Highwoods Properties, Inc. (HIW), a real estate investment trust (REIT), has recently renewed its lease agreement with MedSolutions – a premier medical management services provider for 54,000 square feet (sq ft) of space at Cool Springs II in Nashville. In addition, the company also signed a second lease agreement for 42,000 sq ft of space at the same property.
With the deal, Cool Springs office park that includes five buildings is 93.6% occupied. The lease renewal and subsequent lease expansion signifies the inherent quality of Highwood’sproperties. MedSolutions was reportedly evaluating multiple sites in various demographic areas for over a year to expand its footprint.
With the deal, Cool Springs office park that includes five buildings is 93.6% occupied. The lease renewal and subsequent lease expansion signifies the inherent quality of Highwood’sproperties. MedSolutions was reportedly evaluating multiple sites in various demographic areas for over a year to expand its footprint.
MedSolutions manages medical contracts for over 27 million individuals across the U.S. The company recently ventured into radiology management and presently serves a long list of medical specialties which includes oncology, cardiac imaging, sleep, ultrasound and emergency room imaging.
Based in Raleigh, North Carolina, Highwoods owns and operates its properties through its wholly owned subsidiary, Highwoods Realty Limited Partnerships. The company has interests in office, industrial, retail and service center properties, including development projects and apartment units. It also provides customer-related and fee-based real estate management services for its properties and third-party clients.
As of September 30, 2010, Highwoods had interests in 329 in-service office, industrial holdings and retail properties spanning 32.3 million square feet of gross leasable space. In addition, it also owns 581 acres of developable land.
Based in Raleigh, North Carolina, Highwoods owns and operates its properties through its wholly owned subsidiary, Highwoods Realty Limited Partnerships. The company has interests in office, industrial, retail and service center properties, including development projects and apartment units. It also provides customer-related and fee-based real estate management services for its properties and third-party clients.
As of September 30, 2010, Highwoods had interests in 329 in-service office, industrial holdings and retail properties spanning 32.3 million square feet of gross leasable space. In addition, it also owns 581 acres of developable land.
Currently, Highwoods is in the process of repositioning its portfolio to focus on stronger long-term markets and newer assets. A large part of the company’s portfolio is now concentrated in high-growth Sun Belt markets, such as Atlanta, Nashville and Tampa, which should exhibit above-average job growth due to long-term demographic trends.
We maintain our Neutral recommendation on Highwoods, which presently has a Zacks #2 Rank that translates into a short-term ‘Buy’ recommendation and indicates that the stock is expected to perform well above the overall U.S. equity market for the next 1-3 months.
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