ 2,700        
2023 Dispositions [Member]          
Dispositions [Abstract]          
Number of buildings sold | numberOfBuildings 3   3    
Sale price of real estate $ 51,300        
Gains on disposition of property $ 19,400        
v3.23.2
Intangible Assets and Below Market Lease Liabilities (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Assets:          
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 407,380   $ 407,380   $ 416,579
Deferred leasing costs, accumulated amortization (168,187)   (168,187)   (163,751)
Deferred leasing costs, net/Total scheduled future amortization of intangible assets 239,193   239,193   252,828
Liabilities (in accounts payable, accrued expenses and other liabilities):          
Acquisition-related below market lease liabilities, gross 54,336   54,336   55,304
Acquisition-related below market lease liabilities, accumulated amortization (31,425)   (31,425)   (29,859)
Acquisition-related below market lease liabilities, net 22,911   22,911   $ 25,445
Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) [Member]          
Assets:          
Deferred leasing costs, net/Total scheduled future amortization of intangible assets 211,309   211,309    
Amortization of intangible assets and below market lease liabilities [Abstract]          
Amortization of intangible assets 11,481 $ 10,933 21,713 $ 22,178  
Lease Incentives (in Rental and Other Revenues) [Member]          
Assets:          
Deferred leasing costs, net/Total scheduled future amortization of intangible assets 11,998   11,998    
Amortization of intangible assets and below market lease liabilities [Abstract]          
Amortization of intangible assets 614 419 1,328 869  
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member]          
Assets:          
Deferred leasing costs, net/Total scheduled future amortization of intangible assets 15,886   15,886    
Amortization of intangible assets and below market lease liabilities [Abstract]          
Amortization of intangible assets 869 821 1,700 1,651  
Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) [Member]          
Liabilities (in accounts payable, accrued expenses and other liabilities):          
Acquisition-related below market lease liabilities, net 22,911   22,911    
Amortization of intangible assets and below market lease liabilities [Abstract]          
Amortization of acquisition-related below market lease liabilities $ (1,280) $ (1,319) $ (2,534) $ (2,686)  
v3.23.2
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Scheduled future amortization of intangible assets [Abstract]    
Deferred leasing costs, net/Total scheduled future amortization of intangible assets $ 239,193 $ 252,828
Scheduled future amortization of below market lease liabilities [Abstract]    
Total scheduled future amortization of acquisition-related below market lease liabilities (22,911) $ (25,445)
Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) [Member]    
Scheduled future amortization of intangible assets [Abstract]    
July 1 through December 31, 2023 21,782  
2024 38,212  
2025 30,644  
2026 26,360  
2027 22,670  
Thereafter 71,641  
Deferred leasing costs, net/Total scheduled future amortization of intangible assets $ 211,309  
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 7 months 6 days  
Lease Incentives (in Rental and Other Revenues) [Member]    
Scheduled future amortization of intangible assets [Abstract]    
July 1 through December 31, 2023 $ 1,187  
2024 1,903  
2025 1,811  
2026 1,611  
2027 1,412  
Thereafter 4,074  
Deferred leasing costs, net/Total scheduled future amortization of intangible assets $ 11,998  
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 6 months  
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member]    
Scheduled future amortization of intangible assets [Abstract]    
July 1 through December 31, 2023 $ 1,602  
2024 3,088  
2025 2,220  
2026 1,860  
2027 1,518  
Thereafter 5,598  
Deferred leasing costs, net/Total scheduled future amortization of intangible assets $ 15,886  
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 3 months 18 days  
Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) [Member]    
Scheduled future amortization of below market lease liabilities [Abstract]    
July 1 through December 31, 2023 $ (2,485)  
2024 (4,240)  
2025 (2,727)  
2026 (2,431)  
2027 (2,062)  
Thereafter (8,966)  
Total scheduled future amortization of acquisition-related below market lease liabilities $ (22,911)  
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 2 months 12 days  
v3.23.2
Mortgages and Notes Payable (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
Jun. 30, 2023
USD ($)
extension
Jul. 18, 2023
USD ($)
Dec. 31, 2022
USD ($)
Debt Instrument [Line Items]          
Mortgages and notes payable $ 3,198,081,000   $ 3,198,081,000   $ 3,197,215,000
Unamortized debt issuance costs $ (16,028,000)   (16,028,000)   (16,393,000)
Maximum liquidity requirements 1 year        
Revolving Credit Facility [Member]          
Debt Instrument [Line Items]          
Maximum borrowing capacity on credit facility $ 750,000,000   750,000,000    
Additional borrowing capacity on revolving credit facility 200,000,000   $ 200,000,000    
Number of additional extensions | extension     2    
Term of optional extension     6 months    
Temporary reduction in interest rate due to sustainability goals (in hundredths)     0.01%    
Amount outstanding on revolving credit facility 190,000,000   $ 190,000,000    
Outstanding letters of credit on revolving credit facility 900,000   900,000    
Unused borrowing capacity on revolving credit facility 559,100,000   559,100,000    
5.69% Mortgage Loan Due 2028 [Member]          
Debt Instrument [Line Items]          
Principal amount of debt   $ 200,000,000      
Term of debt instrument   5 years      
Effective interest rate (in hundredths)   5.69%      
Debt issuance costs   $ 1,300,000      
Secured indebtedness [Member]          
Debt Instrument [Line Items]          
Mortgages and notes payable 679,906,000   679,906,000   483,988,000
Aggregate undepreciated book value of secured real estate assets 1,164,700,000   1,164,700,000    
Unsecured indebtedness [Member]          
Debt Instrument [Line Items]          
Mortgages and notes payable $ 2,534,203,000   $ 2,534,203,000   $ 2,729,620,000
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility [Member]          
Debt Instrument [Line Items]          
Facility interest rate basis     SOFR    
Interest rate, basis spread (in hundredths)     0.85%    
Annual facility fee (in hundredths)     0.20%    
SOFR Related Spread Adjustment [Member] | Revolving Credit Facility [Member]          
Debt Instrument [Line Items]          
Interest rate, basis spread (in hundredths)     0.10%    
Subsequent Event [Member] | Revolving Credit Facility [Member]          
Debt Instrument [Line Items]          
Amount outstanding on revolving credit facility       $ 185,000,000  
Outstanding letters of credit on revolving credit facility       900,000  
Unused borrowing capacity on revolving credit facility       $ 564,100,000  
v3.23.2
Noncontrolling Interests (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Noncontrolling Interests in the Operating Partnership [Roll Forward]        
Beginning noncontrolling interests in the Operating Partnership     $ 65,977  
Adjustment of noncontrolling interests in the Operating Partnership to fair value $ 1,915 $ (28,696) (9,187) $ (25,528)
Conversions of Common Units to Common Stock   (1,251) 0 (1,251)
Redemption of Common Units     (163) 0
Net income attributable to noncontrolling interests in the Operating Partnership 947 1,203 1,933 2,168
Distributions to noncontrolling interests in the Operating Partnership     (2,354) (2,495)
Total noncontrolling interests in the Operating Partnership 56,206   56,206  
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract]        
Net income available for common stockholders 42,298 50,511 86,132 90,771
Highwoods Properties, Inc. [Member]        
Noncontrolling Interests in the Operating Partnership [Roll Forward]        
Beginning noncontrolling interests in the Operating Partnership 54,682 114,570 65,977 111,689
Adjustment of noncontrolling interests in the Operating Partnership to fair value 1,915 (28,696) (9,187) (25,528)
Conversions of Common Units to Common Stock 0 (1,251) 0 (1,251)
Redemption of Common Units (163) 0 (163) 0
Net income attributable to noncontrolling interests in the Operating Partnership 947 1,203 1,933 2,168
Distributions to noncontrolling interests in the Operating Partnership (1,175) (1,243) (2,354) (2,495)
Total noncontrolling interests in the Operating Partnership 56,206 84,583 56,206 84,583
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract]        
Net income available for common stockholders 42,298 50,511 86,132 90,771
Increase in additional paid in capital from conversions of Common Units to Common Stock 0 1,251 0 1,251
Redemptions of Common Units 163 0 163 0
Change from net income available for common stockholders and transfers from noncontrolling interests $ 42,461 $ 51,762 $ 86,295 $ 92,022
Midtown West Joint Venture [Member]        
Noncontrolling Interests in Consolidated Affiliates [Abstract]        
Consolidated joint venture, partner's interest (in hundredths) 20.00%   20.00%  
v3.23.2
Disclosure About Fair Value of Financial Instruments - Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Assets:    
Mortgages and notes receivable, at fair value $ 9,891 $ 1,051
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,170 2,564
Total Assets 12,061 3,615
Liabilities:    
Mortgages and notes payable, net, at fair value 2,794,846 2,832,973
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,170 2,564
Total Liabilities 2,797,016 2,835,537
Level 1 [Member]    
Assets:    
Mortgages and notes receivable, at fair value 0 0
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,170 2,564
Total Assets 2,170 2,564
Liabilities:    
Mortgages and notes payable, net, at fair value 0 0
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,170 2,564
Total Liabilities 2,170 2,564
Level 2 [Member]    
Assets:    
Mortgages and notes receivable, at fair value 9,891 1,051
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 0 0
Total Assets 9,891 1,051
Liabilities:    
Mortgages and notes payable, net, at fair value 2,794,846 2,832,973
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 0 0
Total Liabilities 2,794,846 2,832,973
Highwoods Properties, Inc. [Member]    
Assets:    
Noncontrolling Interests in the Operating Partnership 56,206 65,977
Highwoods Properties, Inc. [Member] | Level 1 [Member]    
Assets:    
Noncontrolling Interests in the Operating Partnership 56,206 65,977
Highwoods Properties, Inc. [Member] | Level 2 [Member]    
Assets:    
Noncontrolling Interests in the Operating Partnership $ 0 $ 0
v3.23.2
Fair Value Measures and Disclosures - Fair Value Measurement Inputs and Valuation Techniques (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Jan. 01, 2023
Valuation Technique and Input [Abstract]    
Fair value of Level 3 investment   $ 57.1
Measurement Input, Discount Rate [Member]    
Valuation Technique and Input [Abstract]    
Investment key assumptions (in hundredths) 10.80%  
Measurement Input, Cap Rate [Member]    
Valuation Technique and Input [Abstract]    
Investment key assumptions (in hundredths) 8.80%  
v3.23.2
Share-Based Payments (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense $ 800 $ 800 $ 5,321 $ 6,136
Total unrecognized share-based compensation costs $ 5,500   $ 5,500  
Weighted average remaining contractual term for recognition of unrecognized share-based compensation costs (in years)     2 years 3 months 18 days  
Highwoods Properties, Inc. [Member] | Time-Based Restricted Stock [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Restricted stock shares granted (in shares)     151,349  
Weighted average grant date fair value of each restricted stock share granted (in dollars per share)     $ 26.47  
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 (in shares)     122,484  
Weighted average grant date fair value of each restricted stock share granted (in dollars per share)     $ 27.13  
v3.23.2
Real Estate and Other Assets Held For Sale (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Real Estate and Other Assets Held For Sale [Abstract]    
Land $ 513 $ 0
Buildings and tenant improvements 846 0
Land held for development 3,294 0
Less-accumulated depreciation (131) 0
Net real estate assets 4,522 0
Prepaid expenses and other assets, net 170 0
Real estate and other assets, net, held for sale $ 4,692 $ 0
v3.23.2
Earnings Per Share and Per Unit (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Earnings per Common Share and Per Unit - basic: [Abstract]        
Net income $ 43,870 $ 52,602 $ 88,824 $ 94,705
Net (income) attributable to noncontrolling interests in the Operating Partnership (947) (1,203) (1,933) (2,168)
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (4) (266) 483 (523)
Dividends on Preferred Stock (621) (622) (1,242) (1,243)
Net income available for common stockholders $ 42,298 $ 50,511 $ 86,132 $ 90,771
Denominator:        
Denominator for basic earnings per Common Share - weighted average shares (in shares) 105,457 105,163 105,373 105,049
Earnings per Common Share - basic:        
Net income available for common stockholders (in dollars per share) $ 0.40 $ 0.48 $ 0.82 $ 0.86
Earnings per Common Share and Per Unit - diluted: [Abstract]        
Net income $ 43,870 $ 52,602 $ 88,824 $ 94,705
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (4) (266) 483 (523)
Dividends on Preferred Stock (621) (622) (1,242) (1,243)
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 43,245 $ 51,714 $ 88,065 $ 92,939
Denominator:        
Denominator for basic earnings per Common Share - weighted average shares (in shares) 105,457 105,163 105,373 105,049
Stock options using the treasury method (in shares) 0 5 0 10
Noncontrolling interests Common Units (in shares) 2,351 2,486 2,355 2,495
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares) 107,808 107,654 107,728 107,554
Earnings per Common Share - diluted:        
Net income available for common stockholders (in dollars per share) $ 0.40 $ 0.48 $ 0.82 $ 0.86
Highwoods Realty Limited Partnership        
Earnings per Common Share and Per Unit - basic: [Abstract]        
Net income $ 43,870 $ 52,602 $ 88,824 $ 94,705
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (4) (266) 483 (523)
Distributions on Preferred Units (621) (622) (1,242) (1,243)
Net income available for common unitholders $ 43,245 $ 51,714 $ 88,065 $ 92,939
Denominator:        
Denominator for basic earnings per Common Unit - weighted average units (in shares) 107,399 107,240 107,319 107,135
Earnings per Common Unit - basic:        
Net income available for common unitholders (in dollars per share) $ 0.40 $ 0.48 $ 0.82 $ 0.87
Earnings per Common Share and Per Unit - diluted: [Abstract]        
Net income $ 43,870 $ 52,602 $ 88,824 $ 94,705
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (4) (266) 483 (523)
Distributions on Preferred Units (621) (622) (1,242) (1,243)
Net income available for common unitholders $ 43,245 $ 51,714 $ 88,065 $ 92,939
Denominator:        
Denominator for basic earnings per Common Unit - weighted average units (in shares) 107,399 107,240 107,319 107,135
Stock options using the treasury method (in shares) 0 5 0 10
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares) 107,399 107,245 107,319 107,145
Earnings per Common Unit - diluted:        
Net income available for common unitholders (in dollars per share) $ 0.40 $ 0.48 $ 0.82 $ 0.87
v3.23.2
Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues $ 207,291 $ 203,841 $ 420,043 $ 410,219
Total Net Operating Income 140,984 141,472 288,005 286,428
Reconciliation to net income:        
Depreciation and amortization (75,018) (69,742) (145,651) (139,409)
Impairments of real estate assets 0 (35,000) 0 (35,000)
General and administrative expenses (9,380) (9,591) (21,795) (23,147)
Interest expense (34,063) (25,027) (67,161) (49,420)
Other income 1,181 120 2,328 483
Gains on disposition of property 19,368 50,044 19,818 54,144
Gain on deconsolidation of affiliate 0 0 11,778 0
Equity in earnings of unconsolidated affiliates 798 326 1,502 626
Net income 43,870 52,602 88,824 94,705
Total Office Segment [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 193,136 187,802 391,122 377,911
Total Net Operating Income 133,116 131,751 271,828 267,027
Office Atlanta, GA [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 35,455 35,447 72,325 71,001
Total Net Operating Income 22,268 23,267 46,493 46,948
Office Charlotte, NC [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 20,793 16,874 42,373 33,818
Total Net Operating Income 15,221 12,807 31,331 25,857
Office Nashville, TN [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 42,636 42,606 87,200 86,053
Total Net Operating Income 31,116 31,417 64,141 63,939
Office Orlando, FL [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 14,550 13,352 28,944 26,664
Total Net Operating Income 8,852 8,262 17,624 16,399
Office Raleigh, NC [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 45,701 45,535 91,579 91,831
Total Net Operating Income 33,670 34,020 67,276 68,735
Office Richmond, VA [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 9,048 10,432 18,357 20,965
Total Net Operating Income 6,353 7,363 12,923 14,588
Office Tampa, FL [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 24,953 23,556 50,344 47,579
Total Net Operating Income 15,636 14,615 32,040 30,561
Other [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 14,155 16,039 28,921 32,308
Total Net Operating Income $ 7,868 $ 9,721 $ 16,177 $ 19,401
v3.23.2
Subsequent Events (Details) - Highwoods Properties, Inc. [Member] - $ / shares
 3 Months Ended 6 Months Ended
Jul. 19, 2023
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Subsequent Event [Line Items]          
Dividends declared per share of Common Stock (in dollars per share)   $ 0.50 $ 0.50 $ 1.00 $ 1.00
Subsequent Event [Member]          
Subsequent Event [Line Items]          
Dividends declared per share of Common Stock (in dollars per share) $ 0.50