Highwoods Realty Limited Partnership 8-K Third Quarter Financial and Operational Results

Exhibit 99.2

Supplemental Information

September 30, 2006

Supplemental Information

Table of Contents

September 30, 2006

Schedule	Page
Corporate Information	i, ii and iii
Consolidated Statements of Income	1
Statement of Funds from Operations and Additional Information	2
Consolidated Balance Sheets	3
Estimated Net Asset Value	4
Components of Discontinued Operations	5
Capitalization	6
Long-Term Debt Summary	7
Long-Term Debt Detail	8
Portfolio Summary	9, 10 and 11
Occupancy Trends	12
Leasing Statistics	13, 14 and 15
Leasing Statistics by Market	16
Rental Rate Comparisons by Market	17
Lease Expirations	18 and 19
Office Lease Expirations by Market by Quarter	20
Industrial Lease Expirations by Market by Quarter	21
Office Lease Expirations by Market by Year	22
Industrial Lease Expirations by Market by Year	23
Customer Diversification	24
Acquisition Activity	25
Disposition Activity	26
Development Activity	27
Development Land	28
Unconsolidated Joint Ventures Assets, Debt and Liabilities	29
Unconsolidated Joint Ventures Income (Three Months)	30
Unconsolidated Joint Ventures Income (Nine Months)	31
Joint Ventures Long-Term Debt Detail	32
Joint Ventures Portfolio Summary	33
Joint Ventures Lease Expirations	34
Joint Ventures Development	35

The information within refers to all Highwoods Properties’ wholly-owned entities, except pages 29 to 35, unless noted otherwise.

All financial information contained in this document is “unaudited.” In addition, certain matters discussed 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 general economic conditions, local real estate conditions, the timely development and lease-up of properties, and the other risks detailed from time to time in the Company’s SEC reports.

Highwoods Properties, Inc. 9/30/06

Summary Amounts in thousands, except per share amounts and ratios
	Three Months Ended
	09/30/06			06/30/06			03/31/06			12/31/05			09/30/05
Shares and Units:
Common shares outstanding at end of period		55,635			54,131			54,151			54,029			54,030
Common units outstanding at end of period		5,014			5,234			5,401			5,450			5,493
Weighted average common shares outstanding - basic		54,470			53,879			53,813			53,774			53,768
Weighted average common shares outstanding - diluted		61,457			60,387			60,588			60,125			60,486
Share price:
At end of period	$	37.21		$	36.18		$	33.73		$	28.45		$	29.51
High close during period		38.15			36.18			34.77			29.74			31.75
Low close during period		35.39			29.56			29.20			27.15			28.82
Financial information:
Land sale gains, net of (impairments)	$	2,103		$	(74	)	$	3,040		$	759		$	4,740
Lease termination income		249			1,304			885			485			709
Straight line rental income		2,006			1,664			2,521			1,639			1,689
Capitalized interest		1,701			930			601			740			843
Impairments on depreciable properties		2,600			—			—			7,677			4,415
Gain on sale of depreciable properties		3,712			1,395			3,164			7,805			16,146
Total debt/ total assets 2/		52.9	%		53.2	%		52.7	%		51.8	%		50.8	%
Total debt/ total market capitalization 2/		37.9	%		39.1	%		40.2	%		43.7	%		42.4	%
Funds from operations per share - diluted	$	0.53		$	0.54		$	0.59		$	0.43		$	0.48
Funds from operations per share - diluted,excluding certain items 1/	$	0.59		$	0.55		$	0.62		$	0.56		$	0.63
Wholly - owned property information:
In-Service rentable square feet:
Office		19,507			19,704			19,691			21,412			21,432
Industrial		6,605			6,706			6,706			6,977			6,977
Retail		1,431			1,408			1,408			1,416			1,417
Total		27,543			27,818			27,805			29,805			29,826
In-Service occupancy:
Office		88.1	%		87.1	%		87.1	%		87.5	%		85.0	%
Industrial		91.8	%		89.5	%		88.0	%		92.4	%		86.2	%
Retail		96.2	%		95.3	%		95.7	%		97.5	%		96.4	%
Total		89.4	%		88.1	%		87.7	%		89.1	%		85.8	%

1/ Excludes impairments on depreciable assets, losses on debt extinguisments, severance costs and preferred stock redemption charges

2/ Includes financing obligations

Highwoods Properties, Inc. i 9/30/06

Corporate Information

Board of Directors

Thomas W. Adler

Gene H. Anderson

Kay N. Callison

Edward J. Fritsch

Lawrence S. Kaplan

Sherry Kellett

L. Glenn Orr Jr.

O. Temple Sloan Jr., Chairman

F. William Vandiver, Jr.

Corporate Officers

Edward J. Fritsch

President, Chief Executive Officer and Director

Michael E. Harris

Executive Vice President and Chief Operating Officer

Terry L. Stevens

Vice President, Chief Financial Officer

S. Hugh Esleeck

Treasurer

Julie M. Kelly

Vice President, Compliance and Internal Audit

Carman J. Liuzzo

Vice President, Investments

Kevin E. Penn

Chief Information Officer and

Vice President, Strategy

Mack D. Pridgen III

Vice President, General Counsel and

Secretary

Tabitha N. Zane

Vice President, Investor Relations and

Corporate Communications

Research Coverage

Credit Suisse - North America

John Stewart - 212-538-3183

Deutsche Banc Securities

Lou Taylor - 212-469-4912

Green Street Advisors

Jim Sullivan - 949-640-8780

Morgan Stanley Dean Witter

David Cohen - 212-761-8564

Smith Barney Citigroup

Jonathan Litt - 212-816-0231

Stifel Nicolaus

John Guinee - 410-454-5520

Wachovia Securities

Chris Haley - 443-263-6773

Highwoods Properties, Inc. ii 9/30/06

Corporate Information

Divisional Officers

Atlanta/Piedmont Triad

Gene H. Anderson - Senior Vice President

Atlanta, GA

James V. Bacchetta, Vice President

Piedmont Triad, NC

Mark W. Shumaker, Vice President

Orlando/Tampa

Michael F. Beale - Senior Vice President

Orlando, FL

Michael F. Beale, Senior Vice President

Tampa, FL

Dan Woodward, Vice President

Raleigh

Raleigh, NC

Thomas “Skip” Hill, Vice President

Richmond

Richmond, VA

Paul W. Kreckman, Vice President

Nashville/Memphis/Columbia/Greenville

W. Brian Reames - Senior Vice President

Nashville, TN; Columbia, SC; and Greenville, SC

W. Brian Reames, Senior Vice President

Memphis, TN

Steven L. Guinn, Vice President

Kansas City

Kansas City, MO

Barrett Brady, Senior Vice President

Corporate Headquarters

Highwoods Properties, Inc.

3100 Smoketree Court, Suite 600

Raleigh, NC 27604

919-872-4924

Stock Exchange

NYSE Trading Symbol: HIW

Investor Relations Contact

Tabitha Zane

Vice President, Investor Relations and Corporate Communications

Phone: 919-431-1529

Fax: 919-431-1439

E-mail: tabitha.zane@highwoods.com

Information Request

To request a standard Investor Relations package, Annual Report

or to be added to our e-mail or fax list, please contact the

Corporate Communications/IR Specialist at:

Phone: 919-431-1521

Email: HIW-IR@highwoods.com

The Company

Highwoods Properties, Inc., a member of the S&P MidCap 400 Index, is a fully integrated, self-administered real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. As of September 30, 2006, the Company owned or had an interest in 414 in-service office, industrial and retail properties encompassing approximately 34.9 million square feet. Highwoods also owns 798 acres of development land. Highwoods is based in Raleigh, North Carolina, and its properties and development land are located in Florida, Georgia, Iowa, Kansas, Maryland, Missouri, North Carolina, South Carolina, Tennessee and Virginia. For more information about Highwoods Properties, please visit our Web site atwww.highwoods.com.

Highwoods Properties, Inc. iii 9/30/06

Consolidated Statements of Income

Amounts in thousands, except per share amounts

	Nine Months Ended						Three Months Ended
	09/30/06			09/30/05			09/30/06			06/30/06			03/31/06			12/31/05			09/30/05
Rental and other revenues	$	313,933		$	300,970		$	106,291		$	104,663		$	102,979		$	102,665		$	100,051
Operating expenses:
Rental property and other expenses		114,592			105,456			40,086			37,623			36,883			39,100			37,005
Depreciation and amortization		86,565			84,350			29,056			29,221			28,288			27,783			27,666
Impairment of assets held for use		2,600			7,587			2,600			—			—			—			4,415
General and administrative		26,298			23,859			8,546			9,060			8,692			9,204			7,513
Total operating expenses		230,055			221,252			80,288			75,904			73,863			76,087			76,599
Interest expense:
Contractual		71,855			74,032			23,809			24,236			23,810			24,645			24,239
Amortization of deferred financing costs		1,883			2,508			557			582			744			864			823
Financing obligations		3,190			4,118			850			1,398			942			914			1,073
		76,928			80,658			25,216			26,216			25,496			26,423			26,135
Other income/(expense):
Interest and other income		4,336			5,453			1,189			1,160			1,987			1,638			2,119
Loss on debt extinguishment		(467	)		(453	)		—			(467	)		—			—			(323	)
		3,869			5,000			1,189			693			1,987			1,638			1,796
Income/(loss) before disposition of property,minority interest and equity in earnings ofunconsolidated affiliates		10,819			4,060			1,976			3,236			5,607			1,793			(887	)
Gains on disposition of property		8,295			11,479			2,977			1,008			4,310			2,693			9,693
Minority interest		(1,272	)		398			(292	)		(399	)		(581	)		(122	)		63
Equity in earnings of unconsolidated affiliates		5,349			6,964			1,342			1,924			2,083			2,339			2,060
Income from continuing operations		23,191			22,901			6,003			5,769			11,419			6,703			10,929
Discontinued operations:
Income from discontinued operations, net of minority interest		1,499			7,693			311			219			969			1,935			1,800
Net gains and (impairments) on sales of discontinued operations, net of minority interest		4,638			24,865			2,595			285			1,758			(1,639	)		10,142
		6,137			32,558			2,906			504			2,727			296			11,942
Net income		29,328			55,459			8,909			6,273			14,146			6,999			22,871
Dividends on preferred stock		(12,950	)		(22,125	)		(4,113	)		(4,113	)		(4,724	)		(5,113	)		(6,699	)
Excess of preferred stock redemption cost over carrying value		(1,803	)		(4,272	)		—			—			(1,803	)		—			(4,272	)
Net income available for common stockholders	$	14,575		$	29,062		$	4,796		$	2,160		$	7,619		$	1,886		$	11,900
Net income per common share - diluted:
Income/(loss) from continuing operations	$	0.15		$	(0.07	)	$	0.04		$	0.03		$	0.09		$	0.03		$	—
Income from discontinued operations	$	0.11		$	0.61		$	0.05		$	0.01		$	0.05		$	—		$	0.22
Net income	$	0.26		$	0.54		$	0.09		$	0.04		$	0.14		$	0.03		$	0.22
Weighted average common shares outstanding - diluted		60,786			53,725			61,457			60,387			60,588			60,125			53,768
Dividends declared per common share	$	1.275		$	1.275		$	0.425		$	0.425		$	0.425		$	0.425		$	0.425

Highwoods Properties, Inc. Page 1 9/30/06

Statement of Funds from Operations

and Additional Information

Amounts in thousands, except per share amounts

	Nine Months Ended						Three Months Ended
	09/30/06			09/30/05			09/30/06			06/30/06			03/31/06			12/31/05			09/30/05
Funds from operations:
Net income	$	29,328		$	55,459		$	8,909		$	6,273		$	14,146		$	6,999		$	22,871
Dividends to preferred stockholders		(12,950	)		(22,125	)		(4,113	)		(4,113	)		(4,724	)		(5,113	)		(6,699	)
Excess of preferred stock redemption cost over carrying value		(1,803	)		(4,272	)		—			—			(1,803	)		—			(4,272	)
Net income applicable to common stockholders		14,575			29,062			4,796			2,160			7,619			1,886			11,900
Add/(Deduct):
Depreciation and amortization of real estate assets		84,226			82,323			28,295			28,479			27,452			27,176			27,020
(Gain) on disposition of depreciable real estate assets		(3,226	)		(5,758	)		(874	)		(1,082	)		(1,270	)		(1,934	)		(4,953	)
Minority interest from the Operating Partnership in income/(loss) from operations		826			(398	)		175			161			490			122			(63	)
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		8,143			8,047			2,790			2,678			2,675			2,942			2,779
Discontinued operations:
Depreciation and amortization of real estate assets		1,090			12,986			221			407			462			1,338			2,276
(Gain) on sale		(5,045	)		(28,257	)		(2,838	)		(313	)		(1,894	)		(5,871	)		(11,193	)
Minority interest from the Operating Partnership in income from discontinued operations		556			3,527			273			49			234			30			1,237
Funds from operations	$	101,145		$	101,532		$	32,838		$	32,539		$	35,768		$	25,689		$	29,003
Funds from operations per share - diluted
Net income applicable to common shares	$	0.26		$	0.54		$	0.09		$	0.04		$	0.14		$	0.03		$	0.22
Add/(Deduct):
Depreciation and amortization of real estate assets		1.39			1.36			0.46			0.47			0.45			0.45			0.44
Gains on disposition of depreciable real estate assets		(0.05	)		(0.10	)		(0.01	)		(0.02	)		(0.02	)		(0.03	)		(0.08	)
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		0.13			0.13			0.04			0.05			0.04			0.05			0.05
Discontinued operations:
Depreciation and amortization of real estate assets		0.02			0.22			—			0.01			0.01			0.02			0.04
Gain on sale		(0.09	)		(0.47	)		(0.05	)		(0.01	)		(0.03	)		(0.09	)		(0.19	)
Funds from operations	$	1.66		$	1.68		$	0.53		$	0.54		$	0.59		$	0.43		$	0.48
Weighted average shares outstanding - diluted		60,786			60,358			61,457			60,387			60,588			60,125			60,486
Additional information: 1/
Funds from operations, excluding certain items 2/	$	106,739		$	111,936		$	36,162		$	33,006		$	37,571		$	33,869		$	38,267
Straight line rental income	$	(6,191	)
Amortization of lease incentives		623
Depreciation of non-real estate assets		1,811
Amortization of stock-based compensation		2,933
Amortization of deferred financing costs		1,883
Non-incremental revenue generating capital expenditures paid:
Building improvements		(14,120	)
2nd generation tenant improvements		(26,599	)
2nd generation lease commissions		(14,234	)
Common dividends and unit distributions paid		(75,916	)

1/ Increase or (decrease) to cash flows

2/ Excludes impairments on depreciable assets, losses on debt extinguisments, severance costs and preferred stock redemption charges

Highwoods Properties, Inc. Page 2 9/30/06

Consolidated Balance Sheets

Dollars in thousands

	09/30/06			12/31/05
Assets:
Real estate assets, at cost:
Land	$	347,426		$	341,509
Buildings and tenant improvements		2,567,469			2,510,968
Development in process		80,943			19,434
Land held for development		118,036			134,844
Furniture, fixtures and equipment		23,706			22,467
		3,137,580			3,029,222
Less-accumulated depreciation		(606,633	)		(561,558	)
Net real estate assets		2,530,947			2,467,664
Real estate and other assets, net, held for sale		46,952			187,770
Cash and cash equivalents		7,524			1,212
Restricted cash		2,138			16,223
Accounts receivable, net		21,759			24,201
Notes receivable, net		8,125			9,232
Accrued straight-line rents receivable, net		67,081			60,729
Investment in unconsolidated affiliates		61,795			69,247
Deferred financing and leasing costs, net		65,085			59,374
Prepaid expenses and other		16,300			13,326
Total Assets	$	2,827,706		$	2,908,978
Liabilities, Minority Interest and Stockholders’ Equity:
Mortgages and notes payable	$	1,461,105		$	1,471,616
Accounts payable, accrued expenses and other liabilities		141,718			127,455
Financing obligations		36,098			34,154
Total Liabilities		1,638,921			1,633,225
Minority interest		84,252			94,134
Stockholders’ Equity:
Preferred stock		197,445			247,445
Common stock		556			540
Additional paid-in capital		1,442,759			1,419,683
Distributions in excess of net earnings		(534,546	)		(479,901	)
Accumulated other comprehensive loss		(1,681	)		(2,212	)
Deferred compensation		—			(3,936	)
Total Stockholders’ Equity		1,104,533			1,181,619
Total Liabilities, Minority Interest and Stockholders’ Equity	$	2,827,706		$	2,908,978

Highwoods Properties, Inc. Page 3 9/30/06

Estimated Net Asset Value

September 30, 2006

Dollars in thousands, except per share amounts

The information on this Page is provided to assist in the calculation of Net Asset Value using a range of Capitalization rates and In- Place Net Operating Income among other Factors. It is not intended to be an asset by asset valuation.

NOI Cap Rates:
Office		7.25	%		7.50	%		7.75	%
Retail		5.75	%		6.00	%		6.25	%
Industrial/Other		7.50	%		7.75	%		8.00	%
Weighted average		7.08	%		7.33	%		7.58	%
Consolidated Properties YTD Net Operating Income 1/
Office	$	156,389		$	156,389		$	156,389
Retail		19,875			19,875			19,875
Industrial/Other		16,267			16,267			16,267
Total Net Operating Income	$	192,531		$	192,531		$	192,531
Consolidated Properties YTD Net Operating Income Annualized
Office	$	208,519		$	208,519		$	208,519
Retail		26,500			26,500			26,500
Industrial/Other		21,689			21,689			21,689
Total Net Operating Income	$	256,708		$	256,708		$	256,708
Consolidated Properties Capitalized Value
Office	$	2,876,120		$	2,780,249		$	2,690,563
Retail		460,870			441,667			424,000
Industrial/Other		289,191			279,862			271,117
Total Capitalized Value - wholly owned properties	$	3,626,180		$	3,501,778		$	3,385,680
Highwoods’ Share of Joint Ventures
Net Operating Income YTD	$	24,001		$	24,001		$	24,001
Net Operating Income Annualized	$	32,001		$	32,001		$	32,001
Capitalization Rates		7.25	%		7.50	%		7.75	%
Capitalized Value - joint venture interests	$	441,398		$	426,684		$	412,920
Total In-Service Property Value	$	4,067,578		$	3,928,462		$	3,798,601
Value of Other income
Annualized Development, Leasing and Management Fees	$	5,435		$	5,435		$	5,435
Capitalization Rate		20	%		20	%		20	%
Value of Other income	$	27,173		$	27,173		$	27,173
Add Other assets:
Development pipeline investment at 125% of Cost	$	146,567		$	146,567		$	146,567
Low occupancy assets at NBV 2/		61,535			61,535			61,535
Property held for sale at net sales price		75,454			75,454			75,454
Land held for development at market value		150,346			150,346			150,346
Cash and cash equivalents		7,524			7,524			7,524
Restricted cash		2,138			2,138			2,138
Accounts receivable, net		21,759			21,759			21,759
Notes receivable and prepaid expenses		24,425			24,425			24,425
Other assets total	$	489,748		$	489,748		$	489,748
Gross Value of Assets	$	4,584,499		$	4,445,384		$	4,315,522
Deductions:
Total liabilities	$	141,718		$	141,718		$	141,718
Mortgages and notes payable, at estimated fair value		1,515,882			1,515,882			1,515,882
Preferred stock, at redemption value		197,445			197,445			197,445
Partner’s Interest in Markel, Vinings and Harborview 3/		47,794			44,944			42,278
Highwoods’ share of joint ventures liabilities		255,107			255,107			255,107
Estimated Net Asset Value	$	2,426,553		$	2,290,288		$	2,163,093
Total diluted common shares and operating units		61,457			61,457			61,457
Estimated Net Asset Value Per Share	$	39.48		$	37.27		$	35.20

1/ NOI excludes straight line income, lease termination fee income, and NOI related to completed not stablilized developments.

2/ Consolidated Properties NOI is adjusted to eliminate the net NOI for certain low occupancy properties for which a NOI capitalization approach is not appropriate. For those low occupancy assets, their net book value (after depreciation) is added as an estimate of their current valuation.

3/ This adjustment is to eliminate the partners’ proportionate share of the estimated net equity after debt related to these consolidated joint ventures.

Highwoods Properties, Inc. Page 4 9/30/06

Components of Discontinued Operations

Dollars in thousands

	Nine Months Ended						Three Months Ended
	09/30/06			09/30/05			09/30/06			06/30/06			03/31/06			12/31/05			09/30/05
Rental and other revenues	$	5,227		$	40,375		$	1,558		$	1,187		$	2,482		$	6,678		$	8,717
Operating expenses:
Rental property and other expenses		1,950			17,078			647			445			858			3,099			3,962
Depreciation and amortization		1,090			12,986			221			407			462			1,338			2,276
General and administrative		75			849			75			—			—			10			298
Total operating expenses		3,115			30,913			943			852			1,320			4,447			6,536
Interest expense		482			1,072			277			102			103			146			251
Other income		18			135			3			7			8			47			56
Income before minority interest in the OperatingPartnership and net gains on sale and (impairment) ofdiscontinued operations		1,648			8,525			341			240			1,067			2,132			1,986
Minority interest in discontinued operations		(149	)		(832	)		(30	)		(21	)		(98	)		(197	)		(186	)
Income from discontinued operations, net of minorityinterest in the Operating Partnership		1,499			7,693			311			219			969			1,935			1,800
Net gains on sale and (impairment) of discontinued operations		5,045			27,560			2,838			313			1,894			(1,806	)		11,193
Minority interest in discontinued operations		(407	)		(2,695	)		(243	)		(28	)		(136	)		167			(1,051	)
Net gains on sale and (impairment) of discontinuedoperations, net of minority interest in the OperatingPartnership		4,638			24,865			2,595			285			1,758			(1,639	)		10,142
Total discontinued operations	$	6,137		$	32,558		$	2,906		$	504		$	2,727		$	296		$	11,942

Highwoods Properties, Inc. Page 5 9/30/06

Capitalization

Dollars, shares, and units in thousands

	09/30/06		06/30/06		03/31/06		12/31/05		09/30/05
Long-Term Debt (see pages 7 & 8):	$	1,461,105	$	1,466,839	$	1,450,251	$	1,471,616	$	1,441,081
Financing Obligations:	$	36,098	$	36,002	$	34,282	$	34,154	$	34,952
Preferred Stock (at redemption value):
Series A 8 5/8% Perpetual Preferred Stock	$	104,945	$	104,945	$	104,945	$	104,945	$	104,945
Series B 8% Perpetual Preferred Stock		92,500		92,500		92,500		142,500		142,500
Total preferred stock	$	197,445	$	197,445	$	197,445	$	247,445	$	247,445
Common Shares and Units Outstanding:
Common stock outstanding		55,635		54,131		54,142		54,029		54,030
Minority interest partnership units		5,014		5,234		5,401		5,450		5,493
Total common shares and units outstanding		60,649		59,365		59,543		59,479		59,523
Stock price at period end	$	37.21	$	36.18	$	33.73	$	28.45	$	29.51
Market value of common equity	$	2,256,749	$	2,147,826	$	2,008,385	$	1,692,178	$	1,756,524
Total market capitalization with debt and obligations	$	3,951,397	$	3,848,112	$	3,690,363	$	3,445,393	$	3,480,002

See pages 29 to 35 for information regarding Highwoods’ Joint Ventures

Highwoods Properties, Inc. Page 6 9/30/06

Long-Term Debt Summary

Dollars in thousands

	09/30/06			06/30/06			03/31/06			12/31/05			09/30/05
Balances Outstanding:
Secured:
Conventional fixed rate 1/	$	691,662		$	695,832		$	699,951		$	667,137		$	676,855
Variable rate debt 2/		12,943			13,007			12,302			53,978			46,226
Secured total		704,605			708,839			712,253			721,115			723,081
Unsecured:
Fixed rate bonds and notes		460,000			460,000			460,000			460,000			460,000
Variable rate debt		—			—			100,000			100,000			100,000
Credit facility		296,500			298,000			178,000			190,500			158,000
Unsecured total		756,500			758,000			738,000			750,500			718,000
Total	$	1,461,105		$	1,466,839		$	1,450,253		$	1,471,615		$	1,441,081
Average Interest Rates:
Secured:
Conventional fixed rate		6.9	%		6.9	%		6.9	%		7.0	%		7.0	%
Variable rate debt		5.9	%		5.8	%		5.4	%		5.5	%		5.0	%
Secured total		6.9	%		6.9	%		6.9	%		6.9	%		6.9	%
Unsecured:
Fixed rate bonds		7.4	%		7.4	%		7.4	%		7.4	%		7.4	%
Variable rate debt		—			—			5.8	%		5.4	%		5.4	%
Credit facility		6.2	%		6.0	%		5.8	%		5.4	%		4.9	%
Unsecured total		6.9	%		6.8	%		6.8	%		6.6	%		6.5	%
Average		6.9	%		6.9	%		6.8	%		6.7	%		6.7	%

Maturity Schedule:

	Future Maturities of Debt				Total Debt 3/		Average Interest Rate
Year	Secured Debt 3/		Unsecured Debt
2006	$	—	$	110,000	$	110,000	7.0	%
2007		79,963		—		79,963	7.9	%
2008		—		100,000		100,000	7.1	%
2009 4/		151,545		346,500		498,045	6.9	%
2010		133,039		—		133,039	7.8	%
2011		—		—		—	—
2012		22,800		—		22,800	6.1	%
2013		273,971		—		273,971	5.9	%
2014		38,291		—		38,291	5.8	%
2015		—		—		—	—
Thereafter		4,996		200,000		204,996	7.5	%
Total maturities	$	704,605	$	756,500	$	1,461,105	6.9	%

Weighted average maturity = 4.75 years

1/ Includes a $22.8 million loan related to a consolidated 20% owned joint venture (Harborview) and $38.3 million in loans at September 30, 2006 related to a consolidated 50% joint venture (Markel)

2/ Includes a $9.7 million construction loan at September 30, 2006 related to a consolidated 50% owned joint venture (Vinings).

3/ All periods exclude annual principal amortization.

4/ The $346.5 million of unsecured debt maturities includes $296.5 million related to the credit facility which matures in 2009 (excludes one-year extension option).

Highwoods Properties, Inc. Page 7 9/30/06

Long-Term Debt Detail

Dollars in thousands

Secured Loans

Lender	Rate		Maturity Date	Loan Balance 09/30/06		Undepreciated Book Value of Assets Secured
Monumental Life Ins. Co.	7.8	%	Nov-09	$	145,634	$	201,381
Northwestern Mutual	6.0	%	Mar-13		138,349		171,126
Northwestern Mutual	7.8	%	Nov-10		133,039		288,911
Massachusetts Mutual Life Ins. Co. 1/	5.7	%	Dec-13		123,826		194,310
Northwestern Mutual	8.2	%	Feb-07		61,938		139,338
Metropolitan Life Ins. Co. 2/	6.1	%	Oct-12		22,800		40,076
Principal Life Insurance Company 3/	5.8	%	Jan-14		11,738		15,155
Principal Life Insurance Company 3/	5.8	%	Jan-14		11,738		18,957
Massachusetts Mutual Life Ins. Co. 1/	6.5	%	Dec-13		10,897		14,674
Central Carolina Bank 4/ 5/	5.3	%	Dec-07		9,660		11,262
Principal Life Insurance Company 3/	5.7	%	Jan-14		9,258		15,996
Principal Life Insurance Company 3/	5.9	%	Jan-14		5,556		7,514
PFL Life Ins. Co. 6/	8.1	%	Jun-07		5,082		23,572
Ohio National 7/	8.0	%	Nov-17		4,996		11,219
Lutheran Brotherhood	6.8	%	Apr-09		3,835		7,938
PFL Life Ins. Co. 6/ 8/	7.5	%	Jun-07		3,283		—
Security Life of Denver	8.9	%	Aug-09		2,077		9,517
American United Life	9.0	%	Jun-13		899		3,381
	6.9	%			704,605	$	1,174,327
Unsecured Bonds
Bonds	7.0	%	Dec-06		110,000
Bonds	7.1	%	Feb-08		100,000
Bonds	8.1	%	Jan-09		50,000
Bonds	7.5	%	Apr-18		200,000
	7.4	%			460,000
Unsecured Loans
Credit facility 5/	6.0	%	May-09		296,500
Total Debt	6.9	%		$	1,461,105

1/ These two loans are secured by the same assets.

2/ Loan relates to a consolidated 20% owned joint venture (Harborview).

3/ Loans relate to a consolidated 50% owned joint venture (Markel).

4/ Loan relates to a consolidated 50% owned joint venture (Vinings).

5/ Floating rate loan based on one month libor. Maturity date excludes one-year extension option.

6/ These two loans are secured by the same assets.

7/ Related property sold October 26, 2006

8/ Floating rate loan based on ninety day libor.

Highwoods Properties, Inc. Page 8 9/30/06

Portfolio Summary - Wholly-Owned Properties Only 1/

(Rentable Square Feet)

	09/30/06		06/30/06		03/31/06		12/31/05		09/30/05
Office Industrial & Retail
In-Service:
Office 2/	19,507,000		19,704,000		19,691,000		21,412,000		21,432,000
Industrial	6,605,000		6,706,000		6,706,000		6,977,000		6,977,000
Retail 3/	1,431,000		1,408,000		1,408,000		1,416,000		1,417,000
Total	27,543,000		27,818,000		27,805,000		29,805,000		29,826,000
Development Completed - Not Stabilized:
Office 2/	311,000		153,000		—		—		—
Industrial	—		—		—		—		—
Retail	—		—		9,600		9,600		9,600
Total	311,000		153,000		9,600		9,600		9,600
Development - In Process:
Office 2/	1,405,000		1,268,000		1,026,000		533,000		780,000
Industrial	681,000		418,000		418,000		—		—
Retail	—		23,000		23,000		—		—
Total	2,086,000		1,709,000		1,467,000		533,000		780,000
Total:
Office 2/	21,223,000		21,125,000		20,717,000		21,945,000		22,212,000
Industrial	7,286,000		7,124,000		7,124,000		6,977,000		6,977,000
Retail 3/	1,431,000		1,431,000		1,440,600		1,425,600		1,426,600
Total	29,940,000		29,680,000		29,281,600		30,347,600		30,615,600
Same Property
Office 2/	19,130,000		19,130,000		19,130,000		19,130,000		19,130,000
Industrial	6,251,000		6,251,000		6,251,000		6,251,000		6,251,000
Retail	1,408,000		1,408,000		1,408,000		1,408,000		1,408,000
Total	26,789,000		26,789,000		26,789,000		26,789,000		26,789,000
Percent Leased/Pre-Leased:
In-Service:
Office	88.1	%	87.1	%	87.1	%	87.5	%	85.0	%
Industrial	91.8	%	89.5	%	88.0	%	92.4	%	86.2	%
Retail	96.2	%	95.3	%	95.7	%	97.5	%	96.4	%
Total	89.4	%	88.1	%	87.7	%	89.1	%	85.8	%
Development Completed - Not Stabilized:
Office	52.3	%	17.0	%	—		—		—
Industrial	—		—		—		—		—
Retail	—		—		88.0	%	87.0	%	87.0	%
Total	52.3	%	17.0	%	88.0	%	87.0	%	87.0	%
Development - In Process:
Office	58.4	%	53.7	%	57.1	%	37.2	%	57.1	%
Industrial	27.0	%	44.0	%	43.8	%	—		—
Retail	—		100.0	%	100.0	%	—		—
Total	48.2	%	51.9	%	54.0	%	37.2	%	57.1	%
Same Property
Office	87.8	%	86.8	%	86.7	%	88.2	%	86.6	%
Industrial	91.3	%	89.4	%	87.7	%	93.2	%	87.2	%
Retail	96.2	%	95.3	%	95.7	%	98.1	%	97.0	%
Total	89.1	%	87.8	%	87.4	%	89.9	%	87.3	%

1/ Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP

2/ Substantially all of our Office properties are located in suburban markets.

3/ Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City retail properties

Highwoods Properties, Inc. Page 9 9/30/06

Portfolio Summary

(Continued)

As of September 30, 2006

Summary by Location, Wholly-Owned Properties Only 1/:

	Rentable Square Feet		Occupancy		Percentage of Annualized Revenue 2/
Market					Office		Industrial		Retail		Total
Raleigh /3	3,812,000		82.6	%	14.6	%	—		—		14.6	%
Atlanta	5,584,000		92.4	%	10.6	%	4.0	%	—		14.6	%
Kansas City	2,329,000	4/	90.7	%	4.4	%	—		10.0	%	14.4	%
Nashville	2,875,000		92.8	%	13.2	%	—		—		13.2	%
Tampa	2,524,000		96.0	%	12.8	%	—		—		12.8	%
Piedmont Triad /5	5,589,000		89.9	%	7.2	%	3.9	%	—		11.1	%
Richmond	1,954,000		88.6	%	8.3	%	—		—		8.3	%
Memphis	1,197,000		91.9	%	5.5	%	—		—		5.5	%
Greenville	1,109,000		75.0	%	3.2	%	0.1	%	—		3.3	%
Orlando	218,000		100.0	%	1.2	%	—		—		1.2	%
Columbia	252,000		49.4	%	0.5	%	—		—		0.5	%
Other	100,000		75.1	%	0.5	%	—		—		0.5	%
Total	27,543,000		89.4	%	82.0	%	8.0	%	10.0	%	100.0	%

Summary by Location, Including Joint Venture Properties:

	Rentable Square Feet		Occupancy		Percentage of Annualized Revenue 2/ 6/
Market					Office		Industrial		Retail		Multi-Family		Total
Atlanta	6,419,000		92.7	%	10.9	%	3.5	%	—		—		14.4	%
Kansas City	3,050,000	4/	88.6	%	4.9	%	—		8.8	%	—		13.7	%
Raleigh	4,267,000		84.4	%	13.3	%	—		—		—		13.3	%
Nashville	2,875,000		92.8	%	11.6	%	—		—		—		11.6	%
Tampa	2,729,000		96.4	%	11.5	%	—		—		—		11.5	%
Piedmont Triad	5,953,000		90.5	%	6.8	%	3.4	%	—		—		10.2	%
Richmond	2,367,000		90.5	%	7.9	%	—		—		—		7.9	%
Memphis	1,197,000		91.9	%	4.9	%	—		—		—		4.9	%
Orlando	1,903,000		95.0	%	4.3	%	—		—		—		4.3	%
Des Moines	2,399,000		93.9	%	3.3	%	0.5	%	0.1	%	0.4	%	4.3	%
Greenville	1,109,000		75.0	%	2.8	%	0.1	%	—		—		2.9	%
Other	210,000		88.1	%	0.5	%	—		—		—		0.5	%
Columbia	252,000		49.4	%	0.4	%	—		—		—		0.4	%
Charlotte	148,000		100.0	%	0.1	%	—		—		—		0.1	%
Total	34,878,000		90.4	%	83.2	%	7.5	%	8.9	%	0.4	%	100.0	%

1/ Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP

2/ Annualized Revenue is September, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12.

3/ Raleigh Market encompasses Raleigh, Durham, Cary, and Research Triangle metropolitan area.

4/ Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City retail properties

5/ Piedmont Triad Market encompasses Greensboro, Winston-Salem metropolitan area.

6/ Includes Highwoods’ share of Joint Venture Annualized Rental Revenue, see page 33

Highwoods Properties, Inc. Page 10 9/30/06

Portfolio Summary - Wholly-Owned Properties Only

(Continued)

As of September 30, 2006

	Office Properties 1/					Industrial
Market	Rentable Square Feet	Occupancy		Percentage of Office Annualized Revenue 2/		Rentable Square Feet	Occupancy		Percentage of Industrial Annualized Revenue 2/
Raleigh	3,812,000	82.6	%	18.0	%	—	—		—
Nashville	2,875,000	92.8	%	16.1	%	—	—		—
Tampa	2,524,000	96.0	%	15.6	%	—	—		—
Atlanta	2,529,000	86.3	%	12.9	%	3,055,000	97.4	%	50.5	%
Richmond	1,954,000	88.6	%	10.2	%	—	—		—
Piedmont Triad	2,146,000	91.7	%	8.7	%	3,443,000	88.8	%	48.4	%
Memphis	1,197,000	91.9	%	6.7	%	—	—		—
Kansas City	894,000	82.0	%	5.3	%	4,000	46.5	%	0.1	%
Greenville	1,006,000	80.1	%	3.8	%	103,000	25.4	%	1.0	%
Orlando	218,000	100.0	%	1.5	%	—	—		—
Columbia	252,000	49.4	%	0.6	%	—	—		—
Other	100,000	75.1	%	0.6	%	—	—		—
	19,507,000	88.1	%	100.0	%	6,605,000	91.8	%	100.0	%

	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Revenue 2/
Kansas City 3/	1,431,000	96.2	%	100.0	%
	1,431,000	96.2	%	100.0	%

1/ Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP

2/ Annualized Revenue is September, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12.

3/ Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City retail properties

Highwoods Properties, Inc. Page 11 9/30/06

Occupancy Trends - Office, Industrial and Retail Properties 1/

Market	Measurement	09/30/06		06/30/06		03/31/06		12/31/05		09/30/05
Atlanta	Rentable Square Feet	5,584,000		5,584,000		5,584,000		6,806,000		6,818,000
	Occupancy	92.4	%	91.8	%	91.1	%	87.4	%	83.3	%
	Current Properties 2/	92.2	%	91.6	%	91.0	%	90.8	%	88.0	%
Columbia	Rentable Square Feet	252,000		252,000		252,000		426,000		426,000
	Occupancy	49.4	%	49.8	%	41.4	%	58.9	%	62.0	%
	Current Properties 2/	49.4	%	49.8	%	41.4	%	38.2	%	42.0	%
Greenville	Rentable Square Feet	1,109,000		1,110,000		1,106,000		1,105,000		1,105,000
	Occupancy	75.0	%	68.8	%	73.4	%	73.0	%	71.2	%
	Current Properties 2/	75.0	%	68.8	%	73.2	%	72.7	%	70.9	%
Kansas City 3/	Rentable Square Feet	2,329,000		2,306,000		2,306,000		2,314,000		2,315,000
	Occupancy	90.7	%	89.9	%	90.4	%	92.2	%	91.7	%
	Current Properties 2/	90.6	%	89.9	%	90.4	%	92.5	%	92.1	%
Memphis	Rentable Square Feet	1,197,000		1,197,000		1,197,000		1,197,000		1,216,000
	Occupancy	91.9	%	89.7	%	90.0	%	88.8	%	83.8	%
	Current Properties 2/	91.9	%	89.7	%	89.9	%	88.8	%	83.8	%
Nashville	Rentable Square Feet	2,875,000		2,874,000		2,874,000		2,874,000		2,874,000
	Occupancy	92.8	%	90.8	%	90.6	%	94.0	%	95.6	%
	Current Properties 2/	92.8	%	90.8	%	90.6	%	94.0	%	95.6	%
Orlando	Rentable Square Feet	218,000		218,000		218,000		218,000		218,000
	Occupancy	100.0	%	100.0	%	99.5	%	100.0	%	100.0	%
	Current Properties 2/	100.0	%	100.0	%	99.5	%	100.0	%	100.0	%
Piedmont Triad	Rentable Square Feet	5,589,000		5,598,000		5,589,000		5,589,000		5,589,000
	Occupancy	89.9	%	88.6	%	86.7	%	93.1	%	89.1	%
	Current Properties 2/	89.9	%	88.8	%	86.9	%	93.3	%	89.2	%
Raleigh	Rentable Square Feet	3,812,000		4,101,000		4,102,000		4,232,000		4,358,000
	Occupancy	82.6	%	83.0	%	82.7	%	87.5	%	85.5	%
	Current Properties 2/	82.6	%	82.6	%	82.6	%	87.6	%	86.6	%
Richmond	Rentable Square Feet	1,954,000		1,954,000		1,954,000		1,955,000		1,955,000
	Occupancy	88.6	%	88.0	%	91.3	%	94.4	%	93.1	%
	Current Properties 2/	88.6	%	88.0	%	91.3	%	94.4	%	93.2	%
Tampa	Rentable Square Feet	2,524,000		2,524,000		2,523,000		2,989,000		2,851,000
	Occupancy	96.0	%	93.6	%	91.9	%	87.6	%	76.7	%
	Current Properties 2/	95.8	%	93.3	%	91.4	%	88.9	%	77.5	%
Total 4/	Rentable Square Feet	27,443,000		27,718,000		27,705,000		29,705,000		29,725,000
	Occupancy	89.4	%	88.1	%	87.7	%	89.1	%	85.8	%
	Current Properties 2/	89.3	%	87.8	%	87.4	%	89.9	%	87.3	%

1/ Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP

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

3/ Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City retail properties

4/ Excludes a 100,000 square foot building located in South Florida

Highwoods Properties, Inc. Page 12 9/30/06

Leasing Statistics

Office Portfolio 1/

	Three Months Ended
	9/30/06 2/			6/30/06 3/			3/31/06 4/			12/31/05 5/			9/30/05 6/			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		140			141			188			171			180			164
Rentable square footage leased		915,289			950,460			944,222			1,169,148			1,069,468			1,009,717
Square footage of Renewal Deals		681,640			486,998			528,275			890,582			826,512			682,801
Renewed square footage (% of total)		74.5	%		51.2	%		55.9	%		76.2	%		77.3	%		67.6	%
New Leases square footage (% of total)		25.5	%		48.8	%		44.1	%		23.8	%		22.7	%		32.4	%
Weighted average per rentable square foot over the lease term:
Base rent	$	19.23		$	17.29		$	18.06		$	17.37		$	17.71		$	17.93
Tenant improvements		(1.56	)		(1.71	)		(1.52	)		(1.67	)		(1.10	)		(1.51	)
Leasing commissions 7/		(0.46	)		(0.48	)		(0.62	)		(0.66	)		(0.57	)		(0.56	)
Rent concessions		(0.11	)		(0.22	)		(0.31	)		(0.27	)		(0.27	)		(0.24	)
Effective rent		17.10			14.88			15.61			14.77			15.77			15.62
Expense stop		(5.04	)		(5.53	)		(5.57	)		(4.79	)		(4.85	)		(5.16	)
Equivalent effective net rent	$	12.06		$	9.35		$	10.04		$	9.98		$	10.92		$	10.46
Weighted average term in years		4.5			4.5			4.3			5.0			3.8			4.4
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	7,994,295		$	8,416,490		$	7,270,758		$	10,506,779		$	5,996,413		$	8,036,947
Rentable square feet		915,289			950,460			944,222			1,169,148			1,069,468			1,009,717
Per rentable square foot	$	8.73		$	8.86		$	7.70		$	8.99		$	5.61		$	7.96
Leasing Commissions:
Total dollars committed under signed leases 7/	$	2,144,582		$	2,198,017		$	2,363,857		$	3,551,312		$	2,398,139		$	2,531,181
Rentable square feet		915,289			950,460			944,222			1,169,148			1,069,468			1,009,717
Per rentable square foot	$	2.34		$	2.31		$	2.50		$	3.04		$	2.24		$	2.51
Total:
Total dollars committed under signed leases	$	10,138,877		$	10,614,507		$	9,634,615		$	14,058,091		$	8,394,552		$	10,568,128
Rentable square feet		915,289			950,460			944,222			1,169,148			1,069,468			1,009,717
Per rentable square foot	$	11.08		$	11.17		$	10.20		$	12.02		$	7.85		$	10.47

1/ Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP

2/ Includes 179K square feet of leases that start in 2008 or later

3/ Includes 74K square feet of leases that start in 2008 or later

4/ Includes 82K square feet of leases that start in 2008 or later

5/ Includes 171K square feet of leases that start in 2008 or later

6/ Includes 115K square feet of leases that start in 2008 or later

7/ Excludes a full allocation of internal leasing costs

Highwoods Properties, Inc. Page 13 9/30/06

Leasing Statistics

Industrial Portfolio

	Three Months Ended
	9/30/06			6/30/06 1/			3/31/06 2/			12/31/05 3/			9/30/05 4/			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		23			36			22			29			32			28
Rentable square footage leased		485,936			974,807			300,496			532,917			498,819			558,595
Square footage of Renewal Deals		237,061			543,537			165,621			274,174			349,405			313,960
Renewed square footage (% of total)		48.8	%		55.8	%		55.1	%		51.4	%		70.0	%		56.2	%
New Leases square footage (% of total)		51.2	%		44.2	%		44.9	%		48.6	%		30.0	%		43.8	%
Weighted average per rentable square foot over the lease term:
Base rent	$	4.13		$	3.44		$	4.46		$	4.14		$	4.19		$	4.07
Tenant improvements		(0.31	)		(0.17	)		(0.79	)		(0.32	)		(0.45	)		(0.41	)
Leasing commissions 5/		(0.09	)		(0.07	)		(0.15	)		(0.14	)		(0.06	)		(0.10	)
Rent concessions		(0.11	)		(0.01	)		(0.13	)		(0.09	)		(0.02	)		(0.07	)
Effective rent		3.62			3.19			3.39			3.59			3.66			3.49
Expense stop		(0.17	)		(0.10	)		(0.17	)		(0.15	)		(0.38	)		(0.19	)
Equivalent effective net rent	$	3.45		$	3.09		$	3.22		$	3.44		$	3.28		$	3.30
Weighted average term in years		3.8			2.9			3.5			3.9			4.1			3.6
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	732,593		$	895,575		$	1,032,151		$	796,212		$	1,256,241		$	942,554
Rentable square feet		485,936			974,807			300,496			532,917			498,819			558,595
Per rentable square foot	$	1.51		$	0.92		$	3.43		$	1.49		$	2.52		$	1.69
Leasing Commissions:
Total dollars committed under signed leases 5/	$	109,087		$	144,376		$	191,615		$	355,767		$	185,669		$	197,303
Rentable square feet		485,936			974,807			300,496			532,917			498,819			558,595
Per rentable square foot	$	0.22		$	0.15		$	0.64		$	0.67		$	0.37		$	0.35
Total:
Total dollars committed under signed leases	$	841,680		$	1,039,951	��	$	1,223,766		$	1,151,979		$	1,441,910		$	1,139,857
Rentable square feet		485,936			974,807			300,496			532,917			498,819			558,595
Per rentable square foot	$	1.73		$	1.07		$	4.07		$	2.16		$	2.89		$	2.04

1/ Includes 14K square feet of leases that start in 2008 or later

2/ Includes 10K square feet of leases that start in 2008 or later

3/ Includes 12K square feet of leases that start in 2008 or later

4/ Includes 113K square feet of leases that start in 2008 or later

5/ Excludes a full allocation of internal leasing costs

Highwoods Properties, Inc. Page 14 9/30/06

Leasing Statistics

Retail Portfolio

	Three Months Ended
	09/30/06			06/30/06			3/31/06			12/31/05			9/30/05			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		8			5			12			9			7			8
Rentable square footage leased		26,472			13,573			49,479			19,320			10,721			23,913
Square footage of Renewal Deals		17,179			3,919			36,129			2,729			6,502			13,292
Renewed square footage (% of total)		64.9	%		28.9	%		73.0	%		14.1	%		60.6	%		55.6	%
New Leases square footage (% of total)		35.1	%		71.1	%		27.0	%		85.9	%		39.4	%		44.4	%
Weighted average per rentable square foot over the lease term:
Base rent	$	24.75		$	30.32		$	19.22		$	23.03		$	17.61		$	22.99
Tenant improvements		(1.40	)		(4.28	)		(0.41	)		(1.33	)		(1.21	)		(1.73	)
Leasing commissions 1/		(0.61	)		(1.04	)		(0.28	)		(0.60	)		(1.11	)		(0.73	)
Rent concessions		0.00			0.00			(0.06	)		(0.35	)		(0.08	)		(0.10	)
Effective rent		22.74			25.00			18.47			20.75			15.21			20.43
Expense stop		0.00			0.00			0.00			0.00			0.00			0.00
Equivalent effective net rent	$	22.74		$	25.00		$	18.47		$	20.75		$	15.21		$	20.43
Weighted average term in years		5.2			10.8			11.1			6.1			4.3			7.5
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	288,272		$	838,555		$	186,372		$	251,252		$	62,187		$	325,328
Rentable square feet		26,472			13,573			49,479			19,320			10,721			23,913
Per rentable square foot	$	10.89		$	61.78		$	3.77		$	13.00		$	5.80		$	13.60
Leasing Commissions:
Total dollars committed under signed leases 1/	$	46,048		$	63,681		$	42,804		$	13,721		$	12,026		$	35,656
Rentable square feet		26,472			13,573			49,479			19,320			10,721			23,913
Per rentable square foot	$	1.74		$	4.69		$	0.87		$	0.71		$	1.12		$	1.49
Total:
Total dollars committed under signed leases	$	334,320		$	902,236		$	229,176		$	264,973		$	74,213		$	360,984
Rentable square feet		26,472			13,573			49,479			19,320			10,721			23,913
Per rentable square foot	$	12.63		$	66.47		$	4.63		$	13.71		$	6.92		$	15.10

1/ Excludes a full allocation of internal leasing costs

Highwoods Properties, Inc. Page 15 9/30/06

Leasing Statistics by Market

For the Three Months ended September 30, 2006

Office Portfolio 1/

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/
Raleigh	292,757	3.5	$	19.93	$	6.94	$	1.51
Nashville	142,134	7.0		20.01		8.81		4.04
Piedmont Triad	102,234	4.7		13.91		5.31		0.15
Richmond	93,800	5.8		19.36		12.29		3.65
Memphis	85,140	3.6		20.11		4.39		1.48
Atlanta	69,015	2.7		18.58		8.07		1.61
Greenville	59,716	4.7		18.34		22.15		4.70
Kansas City	39,651	4.2		19.07		11.91		3.66
Tampa	24,377	4.5		23.77		10.24		2.14
Orlando	6,465	5.0		24.42		6.00		0.00
	915,289	4.5	$	19.12	$	8.73	$	2.34

Industrial Portfolio

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/
Piedmont Triad	285,523	2.2	$	4.44	$	1.67	$	0.15
Atlanta	200,413	6.1		3.42		1.28		0.30
	485,936	3.8	$	4.02	$	1.51	$	0.22

Retail Portfolio

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF
Kansas City	26,472	5.2	$	24.75	$	10.89	$	1.74
	26,472	5.2	$	24.75	$	10.89	$	1.74

1/ Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP

2/ Lease commisions per square foot excludes capitalized internal leasing costs.

Highwoods Properties, Inc. Page 16 9/30/06

Rental Rate Comparisons by Market

For the Three Months ended September 30, 2006

Office Portfolio 1/

Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Raleigh	292,757	$	19.93	$	18.78	6.1	%
Nashville	142,134		20.01		18.71	6.9	%
Piedmont Triad	102,234		13.91		13.12	6.0	%
Richmond	93,800		19.36		17.89	8.2	%
Memphis	85,140		20.11		19.20	4.7	%
Atlanta	69,015		18.58		19.23	-3.4	%
Greenville	59,716		18.34		18.50	-0.9	%
Kansas City	39,651		19.07		19.86	-4.0	%
Tampa	24,377		23.77		21.82	9.0	%
Orlando	6,465		24.42		25.48	-4.2	%
GAAP Rent Growth	915,289	$	19.12	$	18.25	4.8	%
Cash Rent Growth	915,289	$	18.47	$	19.28	-4.2	%

Industrial Portfolio

Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Piedmont Triad	285,523	$	4.44	$	3.72	19.3	%
Atlanta	200,413		3.42		4.14	-17.4	%
GAAP Rent Growth	485,936	$	4.02	$	3.98	1.0	%
Cash Rent Growth	485,936	$	3.95	$	4.18	-5.5	%

Retail Portfolio

Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Kansas City	26,472	$	24.75	$	25.81	-4.1	%
GAAP Rent Growth	26,472	$	24.75	$	25.81	-4.1	%
Cash Rent Growth	26,472	$	24.46	$	26.09	-6.3	%

1/ Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP

Highwoods Properties, Inc. Page 17 9/30/06

Lease Expirations

September 30, 2006

Dollars in thousands

Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Revenue 1/		Average Rental Rate		Percent of Annualized Revenue 1/
Office: 2/
2006 /3	512,551	3.0	%	$	9,305	$	18.15	2.9	%
2007	1,572,972	9.1	%		28,499		18.12	9.0	%
2008	2,353,360	13.7	%		42,636		18.12	13.5	%
2009	2,743,935	15.9	%		51,667		18.83	16.4	%
2010	2,312,777	13.4	%		46,700		20.19	14.8	%
2011	2,741,387	15.9	%		48,443		17.67	15.3	%
2012	1,434,917	8.3	%		27,247		18.99	8.6	%
2013	687,508	4.0	%		11,588		16.86	3.7	%
2014	473,737	2.7	%		9,962		21.03	3.2	%
2015	652,611	3.8	%		13,285		20.36	4.2	%
2016 and thereafter	1,749,804	10.2	%		26,381		15.08	8.4	%
	17,235,559	100.0	%	$	315,713	$	18.32	100.0	%
Industrial:
2006 /4	519,636	8.6	%	$	2,103	$	4.05	6.9	%
2007	1,002,872	16.5	%		5,870		5.85	19.1	%
2008	1,290,892	21.3	%		5,894		4.57	19.1	%
2009	728,793	12.0	%		4,384		6.02	14.3	%
2010	574,113	9.5	%		3,091		5.38	10.1	%
2011	535,106	8.8	%		2,403		4.49	7.8	%
2012	247,355	4.1	%		1,323		5.35	4.3	%
2013	210,689	3.5	%		1,128		5.35	3.7	%
2014	212,965	3.5	%		1,151		5.40	3.8	%
2015	169,882	2.8	%		695		4.09	2.3	%
2016 and thereafter	567,890	9.4	%		2,638		4.65	8.6	%
	6,060,193	100.0	%	$	30,680	$	5.06	100.0	%

1/ Annualized Revenue is September, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12.

2/ Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP

3/ Includes 91,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

4/ Includes 108,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue

Note: 2006 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Highwoods Properties, Inc. Page 18 9/30/06

Lease Expirations

September 30, 2006

(Continued)

Dollars in thousands

Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Revenue 1/		Average Rental Rate		Percent of Annualized Revenue 1/
Retail:
2006 2/	24,365	1.8	%	$	653	$	26.80	1.7	%
2007	78,854	5.8	%		2,304		29.22	6.0	%
2008	132,595	9.7	%		3,692		27.84	9.6	%
2009	181,896	13.3	%		4,729		26.00	12.3	%
2010	99,390	7.3	%		3,412		34.33	8.9	%
2011	72,512	5.3	%		2,110		29.10	5.5	%
2012	145,542	10.7	%		4,312		29.63	11.2	%
2013	107,006	7.8	%		2,617		24.46	6.8	%
2014	79,410	5.8	%		1,465		18.45	3.8	%
2015	132,384	9.7	%		4,263		32.20	11.1	%
2016 and thereafter	310,585	22.8	%		8,842		28.47	23.1	%
	1,364,539	100.0	%	$	38,399	$	28.14	100.0	%
Total:
2006 3/4/	1,056,552	4.3	%	$	12,061	$	11.42	3.1	%
2007	2,654,698	10.8	%		36,673		13.81	9.5	%
2008	3,776,847	15.2	%		52,222		13.83	13.6	%
2009	3,654,624	14.8	%		60,780		16.63	15.9	%
2010	2,986,280	12.1	%		53,203		17.82	13.8	%
2011	3,349,005	13.6	%		52,956		15.81	13.8	%
2012	1,827,814	7.4	%		32,882		17.99	8.5	%
2013	1,005,203	4.1	%		15,333		15.25	4.0	%
2014	766,112	3.1	%		12,578		16.42	3.3	%
2015	954,877	3.9	%		18,243		19.11	4.7	%
2016 and thereafter	2,628,279	10.7	%		37,861		14.41	9.8	%
	24,660,291	100.0	%	$	384,792	$	15.60	100.0	%

1/ Annualized Revenue is September, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12.

2/ Includes 20,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue

3/ Includes 219,000 square feet of leases that are on a month to month basis or 0.6% of total annualized revenue

4/ Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP

Note: 2006 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Highwoods Properties, Inc. Page 19 9/30/06

Office Lease Expirations by Market by Quarter 1/

Dollars in thousands

		Three Months Ended												Total
		12/31/06 2/			03/31/07			06/30/07			09/30/07
Atlanta	RSF		45,999			44,917			13,512			169,055			273,483
	% of Total Office RSF		0.3	%		0.3	%		0.1	%		1.0	%		1.6	%
	Annualized Revenue 3/	$	404		$	740		$	128		$	2,938		$	4,210
	% of Total Office Annl Rev		0.1	%		0.2	%		0.0	%		0.9	%		1.3	%
Columbia	RSF		2,831			0			0			0			2,831
	% of Total Office RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 3/	$	42		$	—		$	—		$	—		$	42
	% of Total Office Annl Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Greenville	RSF		68,740			1,708			4,849			5,201			80,498
	% of Total Office RSF		0.4	%		0.0	%		0.0	%		0.0	%		0.5	%
	Annualized Revenue 3/	$	537		$	32		$	87		$	108		$	764
	% of Total Office Annl Rev		0.2	%		0.0	%		0.0	%		0.0	%		0.2	%
Kansas City	RSF		52,411			30,080			18,670			15,551			116,712
	% of Total Office RSF		0.3	%		0.2	%		0.1	%		0.1	%		0.7	%
	Annualized Revenue 3/	$	1,090		$	625		$	455		$	297		$	2,467
	% of Total Office Annl Rev		0.3	%		0.2	%		0.1	%		0.1	%		0.8	%
Memphis	RSF		20,894			47,239			9,554			18,629			96,316
	% of Total Office RSF		0.1	%		0.3	%		0.1	%		0.1	%		0.6	%
	Annualized Revenue 3/	$	158		$	933		$	165		$	374		$	1,630
	% of Total Office Annl Rev		0.1	%		0.3	%		0.1	%		0.1	%		0.5	%
Nashville	RSF		128,706			33,720			111,414			80,436			354,276
	% of Total Office RSF		0.7	%		0.2	%		0.6	%		0.5	%		2.1	%
	Annualized Revenue 3/	$	2,706		$	694		$	1,690		$	1,628		$	6,718
	% of Total Office Annl Rev		0.9	%		0.2	%		0.5	%		0.5	%		2.1	%
Orlando	RSF		0			2,389			11,607			1,358			15,354
	% of Total Office RSF		0.0	%		0.0	%		0.1	%		0.0	%		0.1	%
	Annualized Revenue 3/	$	—		$	62		$	203		$	32		$	297
	% of Total Office Annl Rev		0.0	%		0.0	%		0.1	%		0.0	%		0.1	%
Piedmont Triad	RSF		44,610			192,238			34,933			53,240			325,021
	% of Total Office RSF		0.3	%		1.1	%		0.2	%		0.3	%		1.9	%
	Annualized Revenue 3/	$	656		$	2,569		$	619		$	681		$	4,525
	% of Total Office Annl Rev		0.2	%		0.8	%		0.2	%		0.2	%		1.4	%
Raleigh	RSF		73,132			101,490			44,751			80,190			299,563
	% of Total Office RSF		0.4	%		0.6	%		0.3	%		0.5	%		1.7	%
	Annualized Revenue 3/	$	2,360		$	2,030		$	797		$	1,585		$	6,772
	% of Total Office Annl Rev		0.7	%		0.6	%		0.3	%		0.5	%		2.1	%
Richmond	RSF		55,844			43,924			52,979			30,460			183,207
	% of Total Office RSF		0.3	%		0.3	%		0.3	%		0.2	%		1.1	%
	Annualized Revenue 3/	$	1,144		$	892		$	893		$	564		$	3,493
	% of Total Office Annl Rev		0.4	%		0.3	%		0.3	%		0.2	%		1.1	%
Tampa	RSF		18,289			23,922			20,489			27,524			90,224
	% of Total Office RSF		0.1	%		0.1	%		0.1	%		0.2	%		0.5	%
	Annualized Revenue 3/	$	205		$	534		$	473		$	652		$	1,864
	% of Total Office Annl Rev		0.1	%		0.2	%		0.1	%		0.2	%		0.6	%
Other	RSF		1,095			0			12,707			1,130			14,932
	% of Total Office RSF		0.0	%		0.0	%		0.1	%		0.0	%		0.1	%
	Annualized Revenue 3/	$	5		$	—		$	334		$	23		$	362
	% of Total Office Annl Rev		0.0	%		0.0	%		0.1	%		0.0	%		0.1	%
Total	RSF		512,551			521,627			335,465			482,774			1,852,417
	% of Total Office RSF		2.9	%		3.0	%		2.0	%		2.8	%		10.7	%
	Annualized Revenue 3/	$	9,307		$	9,111		$	5,844		$	8,882		$	33,144
	% of Total Office Annl Rev		3.0	%		2.9	%		1.9	%		2.8	%		10.5	%

1/ Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP

2/ Includes 91,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

3/ Annualized Revenue is September, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12.

Highwoods Properties, Inc. Page 20 9/30/06

Industrial Lease Expirations by Market by Quarter

Dollars in thousands

			Three Months Ended												Total
			12/31/06 1/			03/31/07			06/30/07			09/30/07
Atlanta		RSF		128,859			247,828			36,576			33,600			446,863
		% of Total Industrial RSF		2.1	%		4.1	%		0.6	%		0.6	%		7.4	%
		Annualized Revenue 2/	$	611		$	1,420		$	177		$	123		$	2,331
		% of Total Industrial Annl Rev		2.0	%		4.6	%		0.6	%		0.4	%		7.6	%
Greenville		RSF		0			0			16,081			0			16,081
		% of Total Industrial RSF		0.0	%		0.0	%		0.3	%		0.0	%		0.3	%
		Annualized Revenue 2/	$	—		$	—		$	212		$	—		$	212
		% of Total Industrial Annl Rev		0.0	%		0.0	%		0.7	%		0.0	%		0.7	%
Kansas City		RSF		0			0			0			0			0
		% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
		Annualized Revenue 2/	$	—		$	—		$	—		$	—		$	—
		% of Total Industrial Annl Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Piedmont Triad		RSF		390,777			138,048			214,706			164,674			908,205
		% of Total Industrial RSF		6.4	%		2.3	%		3.5	%		2.7	%		15.0	%
		Annualized Revenue 2/	$	1,493		$	797		$	959		$	1,337		$	4,586
		% of Total Industrial Annl Rev		4.9	%		2.6	%		3.1	%		4.4	%		14.9	%
Raleigh		RSF		0			0			0			0			0
		% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
		Annualized Revenue 2/	$	—		$	—		$	—		$	—		$	—
		% of Total Industrial Annl Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Total		RSF		519,636			385,876			267,363			198,274			1,371,149
	��	% of Total Industrial RSF		8.6	%		6.4	%		4.4	%		3.3	%		22.6	%
		Annualized Revenue 2/	$	2,104		$	2,217		$	1,348		$	1,460		$	7,129
		% of Total Industrial Annl Rev		6.9	%		7.2	%		4.4	%		4.8	%		23.3	%

1/ Includes 108,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue

2/ Annualized Revenue is September, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12.

Highwoods Properties, Inc. Page 21 9/30/06

Office Lease Expirations by Market by Year 1/

Dollars in thousands

		2006 2/			2007			2008			2009			Thereafter
Atlanta	RSF		45,999			254,633			455,714			337,708			1,088,689
	% of Total Office RSF		0.3	%		1.5	%		2.6	%		2.0	%		6.3	%
	Annualized Revenue 3/	$	404		$	4,447		$	7,521		$	5,825		$	22,681
	% of Total Office Annl Rev		0.1	%		1.4	%		2.4	%		1.8	%		7.2	%
Columbia	RSF		2,831			3,258			69,987			8,409			40,054
	% of Total Office RSF		0.0	%		0.0	%		0.4	%		0.0	%		0.2	%
	Annualized Revenue 3/	$	42		$	56		$	1,068		$	128		$	550
	% of Total Office Annl Rev		0.0	%		0.0	%		0.3	%		0.0	%		0.2	%
Greenville	RSF		68,740			11,758			99,410			60,122			565,667
	% of Total Office RSF		0.4	%		0.1	%		0.6	%		0.3	%		3.3	%
	Annualized Revenue 3/	$	537		$	227		$	1,840		$	721		$	8,805
	% of Total Office Annl Rev		0.2	%		0.1	%		0.6	%		0.2	%		2.8	%
Kansas City	RSF		52,411			79,443			75,884			104,489			420,710
	% of Total Office RSF		0.3	%		0.5	%		0.4	%		0.6	%		2.4	%
	Annualized Revenue 3/	$	1,090		$	1,689		$	1,577		$	2,139		$	10,371
	% of Total Office Annl Rev		0.3	%		0.5	%		0.5	%		0.7	%		3.3	%
Memphis	RSF		20,894			88,213			121,947			221,026			648,453
	% of Total Office RSF		0.1	%		0.5	%		0.7	%		1.3	%		3.8	%
	Annualized Revenue 3/	$	158		$	1,730		$	2,557		$	4,140		$	12,656
	% of Total Office Annl Rev		0.1	%		0.5	%		0.8	%		1.3	%		4.0	%
Nashville	RSF		128,706			237,647			226,798			659,083			1,428,384
	% of Total Office RSF		0.7	%		1.4	%		1.3	%		3.8	%		8.3	%
	Annualized Revenue 3/	$	2,706		$	4,245		$	4,474		$	12,506		$	26,977
	% of Total Office Annl Rev		0.9	%		1.3	%		1.4	%		4.0	%		8.5	%
Orlando	RSF		0			21,694			6,133			6,788			183,317
	% of Total Office RSF		0.0	%		0.1	%		0.0	%		0.0	%		1.1	%
	Annualized Revenue 3/	$	—		$	453		$	153		$	157		$	3,870
	% of Total Office Annl Rev		0.0	%		0.1	%		0.0	%		0.0	%		1.2	%
Piedmont Triad	RSF		44,610			315,085			389,959			134,668			1,083,260
	% of Total Office RSF		0.3	%		1.8	%		2.3	%		0.8	%		6.3	%
	Annualized Revenue 3/	$	656		$	4,384		$	6,282		$	2,102		$	14,150
	% of Total Office Annl Rev		0.2	%		1.4	%		2.0	%		0.7	%		4.5	%
Raleigh	RSF		73,132			274,402			409,942			542,987			1,892,884
	% of Total Office RSF		0.4	%		1.6	%		2.4	%		3.2	%		11.0	%
	Annualized Revenue 3/	$	2,359		$	5,374		$	7,280		$	10,676		$	30,764
	% of Total Office Annl Rev		0.7	%		1.7	%		2.3	%		3.4	%		9.7	%
Richmond	RSF		55,844			156,127			236,357			221,541			1,060,447
	% of Total Office RSF		0.3	%		0.9	%		1.4	%		1.3	%		6.2	%
	Annualized Revenue 3/	$	1,144		$	2,910		$	4,549		$	4,121		$	19,329
	% of Total Office Annl Rev		0.4	%		0.9	%		1.4	%		1.3	%		6.1	%
Tampa	RSF		18,289			116,875			242,866			440,948			1,605,406
	% of Total Office RSF		0.1	%		0.7	%		1.4	%		2.6	%		9.3	%
	Annualized Revenue 3/	$	205		$	2,628		$	4,842		$	9,038		$	32,674
	% of Total Office Annl Rev		0.1	%		0.8	%		1.5	%		2.9	%		10.3	%
Other	RSF		1,095			13,837			18,363			6,166			35,470
	% of Total Office RSF		0.0	%		0.1	%		0.1	%		0.0	%		0.2	%
	Annualized Revenue 3/	$	5		$	357		$	492		$	114		$	775
	% of Total Office Annl Rev		0.0	%		0.1	%		0.2	%		0.0	%		0.2	%
Total	RSF		512,551			1,572,972			2,353,360			2,743,935			10,052,741
	% of Total Office RSF		3.0	%		9.1	%		13.7	%		15.9	%		58.3	%
	Annualized Revenue 3/	$	9,306		$	28,500		$	42,635		$	51,667		$	183,602
	% of Total Office Annl Rev		2.9	%		9.0	%		13.5	%		16.4	%		58.2	%

1/ Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP

2/ Includes 91,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

3/ Annualized Revenue is September, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12.

Highwoods Properties, Inc. Page 22 9/30/06

Industrial Lease Expirations by Market by Year

Dollars in thousands

		2006 1/			2007			2008			2009			Thereafter
Atlanta	RSF		128,859			373,043			575,710			302,155			1,594,376
	% of Total Industrial RSF		2.1	%		6.2	%		9.5	%		5.0	%		26.3	%
	Annualized Revenue 2/	$	610		$	1,994		$	2,918		$	1,877		$	8,110
	% of Total Industrial Annl Rev		2.0	%		6.5	%		9.5	%		6.1	%		26.4	%
Greenville	RSF		0			16,081			5,350			4,794			0
	% of Total Industrial RSF		0.0	%		0.3	%		0.1	%		0.1	%		0.0	%
	Annualized Revenue 2/	$	—		$	212		$	61		$	38		$	—
	% of Total Industrial Annl Rev		0.0	%		0.7	%		0.2	%		0.1	%		0.0	%
Kansas City	RSF		0			0			0			1,756			0
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 2/	$	—		$	—		$	—		$	20		$	—
	% of Total Industrial Annl Rev		0.0	%		0.0	%		0.0	%		0.1	%		0.0	%
Piedmont Triad	RSF		390,777			613,748			709,832			420,088			923,624
	% of Total Industrial RSF		6.4	%		10.1	%		11.7	%		6.9	%		15.2	%
	Annualized Revenue 2/	$	1,493		$	3,665		$	2,915		$	2,448		$	4,320
	% of Total Industrial Annl Rev		4.9	%		11.9	%		9.5	%		8.0	%		14.1	%
Raleigh	RSF		0			0			0			0			0
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 2/	$	—		$	—		$	—		$	—		$	—
	% of Total Industrial Annl Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Total	RSF		519,636			1,002,872			1,290,892			728,793			2,518,000
	% of Total Industrial RSF		8.6	%		16.5	%		21.3	%		12.0	%		41.5	%
	Annualized Revenue 2/	$	2,103		$	5,871		$	5,894		$	4,383		$	12,430
	% of Total Industrial Annl Rev		6.9	%		19.1	%		19.2	%		14.3	%		40.5	%

1/ Includes 108,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue

2/ Annualized Revenue is September, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12.

Highwoods Properties, Inc. Page 23 9/30/06

Customer Diversification 1/

September 30, 2006

Dollars in thousands

Top 20 Customers

Customer	RSF	Annualized Revenue 2/		Percent of Annualized Revenue 2/		Average Remaining Lease Term in Years
Federal Government	1,454,050	$	25,926	6.75	%	8.5
AT&T	537,529		10,425	2.71	%	2.4
Price Waterhouse Coopers	332,931		8,408	2.19	%	3.6
State Of Georgia	356,175		7,036	1.83	%	3.6
T-Mobile USA	205,855		5,221	1.36	%	7.3
US Airways	293,007		4,356	1.13	%	1.0
Volvo	278,940		3,972	1.03	%	2.7
Lockton Companies	145,651		3,736	0.97	%	8.4
Northern Telecom	246,000		3,651	0.95	%	1.4
SCI Services, Inc.	162,784		3,499	0.91	%	10.8
Metropolitan Life Insurance	174,944		3,398	0.88	%	7.3
BB&T	197,893		2,930	0.76	%	5.8
Jacobs Engineering Group	181,794		2,446	0.64	%	9.4
Lifepoint Corporate Services	120,112		2,299	0.60	%	4.8
Vanderbilt University	121,897		2,251	0.59	%	9.0
Icon Clinical Research	101,249		2,217	0.58	%	5.7
Wachovia	98,531		2,173	0.57	%	2.3
The Martin Agency	118,518		2,038	0.53	%	10.5
Infineon Technologies	110,572		2,001	0.52	%	6.3
First Citizens Bank & Trust	49,677		1,995	0.52	%	0.4
	5,288,109	$	99,978	26.02	%	5.8

By Industry

Category	Percent of Annualized Revenue 2/
Professional, Scientific, and Technical Services	21.0	%
Insurance	9.4	%
Government/Public Administration	9.4	%
Finance/Banking	9.3	%
Retail Trade	7.6	%
Telecommunication	7.0	%
Manufacturing	6.8	%
Health Care and Social Assistance	6.0	%
Wholesale Trade	5.8	%
Real Estate Rental and Leasing	3.8	%
Transportation and Warehousing	3.1	%
Accommodation and Food Services	2.8	%
Administrative and Support Services	2.6	%
Other Services (except Public Administration)	2.5	%
Information	1.9	%
Educational Services	1.0	%
	100.0	%

1/ Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP

2/ Annualized Revenue is September, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12.

Highwoods Properties, Inc. Page 24 9/30/06

Acquisition Activity

Dollars in thousands

Name	Market	Type	Date Acquired	Square Footage	Total Cost
First quarter 2006:
None
Second quarter 2006:
None
Third quarter 2006:
None

Highwoods Properties, Inc. Page 25 9/30/06

Disposition Activity

Dollars in thousands

Name	Market	Type 1/	Date Sold	Square Footage	Occupancy		Gross Sales Price
First quarter 2006:
Office properties	Atlanta/Columbia/Tampa	O	01/09/06	1,596,000	74.9	%
Industrial properties	Atlanta	I	01/09/06	271,000	72.8	%
				1,867,000	74.6	%	$	141,000
Concourse	Raleigh	O	03/30/06	132,000	77.2	%		12,900
First quarter totals				1,999,000	74.8	%	$	153,900
Second quarter 2006:
None				—	—	%	$	—
Third quarter 2006:
Office properties	Raleigh	O	08/29/06	191,000	94.2	%
Industrial properties	Raleigh	I	08/29/06	101,000	63.8	%
				292,000	83.7	%	$	22,800
Third quarter totals				292,000	83.7	%		22,800
2006 totals				2,291,000	75.9	%	$	176,700

1/ The letters “O” and “I” represent Office and Industrial, respectively.

Highwoods Properties, Inc. Page 26 9/30/06

Development Activity

Dollars in thousands

Property	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 09/30/06		Pre- Leasing		Estimated Completion Date	Estimated Stabilization Date
In - Process
Office:
Dept. of Homeland Security	Atlanta	O	91,000	$	21,700	$	4,189	100	%	3Q 07	3Q 07
Cordoba 2/	Kansas City	O	24,000		6,021		3,998	0	%	4Q 06	1Q 08
ThyssenKrupp	Memphis	O	78,000		8,800		6,234	100	%	1Q 07	1Q 07
Healthways	Nashville	O	255,000		58,300		7,427	100	%	2Q 08	2Q 08
Berkshire	Orlando	O	99,000		13,197		4,588	4	%	1Q 07	2Q 08
RBC Plaza 3/	Raleigh	O	292,000		76,056		2,851	64	%	4Q08	4Q09
3330 Healy Rd 2/	Piedmont Triad	O	40,000		3,600		3,462	0	%	4Q 06	2Q 07
North Shore Commons B	Richmond	O	95,000		13,586		5,001	0	%	2Q 07	2Q 08
Stony Point IV	Richmond	O	107,000		13,125		9,498	85	%	4Q 06	4Q 07
Highwoods Preserve VII	Tampa	O	115,000		21,245		13,663	100	%	1Q 07	4Q 08
Highwoods Bay Center I	Tampa	O	209,000		41,174		5,057	0	%	3Q 07	4Q 08
Total or Weighted Average			1,405,000	$	276,804	$	65,968	58	%
Industrial:
New Point V	Atlanta	I	263,000	$	11,620	$	2,583	0	%	2Q 07	2Q 08
Enterprise II	Piedmont Triad	I	418,000		14,400		11,895	44	%	4Q 06	4Q 08
Total or Weighted Average			681,000	$	26,020	$	14,478	27	%
In-Process Total or Weighted Average			2,086,000	$	302,824	$	80,446	48	%
Completed Not Stabilized 4/
Office:
Glenlake Four	Raleigh	O	158,000	$	27,150	$	21,222	68	%	3Q 06	1Q 08
Cool Springs III	Nashville	O	153,000		21,640		14,968	34	%	2Q 06	4Q 07
Total or Weighted Average			311,000	$	48,790	$	36,190	51	%
Grand Total or Weighted Average			2,397,000	$	351,614	$	116,636	49	%

Placed In Service

Property	Market	Type 1/	In-Service Date	Rentable Square Feet	Investment @ 09/30/06		Occ %		Leasing %
Cordoba 2/	Kansas City	R	9/1/2006	23,000	$	6,409	100	%	100	%
Griffith Rd./Boutique Shops	Piedmont Triad	R	6/1/2006	9,600		2,614	100	%	100	%
Total or Weighted Average				32,600	$	9,023	100	%	100	%

1/ The letters “O”, “I”, and “R” represent Office, Industrial, and Retail, respectively.

2/ Redevelopment property

3/ Includes ancillary retail space on the ground level of approximately 11,000 square feet

4/ Completed Not Stabilized properties are recorded in the Consolidated Balance Sheet in the Land and Building accounts, not Development-in-process.

Highwoods Properties, Inc. Page 27 9/30/06

Development Land

September 30, 2006

Dollars in thousands

Market	Usable Acres	Total Estimated Market Value
Research Triangle	252	$	52,171
Atlanta	206		39,668
Triad	78		17,179
Kansas City 1/	44		19,100
Richmond	43		9,350
Charlotte	41		9,854
Baltimore	39		10,941
Nashville	25		7,386
Tampa	23		8,825
Memphis	21		5,100
Orlando	14		12,000
Greenville	12		1,800
Total 2/ 3/	798	$	193,374

1/ Includes 27 acres of residential land

2/ Developable square footage on core land holdings, which constitute 394 of the total 798 acres, is approximately 4.0 million of office space and 1.1 million of industrial space.

3/ Includes 161 acres ($43,028,000 based on expected gross proceeds) included in property held for sale at September 30, 2006.

Highwoods Properties, Inc. Page 28 9/30/06

Unconsolidated Joint Ventures Assets, Debt and Liabilities

September 30, 2006

Dollars in thousands

				Venture’s Books
Joint Venture	Type 1/	Own%		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.0	%	$	8,360	$	207	$	695
Dallas County Partners I, LP	O/I	50.0	%		38,810		50,483		52,610
Dallas County Partners II, LP	O	50.0	%		15,244		18,721		19,772
Dallas County Partners III, LP	O	50.0	%		35		—		23
Fountain Three	O/I/R	50.0	%		29,212		33,171		34,799
RRHWoods , LLC	O/M	50.0	%		86,742		77,326		80,727
Kessinger/Hunter, LLC	—	26.5	%		8,807		—		334
4600 Madison Associates, LP	O	12.5	%		19,545		14,642		15,285
Highwoods DLF 98/29, LP	O	22.8	%		131,932		64,218		67,252
Highwoods DLF 97/26 DLF 99/32, LP	O	42.9	%		108,915		56,926		60,705
Concourse Center Associates, LLC	O	50.0	%		13,817		9,180		9,486
Plaza Colonnade, LLC	O/R	50.0	%		75,544		68,068		69,709
Highwoods KC Glenridge Office, LP	O	40.0	%		23,589		16,500		17,000
Highwoods KC Glenridge Land, LP	O	40.0	%		794		—		91
Highwoods KC Orlando, LLC	O	40.0	%		213,966		143,000		152,032
Weston Lakeside, LLC	M	50.0	%		24,206		16,809		20,302
Total				$	799,518	$	569,251	$	600,822
				Highwoods’ Share of Joint Venture
Joint Venture	Type 1/	Own%		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.00	%	$	4,096	$	101	$	341
Dallas County Partners I, LP	O/I	50.00	%		19,405		25,242		26,305
Dallas County Partners II, LP	O	50.00	%		7,622		9,361		9,886
Dallas County Partners III, LP	O	50.00	%		18		—		12
Fountain Three	O/I/R	50.00	%		14,606		16,586		17,400
RRHWoods, LLC 2/	O/M	50.00	%		43,371		38,663		40,364
Kessinger/Hunter, LLC	—	26.50	%		2,334		—		89
4600 Madison Associates, LP	O	12.50	%		2,443		1,830		1,911
Highwoods DLF 98/29, LP 2/	O	22.81	%		30,094		14,648		15,340
Highwoods DLF 97/26 DLF 99/32, LP 2/	O	42.93	%		46,757		24,438		26,061
Concourse Center Associates, LLC 2/	O	50.00	%		6,909		4,590		4,743
Plaza Colonnade, LLC	O/R	50.00	%		37,772		34,034		34,855
Highwoods KC Glenridge Office, LP	O	40.00	%		9,436		6,600		6,800
Highwoods KC Glenridge Land, LP	O	40.00	%		318		—		36
Highwoods KC Orlando, LLC 2/	O	40.00	%		85,586		57,200		60,813
Weston Lakeside, LLC 2/	M	50.00	%		12,103		8,405		10,151
Total				$	322,870	$	241,698	$	255,107

1/ The letters “O”, “I”, “R”, and “M” represent Office, Industrial, Retail, and Multi-Family, respectively.

2/ Highwoods’ share of equity from these tables will not equal Investments in Unconsolidated Affiliates on the Consolidated Balance Sheet due to various purchase accounting and related adjustments as well as negative investment balances reclassed to Liabilities, which are not reflected in the Joint Ventures’ stand-alone financial statements.

Highwoods Properties, Inc. Page 29 9/30/06

Unconsolidated Joint Ventures Income

For the Three Months Ended September 30, 2006

Dollars in thousands

			Venture’s Books
Joint Venture	Own%		Revenue		Operating Exp		Interest		Depr/Amort		Loss on Debt Extinquishment		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	680	$	474	$	5	$	124	$	—	$	77
Dallas County Partners I, LP	50.00	%		3,176		1,685		663		581		1,029		(782	)
Dallas County Partners II, LP	50.00	%		1,571		716		483		186		—		186
Dallas County Partners III, LP	50.00	%		56		58		—		1		—		(3	)
Fountain Three	50.00	%		1,888		854		525		410		407		(308	)
RRHWoods , LLC	50.00	%		4,125		2,328		991		1,016		12		(222	)
Kessinger/Hunter, LLC	26.50	%		1,804		1,325		—		160		—		319
4600 Madison Associates, LP	12.50	%		1,183		540		255		406		—		(18	)
Highwoods DLF 98/29, LP	22.80	%		5,325		1,786		1,090		901		—		1,548
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		4,289		1,456		1,102		1,001		—		730
Concourse Center Associates, LLC	50.00	%		530		139		168		83		—		140
Plaza Colonnade, LLC	50.00	%		2,226		894		996		524		—		(188	)
Highwoods KC Glenridge Office, LP	40.00	%		911		420		210		162		—		119
Highwoods KC Glenridge Land, LP	40.00	%		—		1		—		—		—		(1	)
Highwoods KC Orlando, LLC	40.00	%		8,192		3,244		1,881		2,105		—		962
Weston Lakeside, LLC	50.00	%		—		—		—		—		—		—
Total			$	35,956	$	15,920	$	8,369	$	7,660	$	1,448	$	2,559
			Highwoods’ Share of Joint Venture
Joint Venture	Own%		Revenue		Operating Exp		Interest		Depr/Amort		Loss on Debt Extinquishment		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	333	$	232	$	2	$	61	$	—	$	38
Dallas County Partners I, LP	50.00	%		1,588		843		332		291		514		(392	)
Dallas County Partners II, LP	50.00	%		786		358		242		93		—		93
Dallas County Partners III, LP	50.00	%		28		29		—		1		—		(2	)
Fountain Three	50.00	%		944		427		263		205		204		(155	)
RRHWoods , LLC 1/ 2/	50.00	%		2,063		1,164		496		508		6		(111	)
Kessinger/Hunter, LLC	26.50	%		478		351		—		42		—		85
4600 Madison Associates, LP	12.50	%		148		68		32		51		—		(3	)
Highwoods DLF 98/29, LP 1/ 2/	22.81	%		1,215		407		249		206		—		353
Highwoods DLF 97/26 DLF 99/32, LP 1/ 2/	42.93	%		1,841		625		473		430		—		313
Concourse Center Associates, LLC 1/ 2/	50.00	%		265		70		84		42		—		69
Plaza Colonnade, LLC	50.00	%		1,113		447		498		262		—		(94	)
Highwoods KC Glenridge Office, LP	40.00	%		364		168		84		65		—		47
Highwoods KC Glenridge Land, LP	40.00	%		—		—		—		—		—		—
Highwoods KC Orlando, LLC 1/ 2/	40.00	%		3,277		1,298		752		842		—		385
Weston Lakeside, LLC	50.00	%		—		—		—		—		—		—
Total			$	14,443	$	6,487	$	3,507	$	3,099	$	724	$	626

1/ Highwoods’ share of Depreciation/Amortization from these tables will not equal Depreciation and Amortization ofReal Estate Assets for Unconsolidated Affiliates on the Statement of Funds from Operations due to various purchase accountingand related adjustments, which are not reflected in the Joint Ventures’ stand-alone financial statements.

2/ Highwoods’ share of Net Income from these tables will not equal Equity in Earnings of Unconsolidated Affiliateson the Consolidated Income Statement due to various purchase accounting and related adjustments, which are not reflected

in the Joint Ventures’ stand-alone financial statements.

Highwoods Properties, Inc. Page 30 9/30/06

Unconsolidated Joint Ventures Income

For the Nine Months Ended September 30, 2006

Dollars in thousands

			Venture’s Books
Joint Venture	Own%		Revenue		Operating Exp		Interest		Depr/Amort		Loss on Debt Extinquishment		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	2,023	$	1,459	$	17	$	413	$	—	$	134
Dallas County Partners I, LP	50.00	%		8,833		4,421		2,071		1,675		1,029		(363	)
Dallas County Partners II, LP	50.00	%		4,492		1,913		1,479		557		—		543
Dallas County Partners III, LP	50.00	%		165		165		—		4		—		(4	)
Fountain Three	50.00	%		5,569		2,564		1,526		1,210		407		(138	)
RRHWoods , LLC	50.00	%		11,475		6,428		2,875		2,734		12		(574	)
Kessinger/Hunter, LLC	26.50	%		5,371		3,906		—		480		—		985
4600 Madison Associates, LP	12.50	%		3,532		1,640		775		1,201		—		(84	)
Highwoods DLF 98/29, LP	22.80	%		15,502		4,917		3,286		2,664		—		4,635
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		12,429		3,889		3,318		3,026		—		2,196
Concourse Center Associates, LLC	50.00	%		1,591		397		503		249		—		442
Plaza Colonnade, LLC	50.00	%		6,490		2,585		2,982		1,570		—		(647	)
Highwoods KC Glenridge Office, LP	40.00	%		2,776		1,199		617		484		—		476
Highwoods KC Glenridge Land, LP	40.00	%		—		21		2		—		—		(23	)
Highwoods KC Orlando, LLC	40.00	%		23,583		9,257		5,643		6,032		—		2,651
Weston Lakeside, LLC	50.00	%		—		—		—		—		—		—
Total			$	103,831	$	44,761	$	25,094	$	22,299	$	1,448	$	10,229
			Highwoods’ Share of Joint Venture
Joint Venture	Own%		Revenue		Operating Exp		Interest		Depr/Amort		Loss on Debt Extinquishment		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	991	$	715	$	8	$	202	$	—	$	66
Dallas County Partners I, LP	50.00	%		4,417		2,211		1,036		838		514		(182	)
Dallas County Partners II, LP	50.00	%		2,246		957		740		279		—		270
Dallas County Partners III, LP	50.00	%		83		83		—		2		—		(2	)
Fountain Three	50.00	%		2,785		1,282		763		605		204		(69	)
RRHWoods , LLC 1/ 2/	50.00	%		5,738		3,214		1,438		1,367		6		(287	)
Kessinger/Hunter, LLC	26.50	%		1,423		1,035		—		127		—		261
4600 Madison Associates, LP	12.50	%		442		205		97		150		—		(10	)
Highwoods DLF 98/29, LP 1/ 2/	22.81	%		3,536		1,122		750		608		—		1,056
Highwoods DLF 97/26 DLF 99/32, LP 1/ 2/	42.93	%		5,336		1,670		1,424		1,299		—		943
Concourse Center Associates, LLC 1/ 2/	50.00	%		796		199		252		125		—		220
Plaza Colonnade, LLC	50.00	%		3,245		1,293		1,491		785		—		(324	)
Highwoods KC Glenridge Office, LP	40.00	%		1,110		480		247		194		—		189
Highwoods KC Glenridge Land, LP	40.00	%		—		8		1		—		—		(9	)
Highwoods KC Orlando, LLC 1/ 2/	40.00	%		9,433		3,703		2,257		2,413		—		1,060
Weston Lakeside, LLC	50.00	%		—		—		—		—		—		—
Total			$	41,581	$	18,177	$	10,504	$	8,994	$	724	$	3,182

1/ Highwoods’ share of Depreciation/Amortization from these tables will not equal Depreciation and Amortization ofReal Estate Assets for Unconsolidated Affiliates on the Statement of Funds from Operations due to various purchase accounting

and related adjustments, which are not reflected in the Joint Ventures’ stand-alone financial statements.

2/ Highwoods’ share of Net Income from these tables will not equal Equity in Earnings of Unconsolidated Affiliateson the Consolidated Income Statement due to various purchase accounting and related adjustments, which are not reflected

in the Joint Ventures’ stand-alone financial statements.

Highwoods Properties, Inc. Page 31 9/30/06

Joint Ventures Long-Term Debt Detail 1/

Dollars in thousands

Joint Venture	Own %		Lender	Interest Rate		Maturity Date	Loan Balance 09/30/06
Dallas County Partners I, LP	50.0	%	Massachusetts Mutual Life Ins. Co.	6.2	%	Aug-18	$	42,998
Dallas County Partners I, LP	50.0	%	Thrivent	8.5	%	Aug-10		1,633
Dallas County Partners I, LP	50.0	%	Regions	6.3	%	Jun-14		3,570
Dallas County Partners I, LP	50.0	%	Sun Life	5.9	%	Feb-16		1,085
Dallas County Partners I, LP	50.0	%	Bankers Trust	8.0	%	Jul-11		1,197
				6.3	%			50,483
Dallas County Partners II, LP	50.0	%	Principal Life Insurance Company	10.2	%	Jun-13		18,721
Fountain Three	50.0	%	Massachusetts Mutual Life Ins. Co.	6.2	%	Aug-18		17,163
Fountain Three	50.0	%	Thrivent	8.0	%	Oct-10		3,621
Fountain Three	50.0	%	Thrivent	7.3	%	Apr-09		3,429
Fountain Three	50.0	%	Lehman Brothers	8.0	%	Jul-09		3,553
Fountain Three	50.0	%	Thrivent	7.0	%	Sep-12		5,405
				6.8	%			33,171
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	1.0	%	Nov-15		23,000
RRHWoods, LLC	50.0	%	Bank of America	6.8	%	Sep-12		26,908
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	1.0	%	Sep-15		6,000
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	1.1	%	Nov-15		5,500
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	6.2	%	Aug-18		4,748
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	5.9	%	Mar-16		7,600
RRHWoods, LLC	50.0	%	Regions	6.3	%	Jun-14		3,570
				4.1	%			77,326
Plaza Colonnade, LLC	50.0	%	Met Life	5.7	%	Jan-17		49,573
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.4	%	Mar-10		1,818
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	6.0	%	Mar-16		4,394
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.9	%	Mar-24		12,283
				5.8	%			68,068
4600 Madison Associates, LLC	12.5	%	State Farm	6.9	%	Apr-18		14,642
Board of Trade Investment Company	49.0	%	KC Board of Trade Clearing Corp.	7.8	%	Sep-07		207
Highwoods DLF 98/29, LP	22.8	%	USG Annuity & Life Company	6.8	%	Apr-11		64,218
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%	Massachusetts Mutual Life Ins. Co.	7.7	%	May-12		56,926
Concourse Center Associates, LLC	50.0	%	Lincoln National Life Insurance Co.	7.0	%	Jul-10		9,180
Highwoods KC Orlando, LLC	40.0	%	Met Life	5.2	%	Jul-14		143,000
Highwoods KC Glenridge Office	40.0	%	Wachovia	4.8	%	Jun-14		16,500
Weston Lakeside, LLC	50.0	%	Wachovia	7.1	%	Jul-10		16,809
				6.2	%			321,482
				6.0	%		$	569,251
Highwoods’ Share of the above							$	241,698

1/ Excludes loans related to certain “consolidated” joint ventures

Highwoods Properties, Inc. Page 32 9/30/06

Joint Ventures Portfolio Summary

As of September 30, 2006

Summary by Location:

	Rentable Square Feet 1/	Occupancy 2/		Percentage of Annualized Revenue - Highwoods’ Share Only 3/
Market				Office		Industrial		Retail		Multi-Family		Total
Des Moines	2,399,000	93.9	%	28.4	%	4.0	%	1.0	%	3.3	%	36.7	%
Orlando	1,685,000	94.3	%	26.9	%	—		—		—		26.9	%
Atlanta	835,000	95.2	%	12.4	%	—		—		—		12.4	%
Kansas City	721,000	81.9	%	8.7	%	—		—		—		8.7	%
Richmond	413,000	100.0	%	5.0	%	—		—		—		5.0	%
Piedmont Triad	364,000	100.0	%	3.6	%	—		—		—		3.6	%
Raleigh	455,000	99.6	%	3.7	%	—		—		—		3.7	%
Tampa	205,000	100.0	%	1.7	%	—		—		—		1.7	%
Charlotte	148,000	100.0	%	0.8	%	—		—		—		0.8	%
Other	110,000	100.0	%	0.5	%	—		—		—		0.5	%
Total 4/	7,335,000	94.3	%	91.7	%	4.0	%	1.0	%	3.3	%	100.0	%

1/ Excludes Des Moines’ apartment units

2/ Excludes Des Moines’ apartment occupancy percentage of 97.4%

3/ Annualized Rental Revenue is September, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12.

4/ Includes 618,000 square feet of properties in joint ventures that are consolidated

Highwoods Properties, Inc. Page 33 9/30/06

Joint Ventures Lease Expirations

September 30, 2006

Dollars in thousands

	Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Revenue 1/		Average Rental Rate		Percent of Annualized Revenue 1/
Total
	2006	155,267	2.2	%	$	3,249	$	20.93	2.5	%
	2007	523,446	7.5	%		10,130		19.35	7.8	%
	2008	1,408,912	20.3	%		24,477		17.37	18.8	%
	2009	1,048,377	15.1	%		20,728		19.77	16.0	%
	2010	711,833	10.3	%		12,044		16.92	9.3	%
	2011	824,794	11.9	%		14,257		17.29	11.0	%
	2012	461,296	6.7	%		9,728		21.09	7.5	%
	2013	770,442	11.1	%		14,810		19.22	11.4	%
	2014	328,565	4.7	%		7,299		22.21	5.6	%
	2015	586,362	8.5	%		9,619		16.40	7.4	%
	2016 and thereafter	115,245	1.7	%		3,567		30.95	2.7	%
		6,934,539	100.0	%	$	129,908	$	18.73	100.0	%

1/ Annualized Revenue is September, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12.

Highwoods Properties, Inc. Page 34 9/30/06

Joint Ventures Development

Dollars in thousands

For Lease Office and Residential

Property	% Ownership		Market	Rentable Square Feet	Anticipated Total Investment		Investment @ 09/30/06		Pre- Leasing		Estimated Completion Date	Estimated Stabilization Date
Sonoma	50	%	Des Moines	76,000	$	9,641	$	9,350	82	%	2Q 05	4Q 06
Brickstone	50	%	Des Moines	31,000		5,149		2,607	35	%	4Q 06	4Q 07
The Vinings at University Center 1/ 2/	50	%	Charlotte	156 Units		11,300		11,328	97	%	1Q 06	3Q 06
Weston Lakeside 2/	50	%	Raleigh	332 Units		33,200		24,206	1	%	1Q 07	1Q 08
Total or Weighted Average 3/				107,000	$	59,290	$	47,491	68	%
Highwoods’ Share of the above					$	29,645	$	23,746
For Sale Residential
Property	% Ownership		Market	Rentable Square Feet	Anticipated Total Investment		Investment @ 09/30/06		Reserva- tions		Estimated Completion Date	Estimated Stabilization Date
RBC Plaza 2/ 4/ 5/	93	%	Raleigh	139 Units	$	45,570	$	—	267		4Q 08	2Q 09
Highwoods’ Share of the above					$	42,380	$	—

1/ The Vinings at University Center is currently a fifty percent owned joint venture consolidated under the provisions of FIN 46.

2/ Estimated Completion Date is the date the last unit is expected to be delivered

3/ Pre-leasing percentage does not include multi-family

4/ Highwoods will provide 93% of the anticipated equity requirement; however, its economic interest may be less due to the other Partner’s promoted interest in the project.

5/ There are currently 267 reservations for the 139 units. Reservations are fully refundable until 3Q 07 at which time binding sales contracts will be accepted and non-refundable deposits will be retained.

Highwoods Properties, Inc. Page 35 9/30/06