Highwoods Realty Limited Partnership 8-K Highwoods Properties Reports Third Quarter Results

Exhibit 99.2

Supplemental Information

September 30, 2008

Supplemental Information

Table of Contents

September 30, 2008

Schedule	Page
Summary and 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
Same Property Performance	25
Disposition Activity	26
Development Activity	27
Development Land	28
Acquisition Activity	29
Unconsolidated Joint Ventures Assets, Debt and Liabilities	30
Unconsolidated Joint Ventures Income (Three Months)	31
Unconsolidated Joint Ventures Income (Nine Months)	32
Joint Ventures Long-Term Debt Detail	33
Joint Ventures Portfolio Summary	34
Joint Ventures Lease Expirations	35
Joint Venture Acquisition and Disposition Activity	36

The information within refers to all Highwoods Properties’ wholly-owned entities, except pages 30 to 36, unless noted otherwise. Wholly-owned entities include properties classified as both continuing operations and discontinued operations.

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 other risks listed at the end of our third quarter earnings press release and detailed from time to time in the Company’s SEC reports. Highwoods assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

This supplemental also includes non-GAAP financial measures, such as Funds From Operations (FFO) and net operating income (NOI). Definitions of FFO and NOI and an explanation of management’s view of the usefulness and risks of FFO and NOI can be found toward the end of the third quarter earnings press release.

Highwoods Properties, Inc. TOC 9/30/08

Summary

Amounts in thousands, except per share amounts

	Three Months Ended
	09/30/08			06/30/08			03/31/08			12/31/07			09/30/07
Shares and units:
Common shares outstanding at end of period		63,545			57,632			57,309			57,167			57,158
Common units outstanding at end of period		3,906			3,933			3,951			4,057			4,059
Weighted average common shares outstanding - basic		58,497			56,940			56,729			56,640			56,628
Weighted average common shares outstanding - diluted		62,938			61,492			61,050			61,347			61,396
Share price:
At end of period	$	35.56		$	31.42		$	31.07		$	29.38		$	36.67
High close during period		37.94			37.38			32.34			38.26			39.01
Low close during period		29.88			31.42			26.67			28.89			32.09
Financial information:
Land sale gains, net of (impairments)	$	1,727		$	89		$	—		$	(419	)	$	(564	)
Lease termination income		436			26			1,900			840			259
Straight line rental income		967			1,892			2,404			4,048			908
Capitalized interest		2,106			2,221			2,585			2,489			2,742
Impairments on depreciable properties		—			—			—			—			(384	)
Gains on sales of depreciable properties		3,155			5,045			3,726			8,623			8,064
Funds from operations per share - diluted	$	0.71		$	0.69		$	0.71		$	0.65		$	0.59
Funds from operations per share - diluted, excluding certain items 1/	$	0.71		$	0.69		$	0.71		$	0.65		$	0.61
Wholly - owned property information:
In-Service rentable square feet:
Office		19,416			19,416			19,565			19,260			19,003
Industrial		6,049			6,299			6,036			6,036			5,942
Retail		1,342			1,343			1,314			1,317			1,318
Total		26,807			27,058			26,915			26,613			26,263
In-Service occupancy:
Office		90.3	%		90.8	%		90.4	%		91.1	%		89.7	%
Industrial		95.2	%		91.4	%		91.0	%		94.2	%		91.4	%
Retail		93.6	%		93.5	%		92.9	%		94.9	%		94.4	%
Total		91.6	%		91.1	%		90.7	%		92.0	%		90.4	%

1/ Excludes impairments on depreciable assets and preferred stock redemption/repurchase charges.

Highwoods Properties, Inc. i 9/30/08

Corporate Information

Board of Directors	Research Coverage
Thomas W. Adler	Credit Suisse - North America
Gene H. Anderson	Steven Benyik - 212-538-0239
Kay N. Callison
Edward J. Fritsch	Citigroup Global Markets
Lawrence S. Kaplan	Michael Bilerman - 212-816-1383
Sherry A. Kellett
L. Glenn Orr Jr.	Deutsche Banc Securities
O. Temple Sloan Jr., Chairman	Lou Taylor - 212-469-4912
Corporate Officers	Friedman, Billings, Ramsey & Co., Inc.
	Wilkes Graham - 703-312-9737
Edward J. Fritsch
President, Chief Executive Officer and Director	Green Street Advisors
	Cedric Lachance - 949-640-8780
Michael E. Harris
Executive Vice President and Chief Operating Officer	RW Baird
	Chris Lucas - 703-821-5780
Terry L. Stevens
Senior Vice President, Chief Financial Officer	Stifel Nicolaus
	John Guinee - 443-224-1307
Daniel L. Clemmens	Erin Aslakson - 443-224-1350
Vice President, Chief Accounting Officer
	UBS Securities
S. Hugh Esleeck	Jamie Feldman - 212-713-4932
Treasurer
	Wachovia Securities
Peter T. Jardine	Chris Haley - 443-263-6773
Vice President, Corporate Marketing
Carman J. Liuzzo
Vice President, Investments
Art H. McCann
Chief Information Officer
Jeffrey D. Miller
Vice President, General Counsel and
Secretary
Kevin E. Penn
Vice President, Strategy
Michael D. Starchville
Vice President, Asset Management
Tabitha N. Zane
Vice President, Investor Relations and
Corporate Communications

Highwoods Properties, Inc. ii 9/30/08

Corporate Information

Divisional Officers	Corporate Headquarters
	Highwoods Properties, Inc.
Atlanta/Piedmont Triad	3100 Smoketree Court, Suite 600
Gene H. Anderson - Senior Vice President	Raleigh, NC 27604
	919-872-4924
Atlanta, GA
James V. Bacchetta, Vice President	Stock Exchange
	NYSE            Trading Symbol: HIW
Piedmont Triad, NC
E. F. “Rick” Dehnert, Vice President	Investor Relations Contact
	Tabitha Zane
Orlando/Tampa	Vice President, Investor Relations and Corporate Communications
Michael F. Beale - Senior Vice President	Phone:  919-431-1529
	Fax:      919-431-1439
Orlando, FL	E-mail: tabitha.zane@highwoods.com
Michael F. Beale, Senior Vice President
	Information Request
Tampa, FL	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:
Daniel E. Woodward, Vice President
Raleigh	Phone:  919-431-1529
Raleigh, NC	Email:  HIW-IR@highwoods.com
Thomas “Skip” Hill, Vice President
	The Company
Richmond Richmond, VA Paul W. Kreckman, Vice President Nashville/Memphis/Greenville W. Brian Reames - Senior Vice President Nashville, TN 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 Glenn E. Stephenson, VP of Retail Operations	Highwoods Properties, Inc., a member of the S&P MidCap 400 Index, is a fully integrated, self-administered and self-managed equity 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, 2008, the Company owned or had an interest in 383 in-service office, industrial and retail properties encompassing approximately 34.8 million square feet. Highwoods also wholly-owned 619 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, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, and Virginia. For more information about Highwoods Properties, please visit our website at www.highwoods.com.

Highwoods Properties, Inc. iii 9/30/08

Consolidated Statements of Income

Amounts in thousands, except per share amounts

	Nine Months Ended						Three Months Ended
	09/30/08			09/30/07			09/30/08			06/30/08			03/31/08			12/31/07			09/30/07
Rental and other revenues	$	346,154		$	318,188		$	116,207		$	115,853		$	114,094		$	113,803		$	107,580
Operating expenses:
Rental property and other expenses		122,591			113,909			42,165			41,572			38,854			40,782			38,682
Depreciation and amortization		94,359			90,476			32,109			31,365			30,885			30,471			31,891
Impairment of assets held for use		—			789			—			—			—			—			789
General and administrative		29,362			31,428			8,885			10,766			9,711			10,142			9,649
Total operating expenses		246,312			236,602			83,159			83,703			79,450			81,395			81,011
Interest expenses:
Contractual		69,803			69,514			22,995			23,345			23,463			24,478			23,728
Amortization of deferred financing costs		2,038			1,791			714			686			638			624			616
Financing obligations		2,287			2,968			783			764			740			962			981
		74,128			74,273			24,492			24,795			24,841			26,064			25,325
Other income:
Interest and other income		3,425			5,094			1,019			1,604			802			1,303			1,469
		3,425			5,094			1,019			1,604			802			1,303			1,469
Income before disposition of property, insurance gain, minority interest and equity in earnings of unconsolidated affiliates		29,139			12,407			9,575			8,959			10,605			7,647			2,713
Gains on disposition of property, net		1,852			20,372			1,745			107			—			190			1,288
Gain from property insurance settlement		—			4,128			—			—			—			—			—
Minority interest		(2,313	)		(3,202	)		(813	)		(679	)		(821	)		(455	)		(262	)
Equity in earnings of unconsolidated affiliates		4,723			12,930			1,214			1,520			1,989			180			1,207
Income from continuing operations		33,401			46,635			11,721			9,907			11,773			7,562			4,946
Discontinued operations:
Income from discontinued operations, net of minority interest		811			2,646			50			374			387			417			846
Net gains on sales of discontinued operations, net of minority interest		11,125			24,533			2,940			4,702			3,483			7,479			6,175
Release of FASB FIN 48 tax liability		—			1,473			—			—			—			—			1,473
		11,936			28,652			2,990			5,076			3,870			7,896			8,494
Net income		45,337			75,287			14,711			14,983			15,643			15,458			13,440
Dividends on preferred stock		(8,127	)		(10,639	)		(2,451	)		(2,838	)		(2,838	)		(2,838	)		(2,680	)
Excess of preferred stock redemption cost over carrying value		(108	)		(2,285	)		(108	)		—			—			—			(842	)
Net income available for common stockholders	$	37,102		$	62,363		$	12,152		$	12,145		$	12,805		$	12,620		$	9,918
Net income per common share - diluted:
Income from continuing operations	$	0.43		$	0.59		$	0.16		$	0.12		$	0.15		$	0.08		$	0.02
Income from discontinued operations		0.21			0.50			0.05			0.09			0.07			0.14			0.15
Net income	$	0.64		$	1.09		$	0.21		$	0.21		$	0.22		$	0.22		$	0.17
Weighted average common shares outstanding - diluted		61,865			61,611			62,938			61,492			61,050			61,347			61,396
Dividends declared and paid per common share	$	1.275		$	1.275		$	0.425		$	0.425		$	0.425		$	0.425		$	0.425

Highwoods Properties, Inc. 1 9/30/08

Statement of Funds from Operations

and Additional Information

Amounts in thousands, except per share amounts

	Nine Months Ended						Three Months Ended
	09/30/08			09/30/07			09/30/08			06/30/08			03/31/08			12/31/07			09/30/07
Funds from operations:
Net income	$	45,337		$	75,287		$	14,711		$	14,983		$	15,643		$	15,458		$	13,440
Dividends to preferred stockholders		(8,127	)		(10,639	)		(2,451	)		(2,838	)		(2,838	)		(2,838	)		(2,680	)
Excess of preferred stock redemption cost over carrying value		(108	)		(2,285	)		(108	)		—			—			—			(842	)
Net income available for common stockholders		37,102			62,363			12,152			12,145			12,805			12,620			9,918
Add/(deduct):
Depreciation and amortization of real estate assets		92,887			88,634			31,639			30,920			30,328			29,895			31,294
(Gains) on disposition of depreciable properties		(36	)		(3,343	)		(18	)		(18	)		—			(609	)		(1,063	)
Minority interest from the Operating Partnership in income from continuing operations		1,723			2,684			612			488			623			294			92
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		9,466			8,851			3,136			3,395			2,935			4,587			3,107
(Gains) on disposition of depreciable properties		—			(7,158	)		—			—			—			—			—
Discontinued operations:
Depreciation and amortization of real estate assets		233			2,481			—			9			224			436			773
(Gains) on disposition of depreciable properties		(11,890	)		(26,847	)		(3,137	)		(5,027	)		(3,726	)		(8,014	)		(7,001	)
Release of FASB FIN 48 tax liability		—			(1,473	)		—			—			—			—			(1,473	)
Minority interest in income from discontinued operations		821			2,127			200			351			270			566			502
Funds from operations	$	130,306		$	128,319		$	44,584		$	42,263		$	43,459		$	39,775		$	36,149
Funds from operations per share - diluted
Net income available for common stockholders	$	0.64		$	1.09		$	0.21		$	0.21		$	0.22		$	0.22		$	0.17
Add/(deduct):
Depreciation and amortization of real estate assets		1.50			1.44			0.50			0.50			0.50			0.49			0.51
(Gains) on disposition of depreciable properties		—			(0.05	)		—			—			—			(0.01	)		(0.02	)
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		0.16			0.14			0.05			0.06			0.05			0.07			0.05
(Gains) on disposition of depreciable properties		—			(0.12	)		—			—			—			—			—
Discontinued operations:
Depreciation and amortization of real estate assets		—			0.04			—			—			—			0.01			0.01
(Gains) on disposition of depreciable properties		(0.19	)		(0.44	)		(0.05	)		(0.08	)		(0.06	)		(0.13	)		(0.11	)
Release of FASB FIN 48 tax liability		—			(0.02	)		—			—			—			—			(0.02	)
Funds from operations	$	2.11		$	2.08		$	0.71		$	0.69		$	0.71		$	0.65		$	0.59
Weighted average shares outstanding—diluted		61,865			61,611			62,938			61,492			61,050			61,347			61,396
Additional information: 1/
Funds from operations, excluding certain items 2/	$	130,414		$	130,988		$	44,692		$	42,263		$	43,459		$	39,775		$	37,375
Funds from operations per share, excluding certain items 2/	$	2.11		$	2.13		$	0.71		$	0.69		$	0.71		$	0.65		$	0.61
Straight line rental income	$	(5,263	)
Amortization of lease incentives		783
Depreciation of non-real estate assets		1,004
Ground lease straight line rent		127
Amortization of stock-based compensation		5,285
Amortization of deferred financing costs		2,038
Amortization of accumulated other comprehensive loss		174
Harborview non-cash FMV charge		(105	)
Non-incremental revenue generating capital expenditures paid: 3/
Building improvements		(9,580	)
2nd generation tenant improvements		(20,332	)
2nd generation lease commissions		(8,882	)
Common dividends and unit distributions paid		(78,290	)

1/ Increase or (decrease) to cash flows.

2/ Excludes impairments on depreciable assets and preferred stock redemption/repurchase charges.

3/ Excludes capital expenditures paid for buildings sold prior to September 30, 2008.

Highwoods Properties, Inc. 2 9/30/08

Consolidated Balance Sheets

Dollars in thousands

	09/30/08			12/31/07
Assets:
Real estate assets, at cost:
Land	$	360,496		$	357,841
Buildings and tenant improvements		2,824,695			2,708,989
Development in process		79,354			101,661
Land held for development		100,271			103,365
		3,364,816			3,271,856
Less-accumulated depreciation		(700,517	)		(649,765	)
Net real estate assets		2,664,299			2,622,091
Real estate and other assets, net, held for sale		8,607			10,466
Cash and cash equivalents		13,667			3,140
Restricted cash		8,940			15,896
Accounts receivable, net		23,755			23,521
Notes receivable, net		3,660			5,226
Accrued straight-line rents receivable, net		79,505			74,427
Investment in unconsolidated affiliates		68,470			58,046
Deferred financing and leasing costs, net		73,224			72,188
Prepaid expenses and other assets		40,345			41,954
Total Assets	$	2,984,472		$	2,926,955
Liabilities, Minority Interest and Stockholders’ Equity:
Mortgages and notes payable	$	1,588,954		$	1,641,987
Accounts payable, accrued expenses and other liabilities		150,862			157,766
Financing obligations		35,195			35,071
Total Liabilities		1,775,011			1,834,824
Minority interest		70,289			70,098
Stockholders’ Equity:
Preferred stock		81,592			135,437
Common stock		635			572
Additional paid-in capital		1,656,516			1,448,055
Distributions in excess of net earnings		(597,254	)		(561,093	)
Accumulated other comprehensive loss		(2,317	)		(938	)
Total Stockholders’ Equity		1,139,172			1,022,033
Total Liabilities, Minority Interest and Stockholders’ Equity	$	2,984,472		$	2,926,955

Highwoods Properties, Inc. 3 9/30/08

Estimated Net Asset Value Ranges

As Released on February 12, 2008 — See Note Below

Dollars in thousands, except per share amounts

Note: The purpose of providing the following information at the beginning of each year is to enable readers to derive their own estimate of net asset value. The Company updates this information annually based on management’s assumptions regarding estimated capitalization rates and projected current year net operating income as of the date of initial publication (current year being February 12, 2008) and will not be updated to reflect any facts, circumstances or changes in financial, operating or capitalization rate assumptions that may occur during the year. This information is not intended to be an asset-by-asset or enterprise valuation.

NOI Cap Rates:
Office		7.00	%		7.25	%		7.50	%
Retail		5.50	%		5.75	%		6.00	%
Industrial/Other		7.25	%		7.50	%		7.75	%
Consolidated Properties Projected 2008 Net Operating Income 1/ 3/
Office	$	220,168		$	220,168		$	220,168
Retail		29,634			29,634			29,634
Industrial/Other		22,176			22,176			22,176
Total	$	271,978		$	271,978		$	271,978
Consolidated Properties Capitalized Value
Office	$	3,145,257		$	3,036,800		$	2,935,573
Retail		538,800			515,374			493,900
Industrial/Other		305,876			295,680			286,142
Total	$	3,989,933		$	3,847,854		$	3,715,615
Highwoods’ Share of Unconsolidated Joint Ventures
Projected 2008 net operating income	$	30,584		$	30,584		$	30,584
Capitalization rates		7.00	%		7.25	%		7.50	%
Capitalized value	$	436,914		$	421,848		$	407,787
Total In-Service Property Value	$	4,426,847		$	4,269,702		$	4,123,402
Value of Other income
Development, leasing and management fees	$	4,773		$	4,773		$	4,773
Capitalization rate		20	%		20	%		20	%
Value of other income	$	23,867		$	23,867		$	23,867
Add Other assets:
Development pipeline investment at 135% of cost 2/	$	249,230		$	249,230		$	249,230
Assets not fairly valued by capitalized NOI valuation method 3/		204,698			204,698			204,698
Property held for sale at net sales price		10,674			10,674			10,674
Land held for development at market value		138,013			138,013			138,013
Cash and cash equivalents		3,140			3,140			3,140
Restricted cash		15,896			15,896			15,896
Accounts receivable, net		23,521			23,521			23,521
Notes receivable and prepaid expenses		47,180			47,180			47,180
Total	$	692,352		$	692,352		$	692,352
Gross Value of Assets	$	5,143,066		$	4,985,920		$	4,839,620
Deductions:
Total liabilities	$	155,779		$	155,779		$	155,779
Mortgages and notes payable		1,641,987			1,641,987			1,641,987
Market value of debt adjustment		(9,065	)		(9,065	)		(9,065	)
Minority interest adjustment 4/		41,280			41,280			41,280
Preferred stock, at liquidation value		135,437			135,437			135,437
Highwoods’ share of unconsolidated joint ventures liabilities		246,814			246,814			246,814
Estimated Net Asset Value	$	2,930,834		$	2,773,689		$	2,627,388
Estimated diluted common shares and common units for 2008		61,425			61,425			61,425
Estimated Net Asset Value Per Share	$	47.71		$	45.16		$	42.77

1/ NOI excludes straight line income, lease termination fee income, NOI related to completed not stabilized developments, and NOI related to assets undervalued by capitalized NOI method.

2/ Represents average increase in value based on projected development yields on cost compared to projected market valuations.

3/ Consolidated Properties NOI is adjusted to eliminate the net NOI for properties for which a NOI capitalization approach is not appropriate. For these assets, an alternative methodology has been applied.

4/ Represents adjustment to reflect the minority interest in the fair value of our consolidated joint ventures.

Highwoods Properties, Inc. 4 9/30/08

Components of Discontinued Operations

Dollars in thousands

	Nine Months Ended						Three Months Ended
	09/30/08			09/30/07			09/30/08			06/30/08			03/31/08			12/31/07			09/30/07
Rental and other revenues	$	1,936		$	10,147		$	70		$	674		$	1,192		$	2,005		$	3,285
Operating expenses:
Rental property and other expenses		839			4,846			17			266			556			1,143			1,610
Depreciation and amortization		233			2,481			—			9			224			436			773
General and administrative		—			—			—			—			—			—			—
Total operating expenses		1,072			7,327			17			275			780			1,579			2,383
Other income		3			23			—			1			2			22			4
Income before minority interest and gains on sales of discontinued operations		867			2,843			53			400			414			448			906
Minority interest in discontinued operations		(56	)		(197	)		(3	)		(26	)		(27	)		(31	)		(60	)
Income from discontinued operations before gains on sales of discontinued operations		811			2,646			50			374			387			417			846
Net gains on sales of discontinued operations		11,890			26,463			3,137			5,027			3,726			8,014			6,617
Minority interest in discontinued operations		(765	)		(1,930	)		(197	)		(325	)		(243	)		(535	)		(442	)
Net gains on sales of discontinued operations, net of minority interest		11,125			24,533			2,940			4,702			3,483			7,479			6,175
Net income from discontinued operations before release of FASB FIN 48 tax liability		11,936			27,179			2,990			5,076			3,870			7,896			7,021
Release of FASB FIN 48 tax liability		—			1,473			—			—			—			—			1,473
Net income from discontinued operations	$	11,936		$	28,652		$	2,990		$	5,076		$	3,870		$	7,896		$	8,494

Highwoods Properties, Inc. 5 9/30/08

Capitalization

Dollars, shares, and units in thousands

	9/30/08		6/30/08		3/31/08		12/31/07		9/30/07
Long-Term Debt (see pages 7 & 8):	$	1,588,954	$	1,732,082	$	1,703,238	$	1,641,987	$	1,601,474
Financing Obligations:	$	35,195	$	35,145	$	35,296	$	35,071	$	34,919
Preferred Stock (at liquidation value):
Series A 8 5/8% Perpetual Preferred Stock	$	29,092	$	82,937	$	82,937	$	82,937	$	82,937
Series B 8% Perpetual Preferred Stock		52,500		52,500		52,500		52,500		52,500
Total preferred stock	$	81,592	$	135,437	$	135,437	$	135,437	$	135,437
Common Shares and Units Outstanding:
Common stock outstanding		63,545		57,632		57,309		57,167		57,158
Minority interest partnership units		3,906		3,933		3,951		4,057		4,059
Total common shares and units outstanding		67,451		61,565		61,260		61,224		61,217
Stock price at period end	$	35.56	$	31.42	$	31.07	$	29.38	$	36.67
Market value of common equity	$	2,398,558	$	1,934,372	$	1,903,348	$	1,798,761	$	2,244,827
Total market capitalization with debt and obligations	$	4,104,299	$	3,837,036	$	3,777,319	$	3,611,256	$	4,016,657

See pages 30 to 36 for information regarding Highwoods’ Joint Ventures.

Highwoods Properties, Inc. 6 9/30/08

Long-Term Debt Summary

Dollars in thousands

	9/30/08			6/30/08			3/31/08			12/31/07			9/30/07
Balances Outstanding:
Secured:
Conventional fixed rate 1/	$	638,032		$	640,557		$	643,041		$	645,500		$	657,408
Variable rate debt		31,954			47,087			26,890			19,811			11,920
Secured total		669,986			687,644			669,931			665,311			669,328
Unsecured:
Fixed rate bonds and notes		648,968			648,938			648,907			748,876			748,846
Bank term loan		137,500			137,500			137,500			—			—
Credit facility		132,500			258,000			246,900			227,800			183,300
Unsecured total		918,968			1,044,438			1,033,307			976,676			932,146
Total	$	1,588,954		$	1,732,082		$	1,703,238		$	1,641,987		$	1,601,474
End of Period Weighted Average Interest Rates:
Secured:
Conventional fixed rate		6.62	%		6.61	%		6.62	%		6.62	%		6.63	%
Variable rate debt		3.94	%		4.01	%		4.34	%		6.61	%		7.02	%
Secured total		6.49	%		6.44	%		6.50	%		6.62	%		6.64	%
Unsecured:
Fixed rate bonds		6.53	%		6.53	%		6.53	%		6.61	%		6.61	%
Bank term loan		4.38	%		3.53	%		3.71	%		—			—
Credit facility		4.02	%		3.43	%		3.65	%		5.80	%		6.32	%
Unsecured total		5.85	%		5.37	%		5.47	%		6.42	%		6.56	%
Average		6.12	%		5.79	%		5.88	%		6.50	%		6.59	%

Maturity Schedule:

	Future Maturities of Debt				Total Debt 2/		Average Interest Rate
Year	Secured Debt 2/		Unsecured Debt
2008	$	—	$	—	$	—	—
2009		147,051		182,500		329,551	6.07	%
2010		9,424		—		9,424	4.06	%
2011		—		137,500		137,500	4.38	%
2012		212,428		—		212,428	6.95	%
2013		264,258		—		264,258	5.90	%
2014		36,825		—		36,825	5.79	%
2015		—		—		—	—
2016		—		—		—	—
2017		—		398,968		398,968	5.85	%
2018		—		200,000		200,000	7.50	%
Total maturities	$	669,986	$	918,968	$	1,588,954	6.12	%

Weighted average maturity = 5.3 years

1/ Includes a $22.4 million loan related to a consolidated 20% owned joint venture (Harborview) and $36.8 million in loans at September 30, 2008 related to a consolidated 50% joint venture (Markel).

2/ All periods exclude annual principal amortization.

Highwoods Properties, Inc. 7 9/30/08

Long-Term Debt Detail

Dollars in thousands

Secured Loans

Lender	Rate			Maturity Date		Loan Balance 9/30/08		Undepreciated Book Value of Assets Secured
Northwestern Mutual		7.05	%		Jan-12	$	190,000	$	301,318
Northwestern Mutual		6.03	%		Mar-13		133,854		183,134
Massachusetts Mutual Life Ins. Co. 1/		5.68	%		Dec-13		119,156		213,865
Monumental Life Ins. Co. 2/		7.77	%		Nov-09		78,632		200,232
Monumental Life Ins. Co. 2/		7.87	%		Nov-09		40,421
Metropolitan Life Ins. Co. 3/		6.06	%		Oct-12		22,428		39,066
Royal Bank of Canada 4/		3.89	%		Dec-09		22,530		34,004
Principal Life Insurance Company 5/		5.79	%		Jan-14		11,289		14,408
Principal Life Insurance Company 5/		5.79	%		Jan-14		11,289		18,781
Massachusetts Mutual Life Ins. Co. 1/		6.48	%		Dec-13		10,562
Principal Life Insurance Company 5/		5.74	%		Jan-14		8,901		14,154
Principal Life Insurance Company 5/		5.89	%		Jan-14		5,346		7,514
PNC/Regions/Union Bank of California/U.S. Bank 6/		4.06	%		Dec-10		9,424		11,644
Lutheran Brotherhood		6.75	%		Apr-09		3,591		7,989
Security Life of Denver		8.85	%		Aug-09		1,877		9,558
American United Life		9.00	%		Jun-13		686		3,344
		6.49	%				669,986	$	1,059,011
Unsecured Bonds
Bonds		5.85	%		Mar-17		398,968
Bonds		7.50	%		Apr-18		200,000
Bonds		8.13	%		Jan-09		50,000
		6.53	%				648,968
Unsecured Loans
Credit facility 4/		4.38	%		May-09		132,500
Bank term loan 4/		4.02	%		Feb-11		137,500
		4.20	%				270,000
Total Debt		6.12	%			$	1,588,954
Note: Credit facility maturity date excludes one-year extension option which management may exercise at its discretion.
Revolving Credit Facility Commitments
Name of Lender	Total Commitment			Amount Outstanding at 9/30/08		Unfunded Commitment at 9/30/08
Bank of America, N.A.	$	50,000		$	14,722	$	35,278
Branch Banking and Trust Co.		50,000			14,722		35,278
Wachovia Bank, N.A.		50,000			14,722		35,278
Wells Fargo Bank, N.A.		50,000			14,722		35,278
Emigrant Bank		35,000			10,306		24,694
Eurolypo AG, New York Branch		35,000			10,306		24,694
PNC Bank, N.A.		30,000			8,833		21,167
Regions Bank		30,000			8,833		21,167
Comerica Bank		25,000			7,361		17,639
RBC Bank		25,000			7,361		17,639
Union Bank of California, N.A.		25,000			7,361		17,639
US Bank		20,000			5,890		14,110
First Horizon Bank		15,000			4,417		10,583
Chevy Chase Bank		10,000			2,944		7,056
	$	450,000		$	132,500	$	317,500

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

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

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

4/ Floating rate loans based on one month libor.

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

6/ Floating rate loan based on three month libor.

Highwoods Properties, Inc. 8 9/30/08

Portfolio Summary - Wholly-Owned Properties Only 1/

(Rentable Square Feet)

	9/30/08		6/30/08		3/31/08		12/31/07		9/30/07
Office Industrial & Retail
In-Service:
Office 2/	19,416,000		19,416,000		19,565,000		19,260,000		19,003,000
Industrial	6,049,000		6,299,000		6,036,000		6,036,000		5,942,000
Retail 3/	1,342,000		1,343,000		1,314,000		1,317,000		1,318,000
Total 4/	26,807,000		27,058,000		26,915,000		26,613,000		26,263,000
Development Completed - Not Stabilized:
Office 2/	873,000		428,000		524,000		607,000		867,000
Industrial	418,000		418,000		681,000		681,000		681,000
Retail	—		—		—		—		—
Total	1,291,000		846,000		1,205,000		1,288,000		1,548,000
Development - In Process:
Office 2/	358,000		803,000		717,000		887,000		1,233,000
Industrial	200,000		200,000		200,000		—		120,000
Retail	—		—		—		30,000		30,000
Total	558,000		1,003,000		917,000		917,000		1,383,000
Total:
Office 2/	20,647,000		20,647,000		20,806,000		20,754,000		21,103,000
Industrial	6,667,000		6,917,000		6,917,000		6,717,000		6,743,000
Retail 3/	1,342,000		1,343,000		1,314,000		1,347,000		1,348,000
Total 4/	28,656,000		28,907,000		29,037,000		28,818,000		29,194,000
Same Property
Office 2/	18,224,000		18,224,000		18,224,000		18,224,000		18,224,000
Industrial	5,666,000		5,666,000		5,666,000		5,666,000		5,666,000
Retail	1,312,000		1,312,000		1,312,000		1,312,000		1,312,000
Total	25,202,000		25,202,000		25,202,000		25,202,000		25,202,000
Percent Leased/Pre-Leased:
In-Service:
Office	90.3	%	90.8	%	90.4	%	91.1	%	89.7	%
Industrial	95.2	%	91.4	%	91.0	%	94.2	%	91.4	%
Retail	93.6	%	93.5	%	92.9	%	94.9	%	94.4	%
Total	91.6	%	91.1	%	90.7	%	92.0	%	90.4	%
Development Completed - Not Stabilized:
Office	69.4	%	73.6	%	67.4	%	75.9	%	75.9	%
Industrial	91.0	%	72.0	%	78.2	%	78.2	%	78.2	%
Retail	—		—		—		—		—
Total	76.4	%	72.8	%	73.5	%	77.1	%	76.9	%
Development - In Process:
Office	65.7	%	63.5	%	65.7	%	59.9	%	71.2	%
Industrial	50.0	%	50.0	%	50.0	%	—		100.0	%
Retail	—		—		—		100.0	%	100.0	%
Total	60.1	%	60.8	%	62.3	%	61.2	%	74.3	%
Same Property
Office	90.2	%	90.8	%	90.5	%	91.2	%	90.2	%
Industrial	95.5	%	91.1	%	90.5	%	93.9	%	91.0	%
Retail	93.5	%	93.4	%	93.0	%	95.2	%	94.8	%
Total	91.6	%	91.0	%	90.6	%	92.0	%	90.6	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

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

3/ Excludes 428,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.

4/ Excludes minor for rent apartment buildings.

Highwoods Properties, Inc. 9 9/30/08

Portfolio Summary

(Continued)

As of September 30, 2008

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

	Rentable Square Feet		Occupancy		Percentage of Annualized Cash Revenue 2/
Market					Office		Industrial		Retail		Total
Raleigh 3/	3,711,000		89.9	%	15.6	%	—		—		15.6	%
Nashville	3,181,000		94.8	%	14.5	%	—		—		14.5	%
Atlanta	5,552,000		93.2	%	10.1	%	3.8	%	—		13.9	%
Tampa	2,419,000		92.2	%	13.8	%	—		—		13.8	%
Kansas City	1,955,000	4/	91.6	%	3.5	%	0.0	%	9.0	%	12.5	%
Piedmont Triad 5/	5,108,000		88.4	%	6.1	%	3.6	%	0.1	%	9.8	%
Richmond	2,230,000		90.0	%	8.7	%	—		—		8.7	%
Memphis	1,337,000		93.0	%	5.6	%	—		—		5.6	%
Greenville	897,000		94.4	%	3.4	%	—		—		3.4	%
Orlando	317,000		98.4	%	1.7	%	—		—		1.7	%
Other	100,000		84.3	%	0.5	%	—		—		0.5	%
Total	26,807,000		91.6	%	83.5	%	7.4	%	9.1	%	100.0	%
Summary by Location, Including Joint Venture Properties:
Market	Rentable Square Feet		Occupancy		Percentage of Annualized Cash Revenue 2/ 6/
					Office		Industrial		Retail		Multi-Family		Total
Raleigh	4,525,000		90.0	%	14.6	%	—		—		—		14.6	%
Atlanta	6,387,000		93.4	%	10.4	%	3.4	%	—		—		13.8	%
Nashville	3,181,000		94.8	%	12.8	%	—		—		—		12.8	%
Tampa	2,624,000		92.5	%	12.4	%	—		—		—		12.4	%
Kansas City	2,669,000	4/	89.6	%	4.0	%	0.0	%	8.0	%	—		12.0	%
Piedmont Triad	5,472,000		85.4	%	5.6	%	3.2	%	0.1	%	—		8.9	%
Richmond	2,643,000		91.5	%	8.2	%	—		—		—		8.2	%
Memphis	1,337,000		93.0	%	4.9	%	—		—		—		4.9	%
Orlando	2,171,000		90.7	%	4.7	%	—		—		—		4.7	%
Des Moines	2,505,000		88.5	%	3.1	%	0.5	%	0.1	%	0.4	%	4.1	%
Greenville	897,000		94.5	%	3.0	%	—		—		—		3.0	%
Other	210,000		92.5	%	0.5	%	—		—		—		0.5	%
Charlotte	148,000		100.0	%	0.1	%	—		—		—		0.1	%
Total	34,769,000		90.8	%	84.3	%	7.1	%	8.2	%	0.4	%	100.0	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Annualized Cash Revenue is September, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

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

4/ Excludes 428,000 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 Cash Revenue, see page 34.

Highwoods Properties, Inc. 10 9/30/08

Portfolio Summary - Wholly-Owned Properties Only

(Continued)

As of September 30, 2008

	Office Properties 1/					Industrial
Market	Rentable Square Feet	Occupancy		Percentage of Office Annualized Cash Revenue 2/		Rentable Square Feet	Occupancy		Percentage of Industrial Annualized Cash Revenue 2/
Raleigh	3,711,000	89.9	%	18.7	%	—	—		—
Nashville	3,181,000	94.8	%	17.4	%	—	—		—
Tampa	2,419,000	92.2	%	16.5	%	—	—		—
Atlanta	2,470,000	89.8	%	12.1	%	3,082,000	96.0	%	51.3	%
Richmond	2,230,000	90.0	%	10.4	%	—	—		—
Piedmont Triad	2,115,000	79.6	%	7.3	%	2,963,000	94.5	%	48.6	%
Memphis	1,337,000	93.0	%	6.7	%	—	—		—
Kansas City	639,000	87.9	%	4.2	%	4,000	46.5	%	0.1	%
Greenville	897,000	94.4	%	4.1	%	—	—		—
Orlando	317,000	98.4	%	2.0	%	—	—		—
Other	100,000	84.3	%	0.6	%	—	—		—
	19,416,000	90.3	%	100.0	%	6,049,000	95.2	%	100.0	%

	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Cash Revenue 2/
Kansas City 3/	1,312,000	93.5	%	98.8	%
Piedmont Triad	30,000	100.0	%	1.2	%
	1,342,000	93.6	%	100.0	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Annualized Cash Revenue is September, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

3/ Excludes 428,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.

Highwoods Properties, Inc. 11 9/30/08

Occupancy Trends - Office, Industrial and Retail Properties 1/

Market	Measurement	9/30/08		6/30/08		3/31/08		12/31/07		9/30/07
Atlanta	Rentable Square Feet	5,552,000		5,552,000		5,289,000		5,289,000		5,199,000
	Occupancy	93.2	%	92.0	%	91.6	%	93.0	%	92.8	%
	Current Properties 2/	93.4	%	92.1	%	91.5	%	92.9	%	92.8	%
Columbia	Rentable Square Feet	—		—		—		—		253,000
	Occupancy	—		—		—		—		82.5	%
	Current Properties 2/	—		—		—		—		82.5	%
Greenville	Rentable Square Feet	897,000		897,000		897,000		897,000		897,000
	Occupancy	94.4	%	91.4	%	86.4	%	85.6	%	87.7	%
	Current Properties 2/	94.4	%	91.4	%	86.4	%	85.6	%	87.6	%
Kansas City 3/	Rentable Square Feet	1,955,000		1,956,000		2,229,000		2,215,000		2,216,000
	Occupancy	91.6	%	91.3	%	88.8	%	89.4	%	89.3	%
	Current Properties 2/	91.7	%	91.5	%	90.9	%	91.9	%	92.0	%
Memphis	Rentable Square Feet	1,337,000		1,337,000		1,276,000		1,276,000		1,276,000
	Occupancy	93.0	%	93.5	%	93.8	%	94.9	%	92.5	%
	Current Properties 2/	92.6	%	93.2	%	93.8	%	94.9	%	92.5	%
Nashville	Rentable Square Feet	3,181,000		3,181,000		3,184,000		3,184,000		2,875,000
	Occupancy	94.8	%	94.9	%	95.0	%	95.1	%	92.5	%
	Current Properties 2/	94.0	%	94.2	%	94.4	%	94.7	%	92.4	%
Orlando	Rentable Square Feet	317,000		317,000		317,000		218,000		218,000
	Occupancy	98.4	%	98.4	%	96.9	%	100.0	%	99.4	%
	Current Properties 2/	97.6	%	97.6	%	95.4	%	100.0	%	99.4	%
Piedmont Triad	Rentable Square Feet	5,108,000		5,358,000		5,358,000		5,328,000		5,234,000
	Occupancy	88.4	%	85.9	%	85.2	%	89.3	%	86.1	%
	Current Properties 2/	88.0	%	84.8	%	84.0	%	88.5	%	85.3	%
Raleigh	Rentable Square Feet	3,711,000		3,711,000		3,712,000		3,554,000		3,553,000
	Occupancy	89.9	%	89.7	%	90.3	%	91.5	%	88.1	%
	Current Properties 2/	90.3	%	90.1	%	90.8	%	91.5	%	88.1	%
Richmond	Rentable Square Feet	2,230,000		2,230,000		2,135,000		2,134,000		2,024,000
	Occupancy	90.0	%	92.1	%	93.5	%	92.5	%	91.8	%
	Current Properties 2/	91.0	%	93.3	%	93.4	%	92.3	%	91.6	%
Tampa	Rentable Square Feet	2,419,000		2,419,000		2,418,000		2,418,000		2,418,000
	Occupancy	92.2	%	94.5	%	94.7	%	95.0	%	95.6	%
	Current Properties 2/	92.2	%	94.5	%	94.7	%	94.9	%	95.5	%
Total 4/	Rentable Square Feet	26,707,000		26,958,000		26,815,000		26,513,000		26,163,000
	Occupancy	91.6	%	91.1	%	90.7	%	92.0	%	90.4	%
	Current Properties 2/	91.6	%	90.9	%	90.5	%	91.9	%	90.5	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

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

3/ Excludes 428,000 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. 12 9/30/08

Leasing Statistics

Office Portfolio 1/

	Three Months Ended
	9/30/08 2/			6/30/08 3/			3/31/08 4/			12/31/07 5/			9/30/07 6/			Average
Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)		96			113			126			126			121			116
Rentable square footage leased		471,486			997,600			602,049			920,405			1,125,050			823,318
Square footage of Renewal Deals		330,751			913,530			385,756			730,702			720,127			616,173
Renewed square footage (% of total)		70.2	%		91.6	%		64.1	%		79.4	%		64.0	%		74.8	%
New Leases square footage (% of total)		29.8	%		8.4	%		35.9	%		20.6	%		36.0	%		25.2	%
Weighted average per rentable square foot over the lease term:
Base rent	$	20.84		$	22.47		$	19.82		$	19.35		$	19.32		$	20.36
Tenant improvements		(1.35	)		(1.16	)		(1.10	)		(1.64	)		(0.93	)		(1.24	)
Leasing commissions 7/		(0.51	)		(0.63	)		(0.44	)		(0.62	)		(0.51	)		(0.54	)
Rent concessions		(0.22	)		(0.28	)		(0.13	)		(0.19	)		(0.40	)		(0.24	)
Effective rent		18.76			20.40			18.15			16.90			17.48			18.34
Expense stop		(6.64	)		(7.12	)		(5.90	)		(6.05	)		(6.31	)		(6.40	)
Equivalent effective net rent	$	12.12		$	13.28		$	12.25		$	10.85		$	11.17		$	11.94
Weighted average term in years		4.5			3.2			4.0			4.4			4.6			4.1
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	3,041,354		$	5,224,995		$	3,504,078		$	7,696,269		$	6,513,821		$	5,196,103
Rentable square feet		471,486			997,600			602,049			920,405			1,125,050			823,318
Per rentable square foot	$	6.45		$	5.24		$	5.82		$	8.36		$	5.79		$	6.31
Leasing Commissions:
Total dollars committed under signed leases 7/	$	970,896		$	2,300,840		$	1,190,054		$	2,719,401		$	2,747,213		$	1,985,681
Rentable square feet		471,486			997,600			602,049			920,405			1,125,050			823,318
Per rentable square foot	$	2.06		$	2.31		$	1.98		$	2.95		$	2.44		$	2.41
Total:
Total dollars committed under signed leases	$	4,012,250		$	7,525,835		$	4,694,132		$	10,415,670		$	9,261,034		$	7,181,784
Rentable square feet		471,486			997,600			602,049			920,405			1,125,050			823,318
Per rentable square foot	$	8.51		$	7.54		$	7.80		$	11.32		$	8.23		$	8.72

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Includes 62K square feet of leases that start in 2010 or later.

3/ Includes 346K square feet of leases that start in 2010 or later.

4/ Includes 84K square feet of leases that start in 2010 or later.

5/ Includes 91K square feet of leases that start in 2010 or later.

6/ Includes 94K square feet of leases that start in 2009 or later.

7/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. 13 9/30/08

Leasing Statistics

Industrial Portfolio

	Three Months Ended
	9/30/08 1/			6/30/08			3/31/08			12/31/07			9/30/07			Average
Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)		14			14			7			10			8			11
Rentable square footage leased		358,284			367,684			158,324			694,808			115,617			338,943
Square footage of Renewal Deals		294,376			155,126			150,170			538,836			73,793			242,460
Renewed square footage (% of total)		82.2	%		42.2	%		94.8	%		77.6	%		63.8	%		71.5	%
New Leases square footage (% of total)		17.8	%		57.8	%		5.2	%		22.4	%		36.2	%		28.5	%
Weighted average per rentable square foot over the lease term:
Base rent	$	4.50		$	3.85		$	5.95		$	4.03		$	7.53		$	5.17
Tenant improvements		(0.45	)		(0.18	)		(0.07	)		(0.04	)		(0.71	)		(0.29	)
Leasing commissions 2/		(0.09	)		(0.10	)		0.00			(0.05	)		(0.14	)		(0.08	)
Rent concessions		(0.01	)		0.00			0.00			0.00			(0.10	)		(0.02	)
Effective rent		3.95			3.57			5.88			3.94			6.58			4.78
Expense stop		(0.05	)		(0.19	)		(0.10	)		(0.05	)		(1.04	)		(0.29	)
Equivalent effective net rent	$	3.90		$	3.38		$	5.78		$	3.89		$	5.54		$	4.49
Weighted average term in years		3.0			1.8			3.3			2.6			4.3			3.0
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	385,175		$	269,635		$	50,537		$	40,925		$	424,840		$	234,222
Rentable square feet		358,284			367,684			158,324			694,808			115,617			338,943
Per rentable square foot	$	1.08		$	0.73		$	0.32		$	0.06		$	3.67		$	0.69
Leasing Commissions:
Total dollars committed under signed leases 2/	$	142,626		$	62,837		$	1,918		$	136,633		$	74,106		$	83,624
Rentable square feet		358,284			367,684			158,324			694,808			115,617			338,943
Per rentable square foot	$	0.40		$	0.17		$	0.01		$	0.20		$	0.64		$	0.25
Total:
Total dollars committed under signed leases	$	527,801		$	332,471		$	52,455		$	177,558		$	498,945		$	317,846
Rentable square feet		358,284			367,684			158,324			694,808			115,617			338,943
Per rentable square foot	$	1.47		$	0.90		$	0.33		$	0.26		$	4.32		$	0.94

1/ Includes 256K square feet of leases that start in 2010 or later.

2/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. 14 9/30/08

Leasing Statistics

Retail Portfolio

	Three Months Ended
	9/30/08			6/30/08 1/			3/31/08			12/31/07 2/			9/30/07			Average
Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)		3			6			7			12			8			7
Rentable square footage leased		7,719			15,839			30,942			44,509			24,629			24,728
Square footage of Renewal Deals		2,898			14,162			18,826			37,318			18,097			18,260
Renewed square footage (% of total)		37.5	%		89.4	%		60.8	%		83.8	%		73.5	%		73.8	%
New Leases square footage (% of total)		62.5	%		10.6	%		39.2	%		16.2	%		26.5	%		26.2	%
Weighted average per rentable square foot over the lease term:
Base rent	$	25.81		$	27.61		$	31.80		$	20.44		$	24.06		$	25.94
Tenant improvements		0.00			(1.52	)		(0.40	)		(1.46	)		(1.17	)		(0.91	)
Leasing commissions 3/		(0.15	)		(0.67	)		(0.54	)		(0.26	)		(0.46	)		(0.42	)
Rent concessions		0.00			0.00			(1.47	)		0.00			0.00			(0.29	)
Effective rent		25.66			25.42			29.39			18.72			22.43			24.32
Expense stop		0.00			0.00			0.00			0.00			0.00			0.00
Equivalent effective net rent	$	25.66		$	25.42		$	29.39		$	18.72		$	22.43		$	24.32
Weighted average term in years		8.6			7.7			8.6			5.6			6.1			7.3
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	—		$	177,176		$	161,500		$	509,473		$	260,407		$	221,711
Rentable square feet		7,719			15,839			30,942			44,509			24,629			24,728
Per rentable square foot	$	—		$	11.19		$	5.22		$	11.45		$	10.57		$	8.97
Leasing Commissions:
Total dollars committed under signed leases 3/	$	1,165		$	5,794		$	123,220		$	21,542		$	17,601		$	33,864
Rentable square feet		7,719			15,839			30,942			44,509			24,629			24,728
Per rentable square foot	$	0.15		$	0.37		$	3.98		$	0.48		$	0.71		$	1.37
Total:
Total dollars committed under signed leases	$	1,165		$	182,970		$	284,720		$	531,015		$	278,008		$	255,575
Rentable square feet		7,719			15,839			30,942			44,509			24,629			24,728
Per rentable square foot	$	0.15		$	11.55		$	9.20		$	11.93		$	11.29		$	10.34

1/ Includes 3K square feet of leases that start in 2010 or later.

2/ Includes 9K square feet of leases that start in 2010 or later.

3/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. 15 9/30/08

Leasing Statistics by Market

For the Three Months Ended As of 9/30/08

Office Portfolio 1/

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Raleigh	118,037	5.7	$	20.56	$	3.41	$	0.97
Nashville	101,233	4.7		21.29		5.87		2.90
Memphis	87,202	2.9		21.27		5.36		1.30
Richmond	59,683	4.2		18.78		10.83		1.39
Atlanta	34,613	5.3		18.48		18.37		4.86
Tampa	32,154	3.7		24.92		5.91		0.82
Greenville	16,850	5.0		18.40		0.00		3.68
Kansas City	10,973	3.8		23.90		4.96		4.24
Piedmont Triad	10,741	2.6		14.09		4.65		1.35
	471,486	4.5	$	20.62	$	6.45	$	2.06
Industrial Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Atlanta	287,322	3.4	$	4.75	$	1.16	$	0.47
Piedmont Triad	70,962	1.1		3.43		0.74		0.07
	358,284	3.0	$	4.49	$	1.08	$	0.40
Retail Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Kansas City	7,719	8.6	$	25.81	$	—	$	0.15
	7,719	8.6	$	25.81	$	—	$	0.15

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Lease commissions by market per square foot excludes capitalized internal leasing costs.

3/ The amount of capitalized internal leasing cost not allocated to individual deals or product types was $498K.

Highwoods Properties, Inc. 16 9/30/08

Rental Rate Comparisons by Market

For the Three Months Ended As of 9/30/08

Office Portfolio 1/

Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Raleigh	118,037	$	20.56	$	19.62	4.8	%
Nashville	101,233		21.29		19.41	9.7	%
Memphis	87,202		21.27		20.01	6.3	%
Richmond	59,683		18.78		18.34	2.4	%
Atlanta	34,613		18.48		15.24	21.3	%
Tampa	32,154		24.92		20.31	22.7	%
Greenville	16,850		18.40		17.82	3.3	%
Kansas City	10,973		23.90		23.27	2.7	%
Piedmont Triad	10,741		14.09		13.59	3.7	%
GAAP Rent Growth	471,486	$	20.62	$	19.07	8.1	%
Cash Rent Growth	471,486	$	19.98	$	20.57	-2.8	%
Industrial Portfolio
Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Atlanta	287,322	$	4.75	$	4.34	9.5	%
Piedmont Triad	70,962		3.43		3.62	-5.2	%
GAAP Rent Growth	358,284	$	4.49	$	4.20	7.0	%
Cash Rent Growth	358,284	$	4.41	$	4.51	-2.3	%
Retail Portfolio
Market	Rentable Square Feet Leased	Current Rent		Previous Rent 2/		Percentage Change Rent
Kansas City	7,719	$	25.81	$	32.65	-20.9	%
GAAP Rent Growth	7,719	$	25.81	$	32.65	-20.9	%
Cash Rent Growth	7,719	$	24.74	$	34.20	-27.7	%

Average Cash Rental Rates for All In Place Leases at: 1/ 3/

Type	9/30/08			9/30/07			9/30/06			9/30/05			9/30/04
Office	$	20.05		$	19.32		$	18.32		$	17.76		$	17.64
Industrial		5.27			5.20			5.06			4.98			4.69
Retail 2/		31.22			30.97			28.14			27.36			26.01
Weighted average rate	$	17.06		$	16.56		$	15.60		$	15.27		$	14.80
Annual % growth rate		3.0	%		6.2	%		2.2	%		3.2	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Excludes percentage rent.

3/ Average cash rental rates represent September, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12 and divided by the related leased square feet.

Highwoods Properties, Inc. 17 9/30/08

Lease Expirations

September 30, 2008

Dollars in thousands

Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Cash Revenue 1/		Average Rental Rate		Percent of Annualized Cash Revenue 1/
Office: 2/
2008 /3	289,287	1.6	%	$	5,941	$	20.54	1.7	%
2009	2,236,408	12.5	%		45,455		20.33	12.6	%
2010	2,188,549	12.2	%		46,018		21.03	12.8	%
2011	2,636,341	14.6	%		51,623		19.58	14.4	%
2012	2,321,380	12.9	%		48,588		20.93	13.5	%
2013	2,313,012	12.9	%		45,268		19.57	12.6	%
2014	1,595,376	8.9	%		32,486		20.36	9.0	%
2015	1,110,044	6.2	%		22,332		20.12	6.2	%
2016	763,340	4.3	%		14,255		18.67	4.0	%
2017	980,329	5.5	%		18,757		19.13	5.2	%
2018 and thereafter	1,508,474	8.4	%		28,939		19.18	8.0	%
	17,942,540	100.0	%	$	359,662	$	20.05	100.0	%
Industrial:
2008 /4	174,189	2.9	%	$	997	$	5.72	3.1	%
2009	1,370,123	22.5	%		7,170		5.23	22.4	%
2010	846,166	14.0	%		4,365		5.16	13.6	%
2011	729,047	12.0	%		3,849		5.28	12.1	%
2012	454,550	7.5	%		2,767		6.09	8.7	%
2013	621,178	10.2	%		3,753		6.04	11.8	%
2014	478,703	7.9	%		2,577		5.38	8.1	%
2015	271,382	4.5	%		1,124		4.14	3.5	%
2016	264,597	4.4	%		1,040		3.93	3.3	%
2017	149,600	2.5	%		737		4.93	2.3	%
2018 and thereafter	701,324	11.6	%		3,546		5.06	11.1	%
	6,060,859	100.0	%	$	31,925	$	5.27	100.0	%

1/ Annualized Cash Revenue is September, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

3/ Includes 81,000 square feet of leases that are on a month to month basis or 0.5% of total annualized revenue.

4/ Includes 96,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

Note: 2008 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Highwoods Properties, Inc. 18 9/30/08

Lease Expirations

September 30, 2008

(Continued)

Dollars in thousands

Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Cash Revenue 1/		Average Rental Rate		Percent of Annualized Cash Revenue 1/
Retail:
2008 2/	54,715	4.4	%	$	884	$	16.16	2.3	%
2009	140,960	11.2	%		4,388		31.13	11.2	%
2010	86,575	6.9	%		3,390		39.16	8.6	%
2011	57,811	4.6	%		1,955		33.82	5.0	%
2012	165,979	13.2	%		5,191		31.28	13.2	%
2013	74,113	5.9	%		2,833		38.23	7.2	%
2014	104,690	8.3	%		2,570		24.55	6.5	%
2015	144,364	11.5	%		4,651		32.22	11.9	%
2016	63,866	5.1	%		2,634		41.24	6.7	%
2017	107,946	8.6	%		2,725		25.24	6.9	%
2018 and thereafter	255,786	20.3	%		8,022		31.36	20.5	%
	1,256,805	100.0	%	$	39,243	$	31.22	100.0	%
Total:
2008 3/ 4/	518,191	2.1	%	$	7,822	$	15.09	1.8	%
2009	3,747,491	14.8	%		57,013		15.21	13.2	%
2010	3,121,290	12.4	%		53,773		17.23	12.5	%
2011	3,423,199	13.6	%		57,427		16.78	13.4	%
2012	2,941,909	11.6	%		56,546		19.22	13.1	%
2013	3,008,303	11.9	%		51,854		17.24	12.0	%
2014	2,178,769	8.6	%		37,633		17.27	8.7	%
2015	1,525,790	6.0	%		28,107		18.42	6.5	%
2016	1,091,803	4.3	%		17,929		16.42	4.2	%
2017	1,237,875	4.9	%		22,219		17.95	5.2	%
2018 and thereafter	2,465,584	9.8	%		40,507		16.43	9.4	%
	25,260,204	100.0	%	$	430,830	$	17.06	100.0	%

1/ Annualized Cash Revenue is September, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/ Includes 21,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

3/ Includes 198,000 square feet of leases that are on a month to month basis or 0.7% of total annualized revenue.

4/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

Note: 2008 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Highwoods Properties, Inc. 19 9/30/08

Office Lease Expirations by Market by Quarter 1/

Dollars in thousands

		Three Months Ended												Total
		12/31/08 2/			3/31/09			6/30/09			9/30/09
Atlanta	RSF		61,582			14,383			64,921			167,806			308,692
	% of Total Office RSF		0.3	%		0.1	%		0.4	%		0.9	%		1.7	%
	Annualized Cash Revenue            3/	$	932		$	302		$	936		$	3,016		$	5,186
	% of Total Office Annl Cash Rev		0.3	%		0.1	%		0.3	%		0.8	%		1.4	%
Greenville	RSF		120			19,998			29,135			0			49,253
	% of Total Office RSF		0.0	%		0.1	%		0.2	%		0.0	%		0.3	%
	Annualized Cash Revenue            3/	$	2		$	333		$	492		$	—		$	827
	% of Total Office Annl Cash Rev		0.0	%		0.1	%		0.1	%		0.0	%		0.2	%
Kansas City	RSF		4,375			16,833			7,805			9,499			38,512
	% of Total Office RSF		0.0	%		0.1	%		0.0	%		0.1	%		0.2	%
	Annualized Cash Revenue            3/	$	137		$	408		$	192		$	224		$	961
	% of Total Office Annl Cash Rev		0.0	%		0.1	%		0.1	%		0.1	%		0.3	%
Memphis	RSF		28,917			45,939			26,133			37,557			138,546
	% of Total Office RSF		0.2	%		0.3	%		0.1	%		0.2	%		0.8	%
	Annualized Cash Revenue            3/	$	648		$	1,076		$	528		$	713		$	2,965
	% of Total Office Annl Cash Rev		0.2	%		0.3	%		0.1	%		0.2	%		0.8	%
Nashville	RSF		29,028			101,069			71,279			264,443			465,819
	% of Total Office RSF		0.2	%		0.6	%		0.4	%		1.5	%		2.6	%
	Annualized Cash Revenue            3/	$	658		$	1,941		$	1,350		$	5,795		$	9,744
	% of Total Office Annl Cash Rev		0.2	%		0.5	%		0.4	%		1.6	%		2.7	%
Orlando	RSF		0			0			11,482			0			11,482
	% of Total Office RSF		0.0	%		0.0	%		0.1	%		0.0	%		0.1	%
	Annualized Cash Revenue            3/	$	—		$	—		$	274		$	—		$	274
	% of Total Office Annl Cash Rev		0.0	%		0.0	%		0.1	%		0.0	%		0.1	%
Piedmont Triad	RSF		17,138			24,204			31,062			69,986			142,390
	% of Total Office RSF		0.1	%		0.1	%		0.2	%		0.4	%		0.8	%
	Annualized Cash Revenue            3/	$	305		$	478		$	536		$	1,057		$	2,376
	% of Total Office Annl Cash Rev		0.1	%		0.1	%		0.1	%		0.3	%		0.7	%
Raleigh	RSF		102,647			223,841			20,991			100,819			448,298
	% of Total Office RSF		0.5	%		1.2	%		0.1	%		0.6	%		2.4	%
	Annualized Cash Revenue            3/	$	2,266		$	4,599		$	495		$	2,054		$	9,414
	% of Total Office Annl Cash Rev		0.6	%		1.3	%		0.1	%		0.6	%		2.6	%
Richmond	RSF		30,806			101,663			38,586			49,276			220,331
	% of Total Office RSF		0.2	%		0.6	%		0.2	%		0.3	%		1.2	%
	Annualized Cash Revenue            3/	$	572		$	2,091		$	714		$	933		$	4,310
	% of Total Office Annl Cash Rev		0.2	%		0.6	%		0.2	%		0.3	%		1.2	%
Tampa	RSF		13,579			108,499			54,683			11,024			187,785
	% of Total Office RSF		0.1	%		0.6	%		0.3	%		0.1	%		1.0	%
	Annualized Cash Revenue            3/	$	391		$	2,543		$	1,232		$	272		$	4,438
	% of Total Office Annl Cash Rev		0.1	%		0.7	%		0.3	%		0.1	%		1.2	%
Other	RSF		1,095			6,166			0			619			7,880
	% of Total Office RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Cash Revenue            3/	$	31		$	121		$	—		$	11		$	163
	% of Total Office Annl Cash Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Total	RSF		289,287			662,595			356,077			711,029			2,018,988
	% of Total Office RSF		1.6	%		3.7	%		2.0	%		4.0	%		11.2	%
	Annualized Cash Revenue            3/	$	5,942		$	13,892		$	6,749		$	14,075		$	40,658
	% of Total Office Annl Cash Rev		1.7	%		3.9	%		1.9	%		3.9	%		11.3	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Includes 81,000 square feet of leases that are on a month to month basis or 0.5% of total annualized revenue.

3/ Annualized Cash Revenue is September, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 20 9/30/08

Industrial Lease Expirations by Market by Quarter

Dollars in thousands

		Three Months Ended												Total
		12/31/08 1/			3/31/09			6/30/09			9/30/09
Atlanta	RSF		33,465			119,612			34,300			108,791			296,168
	% of Total Industrial RSF		0.6	%		2.0	%		0.6	%		1.8	%		4.9	%
	Annualized Cash Revenue            2/	$	229		$	766		$	215		$	847		$	2,057
	% of Total Industrial Annl Cash Rev		0.8	%		2.4	%		0.7	%		2.7	%		6.5	%
Kansas City	RSF		0			1,756			0			0			1,756
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Cash Revenue            2/	$	—		$	20		$	—		$	—		$	20
	% of Total Industrial Annl Cash Rev		0.0	%		0.1	%		0.0	%		0.0	%		0.1	%
Piedmont Triad	RSF		140,724			429,378			579,320			2,460			1,151,882
	% of Total Industrial RSF		2.3	%		7.1	%		9.6	%		0.0	%		19.0	%
	Annualized Cash Revenue            2/	$	769		$	2,057		$	2,548		$	24		$	5,398
	% of Total Industrial Annl Cash Rev		2.4	%		6.4	%		8.0	%		0.1	%		16.9	%
Total	RSF		174,189			550,746			613,620			111,251			1,449,806
	% of Total Industrial RSF		2.9	%		9.1	%		10.1	%		1.8	%		23.9	%
	Annualized Cash Revenue            2/	$	998		$	2,843		$	2,763		$	871		$	7,475
	% of Total Industrial Annl Cash Rev		3.2	%		8.9	%		8.7	%		2.7	%		23.5	%

1/ Includes 96,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

2/ Annualized Cash Revenue is September, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 21 9/30/08

Office Lease Expirations by Market by Year 1/

Dollars in thousands

		2008 2/			2009			2010			2011			Thereafter
Atlanta	RSF		61,582			258,252			92,676			295,238			1,511,574
	% of Total Office RSF		0.3	%		1.4	%		0.5	%		1.6	%		8.4	%
	Annualized Cash Revenue            3/	$	932		$	4,459		$	1,769		$	6,473		$	29,989
	% of Total Office Annl Cash Rev		0.3	%		1.2	%		0.5	%		1.8	%		8.3	%
Greenville	RSF		120			60,122			57,236			104,244			625,827
	% of Total Office RSF		0.0	%		0.3	%		0.3	%		0.6	%		3.5	%
	Annualized Cash Revenue            3/	$	2		$	1,027		$	971		$	1,902		$	10,814
	% of Total Office Annl Cash Rev		0.0	%		0.3	%		0.3	%		0.5	%		3.0	%
Kansas City	RSF		4,375			44,124			104,158			77,286			332,385
	% of Total Office RSF		0.0	%		0.2	%		0.6	%		0.4	%		1.9	%
	Annualized Cash Revenue            3/	$	137		$	1,066		$	3,066		$	2,016		$	8,740
	% of Total Office Annl Cash Rev		0.0	%		0.3	%		0.9	%		0.6	%		2.4	%
Memphis	RSF		28,917			179,488			188,838			147,775			698,649
	% of Total Office RSF		0.2	%		1.0	%		1.1	%		0.8	%		3.9	%
	Annualized Cash Revenue            3/	$	648		$	3,682		$	3,998		$	3,037		$	12,653
	% of Total Office Annl Cash Rev		0.2	%		1.0	%		1.1	%		0.8	%		3.5	%
Nashville	RSF		29,028			530,726			450,240			397,761			1,615,841
	% of Total Office RSF		0.2	%		3.0	%		2.5	%		2.2	%		9.0	%
	Annualized Cash Revenue            3/	$	658		$	10,929		$	9,254		$	8,049		$	33,515
	% of Total Office Annl Cash Rev		0.2	%		3.0	%		2.6	%		2.2	%		9.3	%
Orlando	RSF		0			16,215			77,080			106,313			111,676
	% of Total Office RSF		0.0	%		0.1	%		0.4	%		0.6	%		0.6	%
	Annualized Cash Revenue            3/	$	—		$	400		$	1,802		$	2,332		$	2,624
	% of Total Office Annl Cash Rev		0.0	%		0.1	%		0.5	%		0.6	%		0.7	%
Piedmont Triad	RSF		17,138			136,731			233,929			428,183			867,773
	% of Total Office RSF		0.1	%		0.8	%		1.3	%		2.4	%		4.8	%
	Annualized Cash Revenue            3/	$	305		$	2,266		$	3,792		$	6,294		$	13,496
	% of Total Office Annl Cash Rev		0.1	%		0.6	%		1.1	%		1.7	%		3.8	%
Raleigh	RSF		102,647			532,283			389,667			560,008			1,973,034
	% of Total Office RSF		0.6	%		3.0	%		2.2	%		3.1	%		11.0	%
	Annualized Cash Revenue            3/	$	2,265		$	11,295		$	7,641		$	11,290		$	35,123
	% of Total Office Annl Cash Rev		0.6	%		3.1	%		2.1	%		3.1	%		9.8	%
Richmond	RSF		30,806			215,577			251,584			426,833			1,081,450
	% of Total Office RSF		0.2	%		1.2	%		1.4	%		2.4	%		6.0	%
	Annualized Cash Revenue            3/	$	572		$	4,246		$	4,803		$	8,051		$	19,614
	% of Total Office Annl Cash Rev		0.2	%		1.2	%		1.3	%		2.2	%		5.5	%
Tampa	RSF		13,579			256,105			310,871			91,120			1,731,287
	% of Total Office RSF		0.1	%		1.4	%		1.7	%		0.5	%		9.6	%
	Annualized Cash Revenue            3/	$	391		$	5,954		$	8,087		$	2,122		$	42,854
	% of Total Office Annl Cash Rev		0.1	%		1.7	%		2.2	%		0.6	%		11.9	%
Other	RSF		1,095			6,785			32,270			1,580			42,459
	% of Total Office RSF		0.0	%		0.0	%		0.2	%		0.0	%		0.2	%
	Annualized Cash Revenue            3/	$	31		$	132		$	833		$	56		$	1,202
	% of Total Office Annl Cash Rev		0.0	%		0.0	%		0.2	%		0.0	%		0.3	%
Total	RSF		289,287			2,236,408			2,188,549			2,636,341			10,591,955
	% of Total Office RSF		1.6	%		12.5	%		12.2	%		14.7	%		59.0	%
	Annualized Cash Revenue            3/	$	5,941		$	45,456		$	46,016		$	51,622		$	210,624
	% of Total Office Annl Cash Rev		1.7	%		12.6	%		12.8	%		14.4	%		58.6	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Includes 81,000 square feet of leases that are on a month to month basis or 0.5% of total annualized revenue.

3/ Annualized Cash Revenue is September, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 22 9/30/08

Industrial Lease Expirations by Market by Year

Dollars in thousands

		2008 1/			2009			2010			2011			Thereafter
Atlanta	RSF		33,465			321,303			335,043			575,416			1,692,412
	% of Total Industrial RSF		0.6	%		5.3	%		5.5	%		9.5	%		27.9	%
	Annualized Cash Revenue            2/	$	228		$	2,170		$	1,869		$	3,145		$	8,971
	% of Total Industrial Annl Cash Rev		0.7	%		6.8	%		5.9	%		9.9	%		28.1	%
Kansas City	RSF		0			1,756			0			0			0
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Cash Revenue            2/	$	—		$	20		$	—		$	—		$	—
	% of Total Industrial Annl Cash Rev		0.0	%		0.1	%		0.0	%		0.0	%		0.0	%
Piedmont Triad	RSF		140,724			1,047,064			511,123			153,631			1,248,922
	% of Total Industrial RSF		2.3	%		17.3	%		8.4	%		2.5	%		20.6	%
	Annualized Cash Revenue            2/	$	769		$	4,981		$	2,496		$	704		$	6,572
	% of Total Industrial Annl Cash Rev		2.4	%		15.6	%		7.8	%		2.2	%		20.6	%
Total	RSF		174,189			1,370,123			846,166			729,047			2,941,334
	% of Total Industrial RSF		2.9	%		22.6	%		14.0	%		12.0	%		48.5	%
	Annualized Cash Revenue            2/	$	997		$	7,171		$	4,365		$	3,849		$	15,543
	% of Total Industrial Annl Cash Rev		3.1	%		22.5	%		13.7	%		12.1	%		48.7	%

1/ Includes 96,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

2/ Annualized Cash Revenue is September, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 23 9/30/08

Customer Diversification 1/

September 30, 2008

Dollars in thousands

Top 20 Customers

Customer	RSF	Annualized Cash Revenue 2/		Percent of Annualized Cash Revenue 2/		Average Remaining Lease Term in Years
Federal Government	1,657,277	$	32,746	7.60	%	7.9
AT&T	896,147		15,013	3.48	%	3.6
Price Waterhouse Coopers	369,649		9,969	2.31	%	3.1
State of Georgia	367,986		7,862	1.82	%	2.1
Healthways	282,132		6,260	1.45	%	13.6
T-Mobile USA	207,517		5,722	1.33	%	5.2
Metropolitan Life Insurance	267,787		5,401	1.25	%	9.2
Lockton Companies	160,561		4,402	1.02	%	6.4
BB&T	258,363		4,199	0.97	%	4.4
Syniverse Technologies	198,750		3,949	0.92	%	8.1
Fluor Enterprises	209,474		3,737	0.87	%	3.4
SCI Services 3/	162,784		3,668	0.85	%	8.8
RBC Bank	169,843		3,379	0.78	%	18.4
Wachovia	127,138		2,978	0.69	%	2.4
Jacobs Engineering Group	181,794		2,858	0.66	%	7.0
Vanderbilt University	144,161		2,843	0.66	%	7.0
Lifepoint Corporate Services	129,217		2,632	0.61	%	2.8
Icon Clinical Research	110,909		2,574	0.60	%	5.0
Talecris Biotherapeutics	122,870		2,409	0.56	%	3.8
HCA Physician Services	130,599		2,299	0.53	%	5.3
	6,154,958	$	124,900	28.96	%	6.4

By Industry

Category	Percent of Annualized Cash Revenue 2/
Professional, Scientific, and Technical Services	20.5	%
Government/Public Administration	10.1	%
Finance/Banking	9.5	%
Insurance	8.9	%
Retail Trade	7.3	%
Manufacturing	6.6	%
Telecommunication	6.3	%
Wholesale Trade	6.2	%
Health Care and Social Assistance	6.1	%
Real Estate Rental and Leasing	4.0	%
Information	3.0	%
Administrative and Support Services	2.9	%
Accommodation and Food Services	2.6	%
Transportation and Warehousing	2.2	%
Other Services (except Public Administration)	2.1	%
Educational Services	1.7	%
	100.0	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Annualized Cash Revenue is September, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

3/ SCI Services (Saxon Capital, Inc.) is a wholly owned subsidiary of Morgan Stanley.

Highwoods Properties, Inc. 24 9/30/08

Same Property Performance

Dollars and Square Feet in thousands

	Three months ended September 30,						Percentage Change
	2008			2007
Rental revenues 1/	$	102,103		$	99,537		2.6	%
Operating expenses		(38,896	)		(36,934	)	-5.3	%
		63,207			62,603		1.0	%
Straight line rent		(936	)		42		-2328.6	%
		62,271			62,645		-0.6	%
Lease termination fees		436			251		73.7	%
Net operating income	$	62,707		$	62,896		-0.3	%
Average occupancy		91.7	%		90.5	%	1.3	%
Rentable square feet		25,202			25,202
	Nine months ended September 30,						Percentage Change
	2008			2007
Rental revenues 1/	$	303,602		$	293,953		3.3	%
Operating expenses		(113,084	)		(108,653	)	-4.1	%
		190,518			185,300		2.8	%
Straight line rent		(313	)		790		-139.6	%
		190,205			186,090		2.2	%
Lease termination fees		2,359			1,766		33.6	%
Net operating income	$	192,564		$	187,856		2.5	%
Average occupancy		91.1	%		90.4	%	0.8	%
Rentable square feet		25,202			25,202

	Third Quarter: 2008 vs 2007				September YTD: 2008 vs 2007
Market	NOI 2/ Percentage Change		Occupancy Percentage Change		NOI 2/ Percentage Change		Occupancy Percentage Change
Atlanta	-9.4	%	0.4	%	-5.4	%	-0.2	%
Greenville	10.1	%	8.5	%	11.1	%	5.9	%
Kansas City	-2.9	%	-0.1	%	-2.5	%	-0.9	%
Memphis	3.7	%	-0.1	%	4.9	%	0.9	%
Nashville	5.5	%	2.4	%	8.5	%	3.2	%
Orlando	2.2	%	-1.1	%	-3.0	%	-1.7	%
Piedmont Triad	-10.0	%	2.4	%	-3.4	%	-1.1	%
Raleigh	9.6	%	2.8	%	8.9	%	4.0	%
Richmond	-4.3	%	1.5	%	3.9	%	3.1	%
Tampa	-3.7	%	-2.5	%	2.6	%	-2.9	%
	-0.6	%	1.3	%	2.2	%	0.8	%

1/ Excludes straight line rents and lease termination fees.

2/ Includes straight line rents and excludes lease termination fees.

Highwoods Properties, Inc. 25 9/30/08

Disposition Activity

Dollars in thousands

Name	Market	Type 1/	Date Sold	Square Footage	Occupancy		Gross Sales Price
First quarter 2008:
Parkway Medical	Kansas City	O	02/15/08	30,000	81.4	%	$	6,050
First quarter totals				30,000	81.4	%	$	6,050
Second quarter 2008:
Fairway North & West	Kansas City	O	04/02/08	130,000	74.6	%	$	11,676
Corinth Office	Kansas City	O	06/20/08	141,000	75.3	%		9,950
Second quarter totals				271,000	74.9	%	$	21,626
Third quarter 2008:
Chesapeake	Winston-Salem	I	07/20/08	250,000	100.0	%	$	8,150
Third quarter totals				250,000	100.0	%	$	8,150
2008 totals				551,000	86.7	%	$	35,826

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

Highwoods Properties, Inc. 26 9/30/08

Development Activity

Dollars in thousands

Property In - Process	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 09/30/08			Pre Leased %	Estimated Completion Date	Estimated Stabilization Date
Office:
FAA	Atlanta	O	100,000	$	18,071	$	5,991		100%	2Q 09	2Q 09
Jackson FBI	Jackson, MS	O	110,000		31,713		11,644		100%	1Q 09	1Q 09
Triad Centre III	Memphis	O	148,000		29,187		7,493		17%	3Q 09	2Q 11
Total or Weighted Average			358,000	$	78,971	$	25,128		66%
						$	Weighted	%	69%
For Sale Development:
RBC Plaza Condominiums 3/ 4/ 5/	Raleigh	RC	139 Units	$	42,380	$	34,004		138 Contracts	4Q 08	2Q 09
				$	42,380	$	34,004
Industrial:
River Point IV	Atlanta	I	200,000	$	10,435	$	5,108		50%	1Q 09	2Q 10
			200,000	$	10,435	$	5,108		50%
In-Process Total or Weighted Average 4/			558,000	$	131,786	$	64,240		60%
						$	Weighted	%	67%
Completed Not Stabilized 6/
Office:
Cool Springs IV	Nashville	O	153,000	$	27,597	$	20,268		8%	3Q 08	1Q 10
Centregreen V	Raleigh	O	98,000		15,662		13,131		75%	1Q 08	3Q 09
Glenlake VI	Raleigh	O	122,000		24,448		21,996		57%	1Q 08	3Q 09
RBC Plaza 2/	Raleigh	O	292,000		76,056		62,868		93%	3Q 08	4Q 09
Highwoods Baycenter I	Tampa	O	208,000		43,100		42,180		86%	3Q 07	4Q 08
Total or Weighted Average			873,000	$	186,863	$	160,443		69%
						$	Weighted	%	73%
Industrial:
Enterprise II	Piedmont Triad	I	418,000	$	17,222	$	15,893		91%	4Q 06	4Q 08
			418,000	$	17,222	$	15,893		91%
						$	Weighted	%	91%
Completed Not Stabilized Total or Weighted Average			1,291,000	$	204,085	$	176,336		76%
						$	Weighted	%	74%
Grand Total or Weighted Average			1,849,000	$	335,871	$	240,576		71%
						$	Weighted	%	72%

1/ The Letters “O”, “I” and “RC” represent: Office, Industrial and For Sale Residential Condominiums, respectively.

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

3/ In January 2007 the Company executed a Joint Venture agreement for this development. The Company has a 93% interest and consolidates this Joint Venture.

The investment amounts shown represent the Company’s 93% share.

4/ Condo units and numbers are not part of In-Process Total or Weighted Average for SF & Pre-Leasing percentage.

5/ 16 of the 138 contracts have closed as of 10/29/08

6/ “Completed Not Stabilized” and Redevelopment properties are recorded in the Consolidated Balance Sheet in the Land and Building accounts, not Development-in-Process.

Highwoods Properties, Inc. 27 9/30/08

Development Land

September 30, 2008

Dollars in thousands

Market	Usable Acres	Total Estimated Market Value
Atlanta	233	$	32,882
Raleigh	190		43,566
Greensboro	47		12,505
Baltimore	39		10,300
Richmond	33		8,300
Tampa	20		15,402
Nashville	16		7,951
Memphis	15		3,496
Orlando	15		16,348
Winston-Salem	10		1,896
Kansas City	1		2,100
Total 1/ 2/ 3/	619	$	154,746

1/ Includes 75 acres currently classified as Development in Process on our consolidated balance sheet.

2/ Developable square footage on core land holdings, which constitute 479 of the total 619 acres, is approximately 5.1 million of office space and 2.5 million of industrial space.

3/ Includes 34 acres ($9.4 million based on expected gross proceeds) included in property held for sale at September 30, 2008.

Highwoods Properties, Inc. 28 9/30/08

Acquisition Activity

Dollars in thousands

Name	Market	Type	Date Acquired	Square Footage	Total Cost
First quarter 2008:
None
Second quarter 2008:
None
Third quarter 2008:
None

Highwoods Properties, Inc. 29 9/30/08

Unconsolidated Joint Ventures Assets, Debt and Liabilities

September 30, 2008

Dollars in thousands

				Venture’s Books
Joint Venture	Type 1/	Own %		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.00	%	$	7,445	$	—	$	592
Dallas County Partners I, LP	O/ I	50.00	%		30,719		48,601		51,130
Dallas County Partners II, LP	O	50.00	%		13,834		15,262		16,436
Dallas County Partners III, LP	O	50.00	%		114		—		28
Fountain Three	O/ I / R	50.00	%		24,858		32,478		34,512
RRHWoods, LLC	O/ M	50.00	%		85,232		81,035		84,633
Kessinger/Hunter, LLC	—	26.50	%		7,051		—		268
4600 Madison Associates, LP	O	12.50	%		17,979		12,865		13,532
Highwoods DLF 98/29, LP	O	22.81	%		149,656		74,997		80,795
Highwoods DLF 97/26 DLF 99/32, LP	O	42.93	%		99,627		55,096		58,862
Concourse Center Associates, LLC	O	50.00	%		13,284		8,738		8,972
Plaza Colonnade, LLC	O/R	50.00	%		72,127		65,875		67,563
Highwoods KC Glenridge Office, LP	O	40.00	%		22,681		16,424		17,794
Highwoods KC Glenridge Land, LP	O	40.00	%		780		—		108
Highwoods KC Orlando, LLC	O	40.00	%		204,958		140,087		149,642
Highwoods DLF Forum, LLC	O	25.00	%		121,461		67,500		72,446
Total				$	871,806	$	618,958	$	657,313
				Highwoods’ Share of Joint Venture
Joint Venture	Type 1/	Own %		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.00	%	$	3,648	$	—	$	290
Dallas County Partners I, LP	O/ I	50.00	%		15,360		24,301		25,565
Dallas County Partners II, LP	O	50.00	%		6,917		7,631		8,218
Dallas County Partners III, LP	O	50.00	%		57		—		14
Fountain Three	O/ I / R	50.00	%		12,429		16,239		17,256
RRHWoods, LLC	O/ M	50.00	%		42,616		40,518		42,317
Kessinger/Hunter, LLC	—	26.50	%		1,869		—		71
4600 Madison Associates, LP	O	12.50	%		2,247		1,608		1,692
Highwoods DLF 98/29, LP	O	22.81	%		34,137		17,107		18,429
Highwoods DLF 97/26 DLF 99/32, LP	O	42.93	%		42,770		23,654		25,269
Concourse Center Associates, LLC	O	50.00	%		6,642		4,369		4,486
Plaza Colonnade, LLC	O/R	50.00	%		36,064		32,938		33,782
Highwoods KC Glenridge Office, LP	O	40.00	%		9,072		6,570		7,118
Highwoods KC Glenridge Land, LP	O	40.00	%		312		—		43
Highwoods KC Orlando, LLC	O	40.00	%		81,983		56,035		59,857
Highwoods DLF Forum, LLC	O	25.00	%		30,360		16,872		18,109
Total 2/				$	326,483	$	247,842	$	262,516

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. 30 9/30/08

Unconsolidated Joint Ventures Income

For the Three Months Ended September 30, 2008

Dollars in thousands

			Venture’s Books
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	574	$	387	$	—	$	142	$	45
Dallas County Partners I, LP	50.00	%		2,539		1,604		769		459		(293	)
Dallas County Partners II, LP	50.00	%		1,607		745		397		216		249
Dallas County Partners III, LP	50.00	%		56		56		—		2		(2	)
Fountain Three	50.00	%		1,743		946		528		385		(116	)
RRHWoods, LLC	50.00	%		4,342		2,384		969		1,048		(59	)
Kessinger/Hunter, LLC	26.50	%		4,113		3,634		—		150		329
4600 Madison Associates, LP	12.50	%		1,284		553		224		399		108
Highwoods DLF 98/29, LP	22.80	%		4,925		1,794		1,248		1,297		586
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		4,009		1,808		1,067		1,016		118
Concourse Center Associates, LLC	50.00	%		458		149		159		78		72
Plaza Colonnade, LLC	50.00	%		2,538		956		963		547		72
Highwoods KC Glenridge Office, LP	40.00	%		826		525		210		279		(188	)
Highwoods KC Glenridge Land, LP	40.00	%		—		2		—		—		(2	)
Highwoods KC Orlando, LLC	40.00	%		8,367		3,631		1,846		1,836		1,054
Highwoods DLF Forum, LLC	25.00	%		3,559		1,318		878		1,386		(23	)
Total			$	40,940	$	20,492	$	9,258	$	9,240	$	1,950
			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	281	$	190	$	—	$	70	$	21
Dallas County Partners I, LP	50.00	%		1,270		802		385		230		(147	)
Dallas County Partners II, LP	50.00	%		803		373		198		108		124
Dallas County Partners III, LP	50.00	%		28		28		—		1		(1	)
Fountain Three	50.00	%		871		473		264		192		(58	)
RRHWoods, LLC	50.00	%		2,171		1,192		485		524		(30	)
Kessinger/Hunter, LLC	26.50	%		1,090		963		—		39		88
4600 Madison Associates, LP	12.50	%		160		69		28		50		13
Highwoods DLF 98/29, LP	22.81	%		1,124		409		284		295		136
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		1,721		776		458		436		51
Concourse Center Associates, LLC	50.00	%		229		75		79		39		36
Plaza Colonnade, LLC	50.00	%		1,269		478		482		274		35
Highwoods KC Glenridge Office, LP	40.00	%		330		210		84		112		(76	)
Highwoods KC Glenridge Land, LP	40.00	%		—		1		—		—		(1	)
Highwoods KC Orlando, LLC	40.00	%		3,347		1,453		738		734		422
Highwoods DLF Forum, LLC	25.00	%		890		330		219		347		(6	)
Total 1/ 2/			$	15,584	$	7,822	$	3,704	$	3,451	$	607

1/ Highwoods’ share of Depreciation and Amortization from these tables will not equal Depreciation and Amortization of Real 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 Affiliates on 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. 31 9/30/08

Unconsolidated Joint Ventures Income

For the Nine Months Ended September 30, 2008

Dollars in thousands

			Venture’s Books
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	1,743	$	1,188	$	—	$	424	$	131
Dallas County Partners I, LP	50.00	%		8,305		5,068		2,319		1,443		(525	)
Dallas County Partners II, LP	50.00	%		5,114		2,527		1,226		648		713
Dallas County Partners III, LP	50.00	%		194		173		—		5		16
Fountain Three	50.00	%		6,146		2,931		1,593		1,324		298
RRHWoods, LLC	50.00	%		13,217		7,519		2,883		3,198		(383	)
Kessinger/Hunter, LLC	26.50	%		12,252		10,898		—		450		904
4600 Madison Associates, LP	12.50	%		3,778		1,728		692		1,202		156
Highwoods DLF 98/29, LP	22.80	%		14,509		5,063		3,728		3,886		1,832
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		12,245		4,649		3,215		2,821		1,560
Concourse Center Associates, LLC	50.00	%		1,441		419		480		232		310
Plaza Colonnade, LLC	50.00	%		7,426		2,728		2,891		1,641		166
Highwoods KC Glenridge Office, LP	40.00	%		2,538		1,289		627		594		28
Highwoods KC Glenridge Land, LP	40.00	%		—		7		—		—		(7	)
Highwoods KC Orlando, LLC	40.00	%		24,862		10,317		5,563		5,563		3,419
Highwoods DLF Forum, LLC	25.00	%		6,890		2,451		1,733		2,787		(81	)
Total			$	120,660	$	58,955	$	26,950	$	26,218	$	8,537
			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	854	$	582	$	—	$	208	$	64
Dallas County Partners I, LP	50.00	%		4,153		2,534		1,160		722		(263	)
Dallas County Partners II, LP	50.00	%		2,557		1,264		613		324		356
Dallas County Partners III, LP	50.00	%		97		87		—		3		7
Fountain Three	50.00	%		3,073		1,466		797		662		148
RRHWoods, LLC	50.00	%		6,609		3,760		1,442		1,599		(192	)
Kessinger/Hunter, LLC	26.50	%		3,247		2,888		—		119		240
4600 Madison Associates, LP	12.50	%		472		216		87		150		19
Highwoods DLF 98/29, LP	22.81	%		3,310		1,155		850		886		419
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		5,257		1,996		1,380		1,211		670
Concourse Center Associates, LLC	50.00	%		721		210		240		116		155
Plaza Colonnade, LLC	50.00	%		3,713		1,364		1,446		821		82
Highwoods KC Glenridge Office, LP	40.00	%		1,015		516		251		238		10
Highwoods KC Glenridge Land, LP	40.00	%		—		3		—		—		(3	)
Highwoods KC Orlando, LLC	40.00	%		9,945		4,127		2,225		2,225		1,368
Highwoods DLF Forum, LLC	25.00	%		1,723		613		433		697		(20	)
Total 1/ 2/			$	46,746	$	22,781	$	10,924	$	9,981	$	3,060

1/ Highwoods’ share of Depreciation and Amortization from these tables will not equal Depreciation and Amortization of Real 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 Affiliates on 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. 32 9/30/08

Joint Ventures Long-Term Debt Detail 1/

Dollars in thousands

Joint Venture	Own %		Lender	Interest Rate		Maturity Date	Loan Balance 9/30/08
Dallas County Partners I, LP	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18	$	41,452
Dallas County Partners I, LP	50.0	%	Regions	6.30	%	Jun-14		3,429
Dallas County Partners I, LP	50.0	%	Thrivent	8.45	%	Aug-10		1,556
Dallas County Partners I, LP	50.0	%	Bankers Trust	8.00	%	Jul-11		1,144
Dallas County Partners I, LP	50.0	%	Sun Life	5.92	%	Feb-16		1,020
				6.31	%			48,601
Dallas County Partners II, LP	50.0	%	Principal Life Insurance Company	10.19	%	Jun-13		15,262
Fountain Three	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		16,545
Fountain Three	50.0	%	Thrivent	7.00	%	Sep-12		5,162
Fountain Three	50.0	%	Thrivent	6.01	%	Oct-10		3,659
Fountain Three	50.0	%	Thrivent	6.01	%	Apr-09		3,659
Fountain Three	50.0	%	Lehman Brothers	8.02	%	Jul-09		3,453
				6.47	%			32,478
RRHWoods, LLC	50.0	%	Bank of America	6.80	%	Sep-12		26,178
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds /2	2.53	%	Nov-15		23,000
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	5.85	%	Mar-16		8,396
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds /2	2.50	%	Sep-15		6,000
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds /2	1.80	%	Nov-15		5,500
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		4,578
RRHWoods, LLC	50.0	%	UNUM Life Insurance Company	5.67	%	Mar-17		3,954
RRHWoods, LLC	50.0	%	Regions	6.30	%	Jun-14		3,429
				4.72	%			81,035
Plaza Colonnade, LLC	50.0	%	Met Life	5.72	%	Jan-17		48,190
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.90	%	Mar-24		11,620
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	6.00	%	Mar-16		4,290
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.38	%	Mar-10		1,775
				5.76	%			65,875
Highwoods KC Orlando, LLC	40.0	%	Met Life	5.21	%	Jul-14		140,087
Highwoods DLF Forum, LLC	25.0	%	Jackson National Life Insurance Co.	5.13	%	Nov-13		67,500
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%	Massachusetts Mutual Life Ins. Co.	7.66	%	May-12		55,096
Highwoods DLF 98/29, LP	22.8	%	USG Annuity & Life Company	6.78	%	Apr-11		47,347
Highwoods DLF 98/29, LP	22.8	%	Goldman Sachs	6.11	%	Jul-17		27,650
Highwoods KC Glenridge Office	40.0	%	Wachovia	4.84	%	Jun-14		16,424
4600 Madison Associates, LLC	12.5	%	State Farm	6.85	%	Apr-18		12,865
Concourse Center Associates, LLC	50.0	%	Lincoln National Life Insurance Co.	6.95	%	Jul-10		8,738
				5.90	%			375,707
				5.90	%		$	618,958
Highwoods’ share of the above							$	247,842

1/ Excludes loans related to two “consolidated” joint ventures.

2/ Floating rate loan based on market rates.

Highwoods Properties, Inc. 33 9/30/08

Joint Ventures Portfolio Summary

As of September 30, 2008

Summary by Location:

	Rentable Square Feet	Occupancy		Percentage of Annualized Cash Revenue Highwoods’ Share Only 1/
Market				Office		Industrial		Retail		Multi-Family		Total
Des Moines 2/	2,505,000	88.5	%	27.0	%	4.1	%	0.9	%	3.1	%	35.1	%
Orlando	1,854,000	89.8	%	27.8	%	—		—		—		27.8	%
Atlanta	835,000	94.7	%	12.3	%	—		—		—		12.3	%
Kansas City	714,000	83.0	%	8.2	%	—		—		—		8.2	%
Raleigh	814,000	88.5	%	6.2	%	—		—		—		6.2	%
Richmond	413,000	100.0	%	4.9	%	—		—		—		4.9	%
Piedmont Triad	364,000	72.1	%	2.4	%	—		—		—		2.4	%
Tampa	205,000	98.8	%	1.9	%	—		—		—		1.9	%
Charlotte	148,000	100.0	%	0.7	%	—		—		—		0.7	%
Other	110,000	100.0	%	0.5	%	—		—		—		0.5	%
Total 3/	7,962,000	88.2	%	91.9	%	4.1	%	0.9	%	3.1	%	100.0	%

1/ Annualized Cash Revenue is September, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/ Excludes 418 apartment units and related occupancy percentage of 96.9%.

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

Highwoods Properties, Inc. 34 9/30/08

Joint Ventures Lease Expirations

September 30, 2008

Dollars in thousands

Year	Rentable Square Feet Expiring 1/	Percent of Rentable Square Feet 1/		Annualized Cash Revenue 2/		Average Rental Rate		Percent of Annualized Cash Revenue 2/
Total
2008	145,826	2.1	%	$	3,339	$	22.90	2.3	%
2009	821,382	11.7	%		17,272		21.03	12.1	%
2010	770,421	11.0	%		14,828		19.25	10.4	%
2011	1,092,292	15.6	%		22,046		20.18	15.4	%
2012	592,906	8.4	%		12,514		21.11	8.7	%
2013	1,315,268	18.7	%		26,268		19.97	18.4	%
2014	648,611	9.2	%		14,747		22.74	10.3	%
2015	714,465	10.2	%		13,280		18.59	9.3	%
2016	51,121	0.7	%		1,342		26.25	0.9	%
2017	523,678	7.5	%		11,625		22.20	8.1	%
2018 and thereafter	342,651	4.9	%		5,843		17.05	4.1	%
	7,018,621	100.0	%	$	143,104	$	20.39	100.0	%

1/ Includes square feet expiring in properties in joint ventures that are consolidated.

2/ Annualized Cash Revenue is September, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 35 9/30/08

Joint Venture Acquisition and Disposition Activity

Dollars in thousands

Acquisitions

Name	Market	Type	Date Acquired	Square Footage	Total Cost 2/
First quarter 2008:
None
Second quarter 2008:
Forum	Raleigh	O	04/03/08	635,000	$	28,000
Third quarter 2008:
None

Dispositions

Name	Market	Type	Date Sold	Square Footage	Occupancy	Gross Sales Price
First quarter 2008:
None
Second quarter 2008:
None
Third quarter 2008:
None

1/ The letter “O” represents Office.

2/ Reflects Highwoods pro-rata share only.

Highwoods Properties, Inc. 36 9/30/08