SUPPLEMENTAL INFORMATION · Three Months Ended 9/30/16 9/30/15 Financial: Revenues 1/ $ 166,269 $ 150,766 Net operating income (NOI) 1/ $ 107,649 $ 96,336 Same property cash NOI growth

SUPPLEMENTAL

INFORMATIONThird Quarter 2016

Page

Summary and Corporate Information ……………………………………………………………………………………………………………………………. i, ii, iii

Consolidated Statements of Income …………………………………………………………………………………………………………………………………………….1

Funds from Operations and Additional Information ………………………………………………………………………………………………………………..2

Consolidated Balance Sheets ………………………………………………………………………………………………………………………………………..3

Revenue Detail; Discontinued Operations Detail……………………………………………………………………………………………………………………………………..4

Capitalization ……………………………………………………………………………………………………………………………………………………………..5

Mortgages and Notes Payable Summary ……………………………………………………………………………………………………………………………….6

Mortgages and Notes Payable Detail ………………………………………………………………………………………………………………………………….7

Portfolio Summary ………………………………………………………………………………………………………………………………………………….8, 9, 10

Occupancy Trends …………………………………………………………………………………………………………………………………………………………11

Office Leasing Statistics...………………………………………………………………………………………………………………………………………….12

Office Leasing Statistics and Rental Rate Comparisons by Market ……………………………………………………………………………………………………………………………..13

Office Lease Expirations ……………………………………………………………………………………………………………..…………………………………….14

Office Lease Expirations by Market by Year …………………………………………………………………………………………………………………………15

Customer Diversification ……………………………………………………………………………………………………………………………………………16

Same Property Performance ……………………………………………………………………………………………………………………………………….17

Acquisition Activity …………………………………………………………………………………………………………………………………………………18

Disposition Activity …………………………………………………………………………………………………………………………………………………19

Development Activity ……………………………………………………………………………………………………………………………….……………….20

Land Held for Development …………………………………………………………………………………………………………………………………………21

Unconsolidated Joint Venture Financial Information…………………………………………………………………………………………………………………………22

Joint Ventures Summary and Dispositions Activity …………………………………………………………………………………………………………………………23

The information within refers to all Highwoods Properties' wholly-owned entities unless noted otherwise. Wholly-owned entities include properties

classified as both continuing operations and discontinued operations and exclude properties recorded on our Balance Sheet that relate to joint

ventures that are consolidated under GAAP.

All financial information contained in this document is unaudited. In addition, certain matters presented in this supplemental, including estimates

of net operating income, pre-leasing commitments and the cost, timing and stabilization of announced development projects, are forward-looking

statements within the meaning of the federal securities laws. Although Highwoods believes that the expectations reflected in such forward-looking

statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause

actual results to differ materially from Highwoods’ current expectations include, among others, general economic conditions, local real estate

conditions, the timely development and lease-up of properties, and other risks listed at the end of our third quarter earnings release and

detailed from time to time in the Company’s SEC reports. Highwoods assumes no obligation to update or supplement forward-looking statements

that become untrue due to subsequent events.

This supplemental also includes non-GAAP financial measures, such as funds from operations (FFO) and net operating income (NOI). Definitions

of FFO and NOI and an explanation of management's view of the usefulness and risks of FFO and NOI can be found toward the end of our third

quarter earnings release.

COVER

Charter Square

Raleigh, NC

Table of Contents

TOC

Three Months Ended

9/30/16 9/30/15

Financial:

Revenues 1/ 166,269$ 150,766$

Net operating income (NOI) 1/ 107,649$ 96,336$

Same property cash NOI growth 6.6% 6.3%

Funds from operations per share 0.82$ 0.77$

Weighted average common shares outstanding, diluted 101,939 97,661

Balance Sheet:

Leverage (includes preferred stock) based on gross book assets 34.6% 45.1%

Debt-to-EBITDA 4.82x 6.20x

Unencumbered NOI % 92.8% 85.6%

Credit facility availability 447,000$ 210,000$

Operations:

Quarter end occupancy 92.7% 92.6%

Office square feet leased 867 1,077

Office GAAP rent growth 2/ 20.7% 9.6%

Average office cash rental rate per square foot for in-place leases 24.22$ 23.36$

Nine Months Ended

9/30/16

Capital Activity:

Building acquisitions 83,500$

Building dispositions 694,778$

Development pipeline 518,690$

Pipeline pre-leased percent 71.4%

1/ Includes continuing operations only.

2/ GAAP rent growth is calculated by comparing average cash rent psf over the term (GAAP rent) of the new lease to the average cash rent psf over

the term related to the previous lease in the same space. Adjustments are made if and to the extent necessary to illustrate the current and prior

deal on a consistent gross lease basis.

Summary (amounts in thousands, except percentages, ratios, and per share amounts)

i

Board of Directors Division Officers

Chuck Anderson Jim Bacchetta

Gene Anderson Vice President, Atlanta

Carlos Evans Rick Dehnert

Ed Fritsch Vice President, Greensboro

David Hartzell, Ph.D. Steve Garrity

Sherry Kellett Vice President, Orlando

Temple Sloan, Jr., Chair Steve Guinn

Vice President, Memphis

Corporate Officers Skip Hill

Vice President, Raleigh

Dan Clemmens Walton Makepeace

Vice President, Chief Accounting Officer Vice President, Richmond

Hugh Esleeck Brian Reames

Vice President, Treasurer Senior Vice President, Nashville

Ed Fritsch Andy Wisniewski

President, Chief Executive Officer Vice President, Pittsburgh

Ted Klinck Dan Woodward

Executive Vice President, Chief Operating and Vice President, Tampa

Investment Officer

Carman Liuzzo

Vice President, Investments

Brendan Maiorana

Vice President, Finance and Investor Relations

Art McCann

Vice President, Chief Information Officer

Jeff Miller

Senior Vice President, General Counsel

Mark Mulhern

Senior Vice President, Chief Financial Officer

Randy Roberson

Vice President, Development

Mike Starchville

Vice President, Asset Management

Corporate Information

ii

Research Coverage Corporate Headquarters

Highwoods Properties, Inc.

Bank of America/Merrill Lynch Morgan Stanley 3100 Smoketree Court, Suite 600

Jamie Feldman Sumit Sharma Raleigh, NC 27604

646-855-5808 212-761-7567 919-872-4924

BTIG Oppenheimer & Co. Stock Exchange

Tom Catherwood Steve Manaker NYSE: HIW

212-738-6140 212-667-5950

Investor Relations

Capital One Securities RW Baird Brendan Maiorana

Tom Lesnick David Rodgers Vice President, Finance and Investor Relations

571-633-8191 216-737-7341 Phone: 919-431-1529

Ryan Wineman Fax: 919-431-1439

571-633-8414 Stifel Nicolaus [email protected]

John Guinee http://www.highwoods.com/

Citigroup Global Markets 443-224-1307

Michael Bilerman Erin Aslakson Information Request

212-816-1383 443-224-1350 To request a Supplemental Package or Annual Report

Emmanuel Korchman or to be added to our e-mail distribution list, please contact

212-816-1382 SunTrust Robinson Humphrey Investor Relations.

Michael Lewis

D.A. Davidson & Co. 212-319-5659

Barry Oxford The Company

212-240-9871 Highwoods Properties, headquartered in Raleigh, is a publicly

traded (NYSE:HIW) real estate investment trust (“REIT”) and

Green Street Advisors a member of the S&P MidCap 400 Index. The Company is a

Jed Reagan fully-integrated office REIT that owns, develops, acquires, leases and

949-640-8780 manages properties primarily in the best business districts (BBDs)

of Atlanta, Greensboro, Memphis, Nashville, Orlando, Pittsburgh,

Jefferies & Company, Inc. Raleigh, Richmond and Tampa. For more information about

Jonathan Petersen Highwoods Properties, please visit our website at:

212-284-1705 www.highwoods.com.

Corporate Information

iii

http://www.highwoods.com/

http://www.highwoods.com/

1/ 1/

9/30/16 9/30/15 9/30/16 6/30/16 3/31/16 12/31/15 9/30/15

Rental and other revenues 497,988$ 444,545$ 166,269$ 166,860$ 164,859$ 160,126$ 150,766$

Operating expenses:

Rental property and other expenses 173,715 159,314 58,620 57,515 57,580 56,627 54,430

Depreciation and amortization 161,734 145,758 52,923 55,317 53,494 56,160 50,963

General and administrative 29,327 28,898 9,863 8,327 11,137 8,744 8,990

Total operating expenses 364,776 333,970 121,406 121,159 122,211 121,531 114,383

Interest expense:

Contractual 56,111 61,783 17,722 18,674 19,715 20,462 20,484

Amortization of debt issuance costs 2,645 2,501 844 811 990 1,144 873

Financing obligation - 162 - - - - -

58,756 64,446 18,566 19,485 20,705 21,606 21,357

Other income:

Interest and other income 1,884 1,481 833 534 517 488 379

Losses on debt extinguishment - (220) - - - (23) -

1,884 1,261 833 534 517 465 379

Income from continuing operations before disposition of investment properties

and activity in unconsolidated affiliates 76,340 47,390 27,130 26,750 22,460 17,454 15,405

Gains on disposition of property 14,160 10,581 3,902 5,861 4,397 863 7,012

Gain on disposition of investment in unconsolidated affiliate - 4,155 - - - - 4,155

Equity in earnings of unconsolidated affiliates 5,010 4,367 2,808 917 1,285 711 780

Income from continuing operations 95,510 66,493 33,840 33,528 28,142 19,028 27,352

Discontinued operations:

Income from discontinued operations 4,097 12,850 - - 4,097 2,889 4,265

Net gains on disposition of discontinued operations 414,496 - - - 414,496 - -

418,593 12,850 - - 418,593 2,889 4,265

Net income 514,103 79,343 33,840 33,528 446,735 21,917 31,617

Net (income) attributable to noncontrolling interests in the Operating Partnership (14,876) (2,296) (926) (939) (13,011) (622) (918)

Net (income) attributable to noncontrolling interests in consolidated affiliates (941) (948) (319) (314) (308) (316) (324)

Dividends on Preferred Stock (1,877) (1,879) (624) (627) (626) (627) (626)

Net income available for common stockholders 496,409$ 74,220$ 31,971$ 31,648$ 432,790$ 20,352$ 29,749$

Earnings per Common Share – basic:

Income from continuing operations available for common stockholders 0.92$ 0.66$ 0.32$ 0.32$ 0.27$ 0.18$ 0.27$

Income from discontinued operations available for common stockholders 4.16 0.13 - - 4.22 0.03 0.04

Net income available for common stockholders 5.08$ 0.79$ 0.32$ 0.32$ 4.49$ 0.21$ 0.31$

Weighted average Common Shares outstanding - basic 97,669 93,996 98,973 97,648 96,373 95,617 94,693

Earnings per Common Share - diluted:

Income from continuing operations available for common stockholders 0.92$ 0.66$ 0.32$ 0.32$ 0.27$ 0.18$ 0.27$

Income from discontinued operations available for common stockholders 4.16 0.13 - - 4.22 0.03 0.04

Net income available for common stockholders 5.08$ 0.79$ 0.32$ 0.32$ 4.49$ 0.21$ 0.31$

Weighted average Common Shares outstanding - diluted 100,645 97,003 101,939 100,628 99,357 98,607 97,661

Dividends declared per Common Share 1.275$ 1.275$ 0.425$ 0.425$ 0.425$ 0.425$ 0.425$

Net income available for common stockholders:

Income from continuing operations available for common stockholders 90,081$ 61,759$ 31,971$ 31,648$ 26,462$ 17,549$ 25,612$

Income from discontinued operations available for common stockholders 406,328 12,461 - - 406,328 2,803 4,137

Net income available for common stockholders 496,409$ 74,220$ 31,971$ 31,648$ 432,790$ 20,352$ 29,749$

1/ Retrospectively revised from previously reported amounts to reclassify the operations for those properties classified as discontinued operations.

Nine Months Ended Three Months Ended

Consolidated Statements of Income (amounts in thousands, except per share amounts)

1


9/30/16 9/30/15 9/30/16 6/30/16 3/31/16 12/31/15 9/30/15

Funds from operations:

Net income 514,103$ 79,343$ 33,840$ 33,528$ 446,735$ 21,917$ 31,617$

Net (income) attributable to noncontrolling interests in consolidated affiliates (941) (948) (319) (314) (308) (316) (324)

Depreciation and amortization of real estate assets 159,780 143,973 52,303 54,680 52,797 55,476 50,342

(Gains) on disposition of depreciable properties (8,915) (9,147) - (5,861) (3,054) - (6,521)

(Gain) on disposition of investment in unconsolidated affiliate - (4,155) - - - - (4,155)

Unconsolidated affiliates:

Depreciation and amortization of real estate assets 2,227 2,412 736 749 742 791 835

(Gains) on disposition of depreciable properties (2,173) (946) (1,842) - (331) - -

Discontinued operations:

Depreciation and amortization of real estate assets - 10,277 - - - 3,543 3,636

(Gains) on disposition of depreciable properties (414,496) - - - (414,496) - -

Funds from operations 249,585 220,809 84,718 82,782 82,085 81,411 75,430

Dividends on Preferred Stock (1,877) (1,879) (624) (627) (626) (627) (626)

Funds from operations available for common stockholders 247,708$ 218,930$ 84,094$ 82,155$ 81,459$ 80,784$ 74,804$

Funds from operations available for common stockholders per share 2.46$ 2.26$ 0.82$ 0.82$ 0.82$ 0.82$ 0.77$

Weighted average shares outstanding 100,645 97,003 101,939 100,628 99,357 98,607 97,661

Additional information: 1/ 2/

Losses on debt extinguishment -$ 220$ -$ -$ -$ 23$ -$

Property acquisition costs 751 1,004 751 - - - 946

Straight-line rental income (18,518) (16,495) (5,140) (6,786) (6,592) (5,813) (5,688)

Straight-line rental write-offs related to termination fees 544 341 210 - 334 143 233

Amortization of lease incentives 1,374 1,162 273 390 711 372 378

Depreciation of non-real estate assets 1,576 1,619 495 514 567 622 561

Ground lease straight-line rent expense 297 310 105 95 97 97 101

Share-based compensation expense 5,412 5,996 862 994 3,556 888 929

Amortization of debt issuance costs 2,645 2,501 844 811 990 1,144 873

Amortization of accumulated other comprehensive income 238 237 80 79 79 80 80

Amortization of Harborview financing obligation - (541) - - - - -

Amortization of acquired above/(below) market leases (2,973) (948) (693) (1,678) (602) (499) (173)

Non-incremental revenue generating capital expenditures incurred: 3/

Building improvements (23,302) (16,422) (12,549) (7,173) (3,580) (11,837) (7,124)

2nd generation tenant improvements (37,585) (40,993) (14,078) (10,931) (12,576) (12,996) (13,295)

2nd generation lease commissions (16,463) (17,283) (7,028) (5,429) (4,006) (6,821) (6,313)

Common dividends and unit distributions paid (127,912) (123,450) (43,177) (42,622) (42,113) (41,846) (41,439)

1/ Includes those properties classified as discontinued operations.

2/ Increase or (decrease) to cash flows.

3/ Excludes capital expenditures (a) incurred within 12 months prior to the disposition date for buildings sold, (b) related to first generation leases and leases

with respect to vacant space in acquired buildings, (c) building improvements that are recoverable from future operating cost savings, (d) building improvements

that constitute part of the total investment cost disclosed in connection with an acquisition and (e) property re-developments.

Funds from Operations and Additional Information (amounts in thousands, except per share amounts)

2

9/30/16 12/31/15

Assets:

Real estate assets, at cost:

Land 474,375$ 443,705$

Buildings and tenant improvements 4,278,303 4,063,328

Development in-process 227,573 194,050

Land held for development 79,603 68,244

5,059,854 4,769,327

Less-accumulated depreciation (1,098,492) (1,007,104)

Net real estate assets 3,961,362 3,762,223

Real estate and other assets, net, held for sale 260 240,948

Cash and cash equivalents 6,387 5,036

Restricted cash 37,763 16,769

Accounts receivable, net of allowance of $791 and $928, respectively 26,756 29,077

Mortgages and notes receivable, net of allowance of $0 and $287, respectively 9,525 2,096

Accrued straight-line rents receivable, net of allowance of $703 and $257, respectively 167,503 150,392

Investments in and advances to unconsolidated affiliates 18,697 20,676

Deferred leasing costs, net of accumulated amortization of $136,292 and $115,172, respectively 218,976 231,765

Prepaid expenses and other assets, net of accumulated amortization of $20,008 and $17,830,

respectively 28,581 26,649

Total Assets 4,475,810$ 4,485,631$

Liabilities, Noncontrolling Interests in the Operating Partnership and Equity:

Mortgages and notes payable, net 1,901,066$ 2,491,813$

Accounts payable, accrued expenses and other liabilities 258,638 233,988

Liabilities held for sale - 14,119

Total Liabilities 2,159,704 2,739,920

Commitments and contingencies

Noncontrolling interests in the Operating Partnership 148,005 126,429

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), 28,920 and 29,050 shares issued and outstanding, respectively 28,920 29,050

Common Stock, $.01 par value, 200,000,000 authorized shares;

100,204,106 and 96,091,932 shares issued and outstanding, respectively 1,002 961

Additional paid-in capital 2,780,443 2,598,242

Distributions in excess of net income available for common stockholders (650,954) (1,023,135)

Accumulated other comprehensive loss (9,260) (3,811)

Total Stockholders' Equity 2,150,151 1,601,307

Noncontrolling interests in consolidated affiliates 17,950 17,975

Total Equity 2,168,101 1,619,282

Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity 4,475,810$ 4,485,631$

Consolidated Balance Sheets (dollars in thousands)

3


9/30/16 9/30/15 9/30/16 6/30/16 3/31/16 12/31/15 9/30/15

Continuing Operations Revenue Detail:

Rental and other revenues

Contractual rents, net 417,133$ 376,982$ 140,943$ 138,958$ 137,232$ 136,927$ 127,120$

Straight-line rental income, net 18,581 16,441 5,140 6,786 6,655 5,613 5,618

Amortization of lease incentives (1,374) (1,131) (273) (390) (711) (362) (368)

Cost recovery income, net 37,800 34,519 12,539 12,672 12,589 10,728 12,352

Lease termination fees 2,308 880 350 20 1,938 110 654

Fee income 2,700 2,751 853 896 951 966 807

Other miscellaneous operating revenues 20,840 14,103 6,717 7,918 6,205 6,144 4,583

497,988$ 444,545$ 166,269$ 166,860$ 164,859$ 160,126$ 150,766$

Discontinued Operations:

Rental and other revenues 8,484$ 37,637$ -$ -$ 8,484$ 13,298$ 12,970$

Operating expenses:

Rental property and other expenses 3,334 15,235 - - 3,334 5,570 5,328

Depreciation and amortization - 10,442 - - - 3,597 3,689

General and administrative 1,388 613 - - 1,388 1,753 192

Total operating expenses 4,722 26,290 - - 4,722 10,920 9,209

Interest expense 85 491 - - 85 130 155

Other income 420 1,994 - - 420 641 659

Income from discontinued operations 4,097 12,850 - - 4,097 2,889 4,265

Net gains on disposition of discontinued operations 414,496 - - - 414,496 - -

Total income from discontinued operations 418,593$ 12,850$ -$ -$ 418,593$ 2,889$ 4,265$

Revenue Detail; Discontinued Operations Detail (dollars in thousands)

4

9/30/16 6/30/16 3/31/16 12/31/15 9/30/15

Mortgages and Notes Payable (see pages 6 & 7): 1,901,066$ 2,082,207$ 2,100,937$ 2,491,813$ 2,470,076$

Financing Obligation: -$ -$ -$ 7,402$ 7,402$

Preferred Stock (at liquidation value):

Series A 8 5/8% Cumulative Redeemable 28,920$ 28,935$ 29,030$ 29,050$ 29,050$

Common Shares and Units Outstanding:

Common stock outstanding 100,204 98,571 97,392 96,092 95,330

Noncontrolling interest partnership units 2,840 2,867 2,900 2,900 2,910

Total Common Shares and Units outstanding 103,044 101,438 100,292 98,992 98,240

Stock price at period end 52.12$ 52.80$ 47.81$ 43.60$ 38.75$

Market value of common equity 5,370,653$ 5,355,926$ 4,794,961$ 4,316,051$ 3,806,800$

Total capitalization 7,300,639$ 7,467,068$ 6,924,928$ 6,844,316$ 6,313,328$

Capitalization

Capitalization (dollars, shares and units in thousands)

Debt26.0%

Preferred Equity0.4%

Common Equity73.6%

5

Balances Outstanding: 9/30/16 6/30/16 3/31/16 12/31/15 9/30/15

Secured:

Conventional fixed rate 129,013$ 130,001$ 174,475$ 175,281$ 288,623$

Unsecured - Fixed:

Fixed rate bonds and notes 1,125,942 1,125,739 1,125,536 1,125,333 1,125,130

Bank term loan 1/ 225,000 225,000 225,000 225,000 225,000

Unsecured - fixed total 1,350,942 1,350,739 1,350,536 1,350,333 1,350,130

Unsecured - Floating:

Bank term loan 200,000 200,000 200,000 200,000 200,000

Bank term loan 125,000 125,000 125,000 125,000 125,000

Bank term loan 2/ 75,000 - - - -

Bridge facility - - - 350,000 250,000

Credit facility 3/ 28,000 283,000 258,000 299,000 265,000

Unsecured - floating total 428,000 608,000 583,000 974,000 840,000

Unsecured total 1,778,942 1,958,739 1,933,536 2,324,333 2,190,130

Total 1,907,955$ 2,088,740$ 2,108,011$ 2,499,614$ 2,478,753$

Total Net of Debt Issuance Costs 1,901,066$ 2,082,207$ 2,100,937$ 2,491,813$ 2,470,076$

End of Period Weighted Average Interest Rates:

Secured:

Conventional fixed rate 4.35% 4.35% 5.14% 5.13% 5.83%

Unsecured - Fixed:

Fixed rate bonds 5.03% 5.03% 5.03% 5.03% 5.03%

Bank term loan 1/ 2.78% 2.78% 2.78% 2.78% 2.78%

Unsecured - fixed total 4.66% 4.66% 4.66% 4.66% 4.66%

Unsecured - Floating:

Bank term loan 1.72% 1.66% 1.64% 1.44% 1.40%

Bank term loan 1.62% 1.55% 1.54% 1.41% 1.31%

Bank term loan 1.62% - - - -

Bridge facility - - - 1.49% 1.29%

Credit facility 3/ 1.62% 1.55% 1.54% 1.45% 1.30%

Unsecured - floating total 1.67% 1.59% 1.57% 1.46% 1.32%

Unsecured total 3.94% 3.70% 3.73% 3.32% 3.38%

Weighted Average 3.97% 3.74% 3.84% 3.44% 3.66%

Maturity Schedule

1/ The interest rate on this loan is based on one-month LIBOR plus a spread based on the company's credit rating. Swap agreements effectively

fix one-month LIBOR until January 2019.

2/ Company may draw an additional $75 million by 12/1/16.

3/ Maturity date assumes exercise of two six-month extension options.

4/ All periods exclude annual principal amortization.

Mortgages and Notes Payable Summary (dollars in thousands)

-

100

200

300

400

500

600

2016 2017 2018 2019 2020 2021 2022 2023

To

tal

Deb

t (i

n m

illio

ns)

Secured Debt 4/ Unsecured Debt

Weighted Average Maturity = 3.0 years

$

6

Undepreciated

Secured Loans Loan Book Value of

Effective Maturity Balance Real Estate & Related

Lender Rate Date 9/30/16 Assets Secured

Wells Fargo Bank, N.A. 4.22% Nov-17 109,913$ 230,693$

Wells Fargo Bank, N.A. 5.36% Jul-17 19,100 22,300

4.35% 129,013 252,993$

Unsecured Bonds

Bonds 5.88% Mar-17 379,631

Bonds 3.36% Jun-21 297,964

Bonds 3.75% Jan-23 248,347

Bonds 7.50% Apr-18 200,000

5.03% 1,125,942

Unsecured Loans

Credit facility 1/ 2/ 1.62% Jan-19 28,000

Bank term loan 3/ 2.78% Jun-20 225,000

Bank term loan 1/ 1.72% Jan-19 200,000

Bank term loan 1/ 1.62% Jun-20 125,000

Bank term loan 1/ 4/ 1.62% Jan-22 75,000

2.05% 653,000

Total Debt 3.97% 1,907,955$

Total Net of Debt Issuance Costs 1,901,066$

Secured and Unsecured Debt Fixed and Variable Rate Debt

1/ Floating rate loans based on one-month LIBOR.

2/ Maturity date assumes exercise of two six-month extension options.

3/ This loan maturing June 2020 is swapped to an effective fixed rate of 2.78% until January 2019, including the current spread based on the

company's credit rating.

4/ Company may draw an additional $75 million by 12/1/16.

Mortgages and Notes Payable Detail (dollars in thousands)

Secured6.8%

Unsecured93.2%

Variable22.4%

Fixed77.6%

Bond Covenants as of September 30, 2016

Overall indebtedness (<60%) 36.8%

Secured indebtedness (<40%) 2.5%

Income available for debt service (>1.5x) 5.05x

Total unencumbered assets to unsecured debt (>200%) 277.3%

Agency Rating Outlook Affirmed

S&P BBB Stable 4/27/16

Moody's Baa2 Stable 11/3/15

7

9/30/16 6/30/16 3/31/16 12/31/15 9/30/15

Total In-Service

Rentable Square Feet

Office 27,080,000 26,836,000 26,922,000 27,282,000 27,280,000

Industrial 2,413,000 2,413,000 2,413,000 2,413,000 2,413,000

Retail 59,000 59,000 59,000 835,000 835,000

Total 29,552,000 29,308,000 29,394,000 30,530,000 30,528,000

Occupancy

Office 92.2% 92.0% 92.2% 92.6% 92.1%

Industrial 98.4% 98.4% 98.3% 97.3% 96.5%

Retail 93.0% 93.0% 96.4% 96.0% 96.0%

Total 92.7% 92.5% 92.7% 93.1% 92.6%

Same Property:

Rentable Square Feet

Office 24,310,000 24,310,000 24,310,000 24,310,000 24,310,000

Industrial 2,413,000 2,413,000 2,413,000 2,413,000 2,413,000

Retail 59,000 59,000 59,000 59,000 59,000

Total 26,782,000 26,782,000 26,782,000 26,782,000 26,782,000

Occupancy

Office 92.6% 92.2% 92.2% 92.5% 92.2%

Industrial 98.4% 98.4% 98.3% 97.3% 96.5%

Retail 93.0% 93.0% 96.4% 96.4% 96.4%

Total 93.2% 92.7% 92.8% 93.0% 92.6%

Rentable Square Feet and Occupancy Trend: Total In-Service Office Only

Portfolio Summary

85%

87%

89%

91%

93%

95%

20

21

22

23

24

25

26

27

28

9/30/15 12/31/15 3/31/16 6/30/16 9/30/16

Occu

pan

cy

Sq

uare

Feet

in M

illio

ns

Rentable Square Feet Occupancy

8

Rentable Percentage of Annualized Cash Revenue 1/

Market Square Feet Occupancy Office Industrial Retail Total

Atlanta 5,317,000 91.7% 19.4% - - 19.4%

Raleigh 5,096,000 90.8% 17.3% - - 17.3%

Nashville 3,379,000 99.5% 14.2% - 0.2% 14.4%

Tampa 3,822,000 90.8% 14.0% - - 14.0%

Pittsburgh 2,162,000 92.2% 8.5% - - 8.5%

Memphis 2,226,000 90.9% 7.7% - 0.1% 7.8%

Orlando 1,977,000 87.0% 7.3% - - 7.3%

Richmond 1,942,000 94.2% 5.7% - - 5.7%

Greensboro 3,564,000 96.5% 3.4% 2.0% - 5.4%

Kansas City 67,000 95.6% 0.2% - - 0.2%

Total 29,552,000 92.7% 97.7% 2.0% 0.3% 100.0%

Annualized Cash Revenue by Market 1/

1/ Annualized Cash Revenue is September 2016 cash rental revenue (base rent plus operating expense pass through revenue excluding

straight-line rental income) multiplied by 12.

Portfolio Summary

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Atlanta Raleigh Nashville Tampa Pittsburgh Memphis Orlando Richmond Greensboro Kansas City

9

Percentage Percentage

of Segment of Total

Annualized Annualized

Rentable Cash Cash

Market Square Feet Occupancy Revenue 1/ Revenue 1/

Office

Atlanta 5,317,000 91.7% 19.9% 19.4%

Raleigh 5,096,000 90.8% 17.7% 17.3%

Nashville 3,338,000 99.6% 14.5% 14.2%

Tampa 3,822,000 90.8% 14.3% 14.0%

Pittsburgh 2,162,000 92.2% 8.7% 8.5%

Memphis 2,208,000 90.8% 7.9% 7.7%

Orlando 1,977,000 87.0% 7.5% 7.3%

Richmond 1,942,000 94.2% 5.8% 5.7%

Greensboro 1,151,000 92.6% 3.5% 3.4%

Kansas City 67,000 95.6% 0.2% 0.2%

27,080,000 92.2% 100.0% 97.7%

Industrial

Greensboro 2,413,000 98.4% 100.0% 2.0%

2,413,000 98.4% 100.0% 2.0%

Retail

Nashville 41,000 89.9% 65.9% 0.2%

Memphis 18,000 100.0% 34.1% 0.1%

59,000 93.0% 100.0% 0.3%

Office Segment: Annualized Cash Revenue by Market 1/



Portfolio Summary

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Atlanta Raleigh Nashville Tampa Pittsburgh Memphis Orlando Richmond Greensboro Kansas City

10

Market Measurement 9/30/16 6/30/16 3/31/16 12/31/15 9/30/15

Atlanta Rentable Square Feet 5,317,000 5,317,000 5,317,000 5,361,000 5,361,000

Occupancy 91.7% 91.2% 92.1% 92.4% 91.3%

Current Properties 1/ 91.7% 91.2% 92.1% 92.6% 91.4%

Greensboro Rentable Square Feet 3,564,000 3,564,000 3,564,000 3,564,000 3,564,000

Occupancy 96.5% 96.7% 96.6% 95.8% 95.4%


Kansas City Rentable Square Feet 67,000 67,000 150,000 1,393,000 1,393,000

Occupancy 95.6% 95.6% 98.0% 97.2% 97.0%


Memphis Rentable Square Feet 2,226,000 2,226,000 2,226,000 2,226,000 2,226,000

Occupancy 90.9% 91.5% 90.7% 91.0% 89.9%


Nashville Rentable Square Feet 3,379,000 3,379,000 3,379,000 3,379,000 3,378,000

Occupancy 99.5% 99.0% 99.6% 99.2% 99.0%


Orlando Rentable Square Feet 1,977,000 1,977,000 1,978,000 1,978,000 1,978,000

Occupancy 87.0% 87.5% 85.9% 86.0% 84.9%


Pittsburgh Rentable Square Feet 2,162,000 2,162,000 2,162,000 2,157,000 2,157,000

Occupancy 92.2% 91.6% 91.4% 95.7% 96.0%


Raleigh Rentable Square Feet 5,096,000 4,852,000 4,852,000 4,882,000 4,882,000

Occupancy 90.8% 91.9% 93.0% 92.8% 91.6%


Richmond Rentable Square Feet 1,942,000 1,942,000 1,941,000 1,941,000 1,940,000

Occupancy 94.2% 92.9% 93.6% 93.9% 94.5%


Tampa Rentable Square Feet 3,822,000 3,822,000 3,825,000 3,649,000 3,649,000

Occupancy 90.8% 88.9% 88.3% 87.4% 88.2%


Total Rentable Square Feet 29,552,000 29,308,000 29,394,000 30,530,000 30,528,000

Occupancy 92.7% 92.5% 92.7% 93.1% 92.6%


1/ Only includes properties that were owned and in-service for all periods shown.

Occupancy Trends

11

Leasing Statistics

Three Months Ended Five Quarter

9/30/16 6/30/16 3/31/16 12/31/15 9/30/15 Average

Leasing Activity:

Square footage of Renewal Deals 594,326 661,722 694,258 809,940 843,755 720,800

Square footage of New Deals (Relets) 273,067 1/ 245,193 1/ 207,880 237,493 233,574 239,441

Rentable square footage leased 867,393 906,915 902,138 1,047,433 1,077,329 960,242

Renewed square footage (% of total) 68.5% 73.0% 77.0% 77.3% 78.3% 75.1%

New Leases square footage (% of total) 31.5% 27.0% 23.0% 22.7% 21.7% 24.9%

Number of lease transactions (signed leases) 99 131 119 121 118 118

Weighted average per rentable square foot

over the lease term:

Base rent 27.31$ 25.14$ 24.42$ 24.90$ 24.44$ 25.24$

Rent concessions (0.39) (0.57) (0.63) (0.62) (0.43) (0.53)

GAAP rent 26.92 24.57 23.79 24.28 24.01 24.71

Tenant improvements (2.86) (2.44) (2.05) (2.35) (1.87) (2.31)

Leasing commissions 2/ (0.84) (0.74) (0.53) (0.82) (0.66) (0.72)

Effective rent after capex 23.22 21.39 21.21 21.11 21.48 21.68

Expense stop (8.61) (8.42) (6.67) (7.99) (7.02) (7.74)

Effective rent after capex and opex 14.61$ 12.97$ 14.54$ 13.12$ 14.46$ 13.94$

Square feet weighted average term in years 7.0 5.4 6.5 6.9 4.9 6.1

Dollar weighted average term in years 7.2 5.6 6.5 6.9 4.9 6.2

Capital Expenditures Related to Above Leasing Activity:

Tenant Improvements:

Total dollars committed under signed leases 20,521,494$ 13,738,272$ 13,050,044$ 18,907,341$ 12,601,437$ 15,763,718$

Rentable square feet 867,393 906,915 902,138 1,047,433 1,077,329 960,242

Per rentable square foot 23.66$ 15.15$ 14.47$ 18.05$ 11.70$ 16.42$

Leasing Commissions:

Total dollars committed under signed leases 2/ 5,827,656$ 4,219,120$ 2,876,029$ 6,576,006$ 4,298,754$ 4,759,513$



Total:

Total dollars committed under signed leases 26,349,150$ 17,957,392$ 15,926,073$ 25,483,347$ 16,900,191$ 20,523,231$



1/ Expected occupancy as follows: 16,000 in Q3 '16; 151,000 in Q4 '16; 104,000 in Q1 '17; 2,000 in Q4 '17.

2/ Excludes internal leasing costs.

Office Leasing Statistics

12

For Three Months Ended September 30, 2016

Leasing Statistics Rentable Lease

Square Feet Average TI's Commissions Rental Previous Percentage

Leased Term Per SF Per SF 1/ Rate Rent Change

Atlanta 197,335 11.0 51.52$ 14.04$ 31.28$ 24.44$ 28.0%

Raleigh 185,329 7.1 20.18 5.61 25.06 21.23 18.0%

Tampa 129,865 5.8 15.87 6.02 25.82 23.05 12.0%

Memphis 88,751 4.9 8.70 1.36 24.60 20.23 21.6%

Orlando 85,028 4.9 10.08 4.07 27.20 23.29 16.8%

Nashville 81,266 3.7 8.60 2.52 28.69 23.40 22.6%

Richmond 48,035 6.1 18.38 1.53 22.81 19.40 17.6%

Pittsburgh 25,937 9.9 43.32 17.68 30.10 24.82 21.3%

Greensboro 24,531 3.5 8.95 1.24 18.33 15.85 15.6%

Kansas City 1,316 2.0 0.00 1.46 24.25 22.95 5.7%

GAAP Rent Growth 2/ 867,393 7.0 23.66$ 6.72$ 26.92$ 22.30$ 20.7%

Cash Rent Growth 3/ 867,393 7.0 23.66$ 6.72$ 25.56$ 24.80$ 3.1%

Average Office Cash Rental Rates for All In-Place Leases as of:

1/ Excludes capitalized internal leasing costs, which totaled $583,000.

2/ GAAP rent growth is calculated by comparing average cash rent psf over the term (GAAP rent) of the new lease to the average cash rent psf

over the term related to the previous lease in the same space. Adjustments are made if necessary to put both the current and prior deal on a

consistent gross lease basis.

3/ Cash rent growth is calculated by comparing beginning annualized cash rent psf (after rent concessions burn off) under the new lease to ending

annualized cash rent psf (including recovery income and rent escalations) related to the previous lease in the same space. Adjustments are

made if necessary to put both the current and prior deal on a consistent gross lease basis.

Office Leasing Statistics and Rental Rate Comparisons by Market

$20.72

$21.36

$22.08

$23.36

$24.22

$19

$20

$21

$22

$23

$24

$25

9/30/12 9/30/13 9/30/14 9/30/15 9/30/16

13

Occupied Percent of Percent of

Rentable Occupied Annualized Average Annualized

Square Feet Rentable Cash Rental Cash

Year Expiring Square Feet Revenue 1/ Rate Revenue 1/

2016 2/ 446,557 1.8% 10,797$ 24.18$ 1.8%

2017 2,313,459 9.3% 58,242 25.18 9.6%

2018 2,771,622 11.1% 66,895 24.14 11.1%

2019 3,528,065 14.1% 84,909 24.07 14.0%

2020 2,766,487 11.1% 75,536 27.30 12.5%

2021 2,743,753 11.0% 62,150 22.65 10.3%

2022 1,557,289 6.2% 35,332 22.69 5.8%

2023 1,561,158 6.3% 35,715 22.88 5.9%

2024 1,647,457 6.6% 42,086 25.55 7.0%

2025 885,883 3.5% 26,299 29.69 4.3%

2026 and thereafter 4,756,771 19.0% 107,104 22.52 17.7%

24,978,501 100.0% 605,065$ 24.22$ 100.0%

Percent of Total Annualized Cash Revenue Expiring by Year

1/ Annualized Cash Revenue is September 2016 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line

rental income) multiplied by 12.

2/ Includes 70,000 square feet of leases that are on a month to month basis, which constitute 0.3% of total annualized revenue.

Note: 2016 and beyond expirations that have been renewed are reflected above based on the renewal expiration date. Expirations include leases

related to completed not stabilized development properties and exclude leases related to developments in-process.

Office Lease Expirations (dollars in thousands)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2016 2/ 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 andthereafter

14

2016 1/ 2017 2018 2019 Thereafter

Atlanta RSF 95,568 472,968 291,159 666,745 3,347,719

% of Total RSF 0.4% 1.9% 1.2% 2.7% 13.4%

Annualized Cash Revenue 2/ 2,244$ 11,943$ 7,365$ 16,356$ 82,754$

% of Total Annl Cash Rev 0.4% 2.0% 1.2% 2.7% 13.7%

Greensboro RSF 26,005 197,083 196,287 112,315 533,784

% of Total RSF 0.1% 0.8% 0.8% 0.4% 2.1%

Annualized Cash Revenue 2/ 458$ 3,973$ 4,017$ 2,743$ 10,142$


Kansas City RSF 0 49,463 2,448 5,423 7,129

% of Total RSF 0.0% 0.2% 0.0% 0.0% 0.0%

Annualized Cash Revenue 2/ 1$ 1,114$ 62$ 129$ 174$


Memphis RSF 89,154 169,114 242,284 324,673 1,180,284

% of Total RSF 0.4% 0.7% 1.0% 1.3% 4.7%



Nashville RSF 22,956 358,621 406,501 488,164 2,049,350

% of Total RSF 0.1% 1.4% 1.6% 2.0% 8.2%



Orlando RSF 32,089 186,944 253,307 261,668 986,632

% of Total RSF 0.1% 0.7% 1.0% 1.0% 3.9%



Pittsburgh RSF 216 108,425 129,422 124,003 1,631,143

% of Total RSF 0.0% 0.4% 0.5% 0.5% 6.5%



Raleigh RSF 70,202 232,164 692,959 774,145 2,859,613

% of Total RSF 0.3% 0.9% 2.8% 3.1% 11.4%



Richmond RSF 28,259 306,709 216,438 204,924 1,074,044

% of Total RSF 0.1% 1.2% 0.9% 0.8% 4.3%



Tampa RSF 82,108 231,968 340,817 566,005 2,249,100

% of Total RSF 0.3% 0.9% 1.4% 2.3% 9.0%



Total RSF 446,557 2,313,459 2,771,622 3,528,065 15,918,798

% of Total RSF 1.8% 9.3% 11.1% 14.1% 63.7%



1/ Includes 70,000 square feet of leases that are on a month to month basis, which constitute 0.3% of total annualized revenue.



Office Lease Expirations by Market by Year (dollars in thousands)

15

Percent of Average

Rentable Annualized Annualized Remaining

Square Cash Cash Lease

Top 20 Customers Feet Revenue 1/ Revenue 1/ Term in Years

Federal Government 1,418,042 33,877$ 5.47% 4.6

Metropolitan Life Insurance 634,775 15,615 2.52% 10.8

PPG Industries 356,215 9,721 1.57% 14.6

HCA Corporation 297,909 8,064 1.30% 0.5

EQT Corporation 319,269 7,512 1.21% 8.0

Healthways 263,598 6,903 1.11% 6.4

International Paper 291,835 6,716 1.08% 11.4

Bass, Berry & Sims 195,846 6,356 1.03% 8.3

State of Georgia 318,506 6,222 1.00% 4.3

Willis Towers Watson 251,903 6,175 1.00% 6.0

Novelis 168,949 5,577 0.90% 7.9

Marsh USA 175,390 5,474 0.88% 5.5

Aon 190,683 5,402 0.87% 3.1

PNC Bank 187,076 5,274 0.85% 10.2

Syniverse Technologies 218,678 5,075 0.82% 10.1

Vanderbilt University 209,989 5,063 0.82% 4.0

AT&T 217,400 4,993 0.81% 2.8

Lifepoint Corporate Services 202,991 4,691 0.76% 12.5

Morgan Stanley 144,616 4,634 0.75% 3.1

SunTrust 141,735 4,280 0.69% 3.5

6,205,405 157,624$ 25.44% 6.9

Percent of Annualized Revenue by Industry



Customer Diversification (dollars in thousands)

Professional, Scientific, and Technical Services

25.0%

Finance/Banking14.3%

Health Care and Social Assistance

14.0%

Insurance8.1%

Manufacturing6.8%

Government/Public Administration

6.7%

Real Estate Rental and Leasing

5.3%

Administrative and Support Services

3.9%

Educational Services2.8%

Telecommunication2.7%

Information2.7%

Transportation and Warehousing

1.6%

Accommodation and Food Services

1.6%

Energy1.5%

Other Services (except Public Administration)

1.3%

Wholesale Trade1.0%

Retail Trade0.7%

16

Three months ended

September 30, Dollar Percentage

2016 2015 Change B/(W) Change B/(W)

Rental revenues 1/ 142,519$ 136,933$ 5,586$ 4.1%

Operating expenses (51,639) (51,683) 44 0.1%

Cash NOI 1/ 90,880 85,250 5,630 6.6%

Lease termination fees 2/ 350 653 (303) (46.4%)

Cash NOI with Term Fees 3/ 91,230 85,903 5,327 6.2%

Straight-line rent and other non-cash adjustments 2/ 4/ 2,016 4,660 (2,644) (56.7%)

GAAP NOI 93,246$ 90,563$ 2,683$ 3.0%

Average occupancy 93.0% 92.2% 0.9%

Rentable square feet 26,782,000 26,782,000

Nine months ended

September 30, Dollar Percentage

2016 2015 Change B/(W) Change B/(W)

Rental revenues 1/ 422,598$ 409,000$ 13,598$ 3.3%

Operating expenses (153,162) (152,530) (632) (0.4%)

Cash NOI 1/ 269,436 256,470 12,966 5.1%

Lease termination fees 2/ 2,308 880 1,428 162.3%

Cash NOI with Term Fees 3/ 271,744 257,350 14,394 5.6%

Straight-line rent and other non-cash adjustments 2/ 4/ 8,983 12,450 (3,467) (27.8%)

GAAP NOI 280,727$ 269,800$ 10,927$ 4.1%

Average occupancy 92.8% 92.0% 0.9%

Rentable square feet 26,782,000 26,782,000

Year to Date: 2016 vs 2015

GAAP NOI Occupancy

Percentage Percentage

Market Change Change

Atlanta 7.4% 2.2%

Greensboro 0.5% 0.7%

Kansas City (3.7%) (4.4%)

Memphis 1.0% (1.3%)

Nashville 4.9% 2.7%

Orlando 2.5% 1.6%

Pittsburgh (1.1%) (3.5%)

Raleigh 5.0% 1.1%

Richmond 7.7% 2.0%

Tampa 3.5% 1.0%

4.1% 0.9%

1/ Excludes straight-line rents, lease termination fees, adjustments related to amortization of acquired above and below market leases and

amortization of lease incentives.

2/ Straight-line rent write-offs related to lease terminations are reflected here as a reduction of lease termination fees.

3/ Excludes straight-line rents, adjustments related to amortization of acquired above and below market leases and amortization of lease incentives.

4/ Includes adjustments related to amortization of acquired above and below market leases and amortization of lease incentives.

Same Property Performance (dollars in thousands)

17

Nine Months

Ended Three Months Ended

9/30/16 9/30/16 6/30/16 3/31/16

Occupancy at Acquisition 65.0% 65.0% - -

Square feet 243,000 243,000 - -

Gross total investment $83,500 $83,500 - -

Charter Square

Market Raleigh

Submarket CBD

Property type Office

Date acquired September 27, 2016

Occupancy at Acquisition 65%

Square feet (1 building) 243,000

Gross total investment 1/ $83,500

1/ Includes $5.1 million of planned near-term capital improvements.

Acquisition Activity (dollars In thousands)

18

Nine Months

Ended

9/30/16

Occupancy 1/ 96.4%

Square feet 1,429,000

Gross sales price $685,192

Country Club Plaza

Market Kansas City

Property type Retail/Office/Land

Number of properties 18

Date sold March 1, 2016

Occupancy 1/ 2/ 96.9%

Square feet 2/ 1,272,000


4900 North Park

Market Raleigh




Occupancy 1/ 100.0%

Square feet 32,000


Highwoods Center III at Tradeport

Market Atlanta




Occupancy 1/ 73.3%

Square feet 43,000


Park Plaza

Market Kansas City



Date sold June 7, 2016

Occupancy 1/ 100.0%

Square feet 82,000


1/ As of last reported quarter-end occupancy prior to date of disposition.

2/ Plaza 211, a development in-process on the date of disposition, is included in the rentable square feet but excluded from occupancy calculation.

Disposition Activity (dollars In thousands)

19

Rentable Anticipated Investment Estimated Estimated

Square Total As Of Pre Completion Stabilization

Office In-Process Market Feet Investment 9/30/16 1/ Leased % Date Date

Riverwood 200 Atlanta 299,000 107,000$ 63,862$ 71.1% 2Q 17 2Q 19

Seven Springs II Nashville 131,000 38,100 18,080 52.3% 2Q 17 3Q 18

Bridgestone Americas 2/ Nashville 514,000 200,000 112,079 100.0% 3Q 17 3Q 17

CentreGreen III Raleigh 166,500 40,850 8,195 0.0% 3Q 17 3Q 19

Virignia Urology 3/ Richmond 87,000 29,140 1,255 100.0% 3Q18 3Q18

1,197,500 415,090$ 203,471$ 73.7%

Office Completed Not Stabilized 4/

GlenLake V Raleigh 166,000 37,000$ 36,644$ 93.7% 1Q 15 1Q 17

Seven Springs West Nashville 203,000 59,000 56,183 85.6% 3Q 16 1Q 17

369,000 96,000$ 92,827$ 89.3%

Industrial Completed Not Stabilized 4/

Enterprise V Greensboro 131,200 7,600$ 6,322$ 0.0% 2Q 16 2Q 17

Total Pipeline 1,697,700 518,690$ 302,620$ 71.4%

Virginia Urology in Richmond, VA

1/ Includes deferred lease commissions, which are not classified as development in-process on our consolidated balance sheet.

2/ Includes 8,000 square feet of amenity retail space, which is currently 0% pre-leased; office space is 100% pre-leased.

3/ Recorded on our consolidated balance sheet in land held for development, not development in-process.

4/ "Completed not stabilzed" properties are recorded on our consolidated balance sheet in the land and building and tenant improvement

accounts, not development in-process.

Development Activity (dollars in thousands)

20

Usable

Market Acres Office IndustrialNashville 2/ 82 1,468,000 - Raleigh 53 1,286,000 - Greensboro 37 240,000 356,000 Tampa 3/ 37 813,000 - Richmond 4/ 5/ 13 200,000 - Memphis 10 145,000 - Orlando 2 410,000 - Atlanta 6/ 1 75,000 -

Core total 235 4,637,000 356,000

Non-core total 213

Total 448

Cost Basis 1/ 2/ 3/ 4/ 5/ 6/ 113,359$

The 448 acres of Development Land has an estimated market value of between $125M to $130M.

1/ Represents approximately $1.1 billion in total development.

2/ Includes 68 acres and approximately 1.4M square feet currently classified as development in-process on our consolidated balance sheet.

3/ Includes 33 acres and approximately 460k square feet currently classified as development in-process on our consolidated balance sheet.

4/ Excludes 8 acres to be used to develop an 87k square foot, 100% pre-leased buid-to-suit medical office building that is currently classified

as land held for development on our consolidated balance sheet.

5/ Excludes 13 acres of development land owned by a 50% consolidated joint venture with a total cost basis of $3.3 million.

6/ Includes 8.8 acres that is currently classified as land held for sale as of September 30, 2016.

Square Footage Buildout of Core

Development Land 1/

Land Held for Development (dollars in thousands)

21

Joint Venture Own % Revenue NOI Revenue NOI

Highwoods DLF Forum, LLC 25.0% 3,605$ 2,444$ 10,992$ 7,425$

Plaza Colonnade, LLC 50.0% 3,218 2,129 9,469 6,328

Kessinger/Hunter & Company, LC 26.5% 1,601 539 4,697 1,511

Highwoods DLF 98/29, LLC 22.8% 1,360 785 4,060 2,423

Highwoods DLF 97/26 DLF 99/32, LP 42.9% 379 290 568 275

Total 10,163$ 6,187$ 29,786$ 17,962$

Total Total

Joint Venture Own % Assets Debt Liabilities

Highwoods DLF Forum, LLC 25.0% 93,713$ 71,244$ 73,864$

Plaza Colonnade, LLC 50.0% 60,032 51,537 53,490

Kessinger/Hunter & Company, LC 26.5% 3,738 - 272

Highwoods DLF 98/29, LLC 22.8% 27,683 - 2,181

Highwoods DLF 97/26 DLF 99/32, LP 42.9% 13,949 - 2,821

Total 199,115$ 122,781$ 132,628$

1/ Excludes joint ventures sold during the year.

Venture's Books

Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016

Venture's Books

As of September 30, 2016

Unconsolidated Joint Ventures Income Year Ended 12/31/14 (dollars in thousands)Unconsolidated Joint Ventures Income Six Months Ended Unconsolidated Joint Venture Financial Information 1/ (dollars in thousands)

22

Summary:

Percentage of

Annualized

Rentable Cash

Market Square Feet Occupancy Revenue 2/ 3/

Kansas City 292,000 99.5% 39.4%

Raleigh 635,000 94.0% 29.9%

Richmond 345,000 100.0% 21.2%

Orlando 306,000 100.0% 9.5%

Total 1,578,000 97.5% 100.0%

Dispositions Activity:

1/ Highwoods' in-service joint venture portfolio consists solely of office properties, including 345,000 square feet of properties in

Richmond owned by a joint venture that is consolidated.



3/ Annualized Cash Revenue is based on Highwoods' share only.

4/ Gross sales price includes Highwoods' share only.

Joint Ventures Summary and Dispositions Activity 1/ (dollars in thousands)

Date Square Gross Sales

Name Own % Market Sold Footage Occupancy Price 4/

First quarter 2016:

Concourse 50.0% Greensboro 3/3/16 118,000 36.8% 5,500$

Third quarter 2016:

Plaza West 12.5% Kansas City 7/18/16 262,000 91.4% 4,086$

2016 totals: 380,000 74.4% 9,586$

23

Documents

SUPPLEMENTAL INFORMATION · Three Months Ended 9/30/16 9/30/15 Financial: Revenues 1/ $ 166,269 $ 150,766 Net operating income (NOI) 1/ $ 107,649 $ 96,336 Same property cash NOI growth