Highwoods Properties, Inc.

Overview

"How the company got here" "Highwoods Properties, Inc. was founded in 1978 and went public in 1994, establishing itself as a real estate investment trust (REIT). A REIT is a company that owns, operates, or finances income-generating real estate, allowing individuals to invest in large-scale properties like a mutual fund for real estate. Highwoods initially focused on properties in North Carolina but strategically expanded its portfolio over the years through acquisitions and development. A significant expansion occurred with the merger with Parkway Properties in 2016. The company has since refined its portfolio by selling off non-core assets and concentrating on high-quality office buildings in prime business districts within growing Sun Belt markets." "What it actually does" "Highwoods Properties is in the business of 'work-placemaking,' which means they own, develop, lease, and manage office buildings. Think of them as a landlord for businesses, providing the physical space where companies operate. Their main source of income comes from long-term leases with corporate tenants, professional services firms, and the regional headquarters of larger companies. They focus on high-quality, modern office spaces located in what they call 'Best Business Districts' (BBDs) – essentially, the most desirable and vibrant commercial areas in growing cities." "Office Properties" "Highwoods Properties operates primarily as an office REIT, meaning its main business is owning and managing office buildings. These aren't just any office buildings; the company focuses on Class A properties, which are typically newer, well-maintained, and located in prime business districts. Their revenue comes from leasing these spaces to businesses, who then use them as their offices. Highwoods aims to create environments that help companies attract and retain employees, making their buildings desirable workplaces."