Sumary of A well-diversified tenant base and efforts to expand in the high-growth markets are likely to aid Highwoods (HIW). However,…:
- This story originally appeared on Zacks Highwoods Properties, Inc.’s HIW portfolio is concentrated in high-growth Sun Belt markets with long-term favorable demographic trends.
- As part of its strategy to fortify its presence in the targeted markets, in July, HIW acquired four Class-A office assets, spanning 1.63 million square feet in Charlotte and Raleigh, from Preferred Apartment Communities.
- HIW is focused on development projects in the key markets that are likely to generate a considerable annual net operating income (NOI) upon completion and stabilization.
- Going forward, the next cycle of office-space demand will likely be driven by an inbound migration and significant investments announced by the office occupiers to expand their footprint in the Sun Belt regions.
- Also, additional hiring plans in HIW’s markets will drive the said demand.
- Moreover, HIW is seeing an increasing number of tenants returning to offices or announcing plans to report to work.
- This development too will likely support office real-estate fundamentals.
- HIW has adequate liquidity from cash in hand, cash flows from operating activities and other financing sources to meet its short-term liquidity needs.