Highwoods Announces Build-to-Suit Bridgestone...

Highwoods Announces Build-to-Suit Bridgestone Americas, Inc. CBD Nashville 514,000 SF November 11, 2014

DEVELOPMENT | ACQUISITION | LEASING | ASSET MANAGEMENT | NYSE: HIW /

Safe Harbor Certain matters discussed in this press release, such as the expected cost, timing and impact of our

development activity, are forward-looking statements within the meaning of the federal securities laws. These statements are distinguished by use of the words "will", "expect", "intend" and words of similar meaning. 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, among others, the following: the financial condition of our customers could deteriorate; development activity by our competitors in our existing markets could result in excessive supply of properties relative to customer demand; development, acquisition, reinvestment, disposition or joint venture projects may not be completed as quickly or on as favorable terms as anticipated; we may not be able to lease or re-lease second generation space quickly or on as favorable terms as old leases; our markets may suffer declines in economic growth; we may not be able to lease our newly constructed buildings as quickly or on as favorable terms as originally anticipated; unanticipated increases in interest rates could increase our debt service costs; unanticipated increases in operating expenses could negatively impact our NOI; we may not be able to meet our liquidity requirements or obtain capital on favorable terms to fund our working capital needs and growth initiatives or to repay or refinance outstanding debt upon maturity; the Company could lose key executive officers; and others detailed in the Company’s 2013 Annual Report on Form 10-K and subsequent SEC reports.

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DEVELOPMENT | ACQUISITION | LEASING | ASSET MANAGEMENT | NYSE: HIW / 3

≈1,700+ Jobs Coming to Downtown

“SoBro” … the Heart of Nashville’s Thriving Office, Entertainment and Arts District

≈ $200M Anticipated Investment

514,000 SF • 506,000 SF Office

100% Pre-Leased

• 8,000 SF Retail

Long-Term Lease Strong Credit

Bridgestone Americas • International HQ

for Bridgestone Americas Inc.

• In Nashville since 1992


Transaction Overview

Anticipated Investment ≈$200M (≈$389 / SF)

Lease Long-term Annual escalators

Pre-Leased 506,000 SF office, 100% 8,000 SF retail, 0%

Single Customer Office Bridgestone Americas, Inc. (Subsidiary of Bridgestone Corporation)

Land ≈ 1 acre

Acquired for this project Currently surface parking lot

Start / Delivery Late 4Q 2014 / Late 3Q 2017 66,000 SF abated until 2Q 2019

STRATEGIC INVESTMENT


Bridgestone Americas, Inc. (BSAM)

Primary Business Wholesale and retail tire sales,

tire manufacturing, automotive repair, roofing, building materials, air springs

Revenue 44% of Bridgestone Group total revenue

Use Americas Headquarters

Current Nashville Location Vacating 260K SF in Nashville airport submarket

Rationale Need additional space for expected growth and relocation of additional

businesses to Nashville

Current HIW Customer No

ABOUT BRIDGESTONE

Serving Society With Superior Quality


Building Design

Location SoBro CBD Nashville

Size 514,000 SF total

506,000 SF office 8,000 SF retail

Stories 30 above grade 4 below grade

Parking 15 floors in building

1150 spaces 2.24 / 1,000 SF

LEED Gold (planned)

Floor Plates 25,720 to 31,450 SF

Unique Features Exterior amenity terrace on level 14 Upper exterior terraces on level 28

COMMANDING DESIGN


The Pinnacle at Symphony Place

Bridgestone Build-to-Suit


ARCHITECT

PERKINS + WILL • Founded in 1935

• 1,600 strong staff in 24 locations worldwide

• Nearly 1,000 LEED accredited

• The firm has received multiple national design Honor Awards from the American Institute of Architects (AIA)

• Consistently ranked as the world's most prestigious design firm


GENERAL CONTRACTOR

BRASFIELD & GORRIE • Founded in 1921

• One of the nation's largest privately held construction firms

• 2,200 employees nationwide

• Ranked 32nd on a list of the Top 400 Contractors by Engineering News-Record


14TH FLOOR AMENITY TERRACE


CITY PARK VIEW & IMMEDIATE ACCESS

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Walkability (86 Walk Score)

Attractions

Music City Convention Center(Delivered 2013, $635M)

Schermerhorn Symphony Center Ryman Auditorium Country Music Hall of Fame Bridgestone Arena

Home of NHL Predators LP Field

Home of NFL Titans Riverfront Park Riverfront Amphitheater (Underway) East Bank Greenway

Hotels

Omni (800 Rooms) Hilton (330 Rooms) Hyatt Place (255 Rooms) Hampton Inn (154 Rooms)

Downtown Living

5,000+ Condominiums, Single-Family Homes and Apartments

200+ Dining and 100+ Shopping Options

SoBroSouth of Broadway District

Nashville’s New City Center

Pinnacle


CONSTRUCTION TIMELINE

Late 4Q 2014 Start

Late 3Q 2017 Deliver

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Nashville Division (as of 9/30/14)

Square Feet 3.4M SF

Building Count 23

Occupancy 96.4%

Percent of HIW Annual Revenues 13%

CBD Presence 520K SF 98% occupied by YE 2014

Land Inventory 77 acres

Development Potential 1.6M SF

HIGHWOODS NASHVILLE FOOTPRINT

HIW Nashville Development Pipeline (including Bridgestone Americas BTS)

717K SF $259M investment

92.1% pre-leased


THE PINNACLE AT SYMPHONY PLACE

Strategic Investment

Investment $152.8M $294/SF

Location SoBro CBD

Size 520,000 SF

Occupancy at Acquisition (September 5, 2013) 84.9%

Current Occupancy (September 30, 2014) 94.8%

Forecasted Occupancy (December 31, 2014) 98.0%

Distance from Bridgestone Americas Headquarters 1 block


HIGHWOODS DEVELOPMENT PIPELINE

Project Market SF Pre-Leased %

Investment $ in millions Delivers

Bridgestone Americas Headquarters Nashville 514,000 98 200 Late 3Q 17

MetLife Global Technology & Operations Hub (2 bldgs) Raleigh 427,000 100 110 2Q 15

Seven Springs West, AIG Anchor Customer Nashville 203,000 76 59 3Q 16

International Paper Headquarters Expansion Memphis 241,000 100 56 1Q 15

Laser Spine Institute Headquarters Tampa 176,000 100 56 1Q 16

GlenLake V, Multi-Customer Raleigh 166,000 25 36 2Q 15

Plaza 211 Redevelopment, Retail Multi-Customer Kansas City 28,000 0 17 3Q 15

Biologics Headquarters Raleigh 75,000 100 15 3Q 15

5 Markets 1,830,000 89% $549

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Highwoods Announces Build-to-Suit Bridgestone...

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