Parkway Properties Announces Major Lease Renewal

JACKSON, Miss., March 31 /PRNewswire-FirstCall/ -- Parkway Properties, Inc. (NYSE: PKY) announced today the signing of a five-year renewal with Forman Perry Watkins Krutz & Tardy LLP (" Forman Perry") at City Centre, located at 200 South Lamar Street in the Central Business District ("CBD") of Jackson, Mississippi.  Forman Perry will contract by approximately 14,000 square feet on January 1, 2011, and will renew approximately 126,000 square feet through December 31, 2016, which is five years beyond their current expiration date.  No tenant improvements or leasing commissions are required with the renewal.  The net effective rent for the new lease is approximately $2.40 per square foot below the current effective rate, but the renewal stabilizes the rent rollover in 47% of the building through 2016, with a favorable net present value due to no capital costs being committed.

(Logo: http://www.newscom.com/cgi-bin/prnh/20030513/PARKLOGO )

Steven G. Rogers, President and Chief Executive Officer, stated, "We are pleased with Forman Perry's decision to extend their commitment to Parkway and to the Jackson CBD.  Forman Perry has been a Parkway customer in three different buildings since 1986, and we look forward to continuing our relationship with them for many years to come.  We were able to complete their renewal almost two years in advance of their December 2011 expiration, helping to further mitigate our near-term lease rollover exposure with no additional capital costs."

Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 65 office properties located in 11 states with an aggregate of approximately 13.3 million square feet of leasable space as of March 31, 2010.  Included in the portfolio are 21 properties totaling 3.9 million square feet that are owned jointly with other investors, representing 28.9% of the portfolio.  Fee-based real estate services are offered through the Company's wholly-owned subsidiary, Parkway Realty Services, which also manages and/or leases approximately 2.7 million square feet for third-party owners at March 31, 2010.

Parkway Properties, Inc.'s press releases and additional information about the Company are available on the World Wide Web at www.pky.com.

    
    
    CONTACT:   MANDY M. POPE
               INTERIM CHIEF FINANCIAL OFFICER
               [phone]
               WILLIAM R. FLATT
               CHIEF OPERATING OFFICER
               [phone]

SOURCE Parkway Properties, Inc.

>To order reprints of this article, click here: Reprints