Benzinga | Nov 9, 2021 11:11AM EST

Highwoods Properties Reports Will Develop GlenLake III In Raleigh

$94 Million Anticipated Total Investment

205,000 Square Feet of Office, 16% Pre-Leased

13,000 Square Feet of Amenity Retail

RALEIGH, N.C., Nov. 08, 2021 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) will begin construction of GlenLake III in Raleigh, a LEED and Fitwel-certified, multi-customer development that will encompass 218,000 square feet, including 205,000 square feet of office space and 13,000 square feet of retail and restaurant space.

The Company's projected investment is $94.4 million, including the value of existing Company-owned land. Construction is scheduled to begin in the fourth quarter of 2021, with targeted completion in the third quarter of 2023 and projected stabilization in the first quarter of 2026. Highwoods has pre-leased 16% of the office portion to McKim & Creed, a national engineering and surveying firm based in Raleigh, for its corporate headquarters. This mixed-use project is the latest example of Highwoods work-placemaking strategy.

Highwoods has developed five office buildings from 2001 through 2020 in GlenLake encompassing 732,000 square feet that are a combined 98% occupied. The most recent project, GlenLake VII, is a 125,000 square foot, 100% occupied office building that was placed in service in the first quarter of 2021, three quarters ahead of the original projected stabilization date.

Ted Klinck, President and CEO of Highwoods, stated "Our GlenLake development in Raleigh's Glenwood BBD is a well-established and highly-desirable infill location with significant demand for high-quality office space, as demonstrated by the 98% occupancy rate across our existing 732,000 square foot in-service portfolio. Our two most recent developments in GlenLake were both started with partial pre-leasing from anchor customers and are now 100% occupied.

We are excited McKim & Creed, a long-standing and thriving Raleigh company and new customer for Highwoods, has chosen GlenLake III for its corporate headquarters, and we look forward to building a long-lasting relationship with them. Our Raleigh team has done an excellent job with our GlenLake properties and this new lease illustrates the healthy demand we're seeing at GlenLake and across the Raleigh market."

John Lucey, PE, CEO and Board Chair of McKim and Creed, said "Working with the Highwoods team has made this an easy and seamless process for our firm. This new location will provide all of our employee-owners with a modern and collaborative working environment. It will offer us a pleasant workspace to enhance our enjoyable work culture, help us attract new talent and accommodate our surveying team's unique storage and access needs."