Piedmont REIT Signs over 500,000 SF of Leases Second Quarter-to-Date and Raises Full Year Leasing Guidance from 1.4 - 1.6 million SF to 1.8 - 2.0 million SF
- Over 500,000 SF of new leases signed in Q2 2025 to date, with 350,000 SF from new tenants
- Secured two large 10+ year lease commitments totaling 177,000 SF
- Strong pipeline with 400,000 SF in legal documentation and 2.6M SF in proposal stage
- Increased 2025 leasing guidance by 400,000 SF to 1.8-2.0M SF
- 70% of new tenant leases are for currently vacant space, reducing vacancy rates
- None.
Insights
Piedmont REIT's significant leasing momentum and raised guidance signal strong demand for premium office space despite market headwinds.
Piedmont's 500,000+ square feet of Q2 leasing activity represents a significant acceleration in space absorption, with 70% of new tenant leases filling previously vacant space. This robust performance has prompted management to increase their 2025 leasing guidance by 400,000 square feet at the midpoint (from 1.4-1.6M to 1.8-2.0M SF).
The two highlighted long-term leases鈥�93,000 SF in Dallas and 84,000 SF in Minneapolis鈥攁re particularly valuable as 10+ year commitments provide substantial tenant stability and reduce future re-leasing risk. The Minneapolis deal validates Piedmont's property repositioning strategy, demonstrating the company can attract quality tenants to refreshed properties.
Perhaps most telling is that 400,000+ SF of leases currently in legal documentation and a substantial 2.6 million SF in the proposal pipeline indicate no slowdown in office demand despite economic uncertainties. This contradicts broader market narratives about office space obsolescence and suggests Piedmont's Sunbelt-focused, amenity-rich portfolio is resonating with corporate tenants seeking quality workspaces.
The company's ability to attract a diverse tenant base鈥攆rom professional services to food distribution鈥攄emonstrates cross-sector appeal. With approximately 850,000 SF leased year-to-date, Piedmont appears well-positioned to exceed even their newly raised guidance if current momentum continues through year-end.
YTD Leasing of over 850,000 SF
Atlanta, June 02, 2025 (GLOBE NEWSWIRE) -- Piedmont Office AG真人官方ty Trust, Inc. ("Piedmont鈥� or 鈥渢he Company") (NYSE:PDM), an owner of Class A office properties located primarily in the Sunbelt, announced today, that the Company is participating in this week鈥檚 Nareit REITWeek Investor Conference in New York City. The Company has completed over 500,000 square feet of leasing thus far in the second quarter, with 350,000 square feet related to new tenants. Approximately
Commenting on second quarter operational success to date, Brent Smith, Piedmont's President and Chief Executive Officer, said, "The portfolio鈥檚 leasing momentum accelerated during April and May with the team executing over half a million square feet of leases despite the turbulent economic backdrop. To date, we have not witnessed a slowdown in leasing demand or decision making.聽聽 Piedmont鈥檚 client pipeline remains robust with over 400,000 square feet of leases currently in legal documentation with more than half for currently vacant space. In addition, we have 2.6 million square feet of leases in the proposal stage, further evidence that the investments that we have made in our portfolio, combined with a 'best-in-class' service and sustainability mindset, are resonating with a broad range of tenants. At this time, we are increasing our 2025 leasing guidance to 1.8 to 2.0 million square feet from our initial guidance of 1.4 to 1.6 million square feet. We continue to emphasize that Piedmont is uniquely positioned to capitalize on the growing demand for highly-amenitized, well-located work environments operated by a financially stable landlord."
About Piedmont Office AG真人官方ty Trust
Piedmont Office AG真人官方ty Trust, Inc. (NYSE: PDM) is an owner, manager, developer, redeveloper, and operator of high-quality, Class A office properties located primarily in the Sunbelt. Its approximately
Contact:聽 聽 聽 Sarah Heimlich
Company:聽 聽Piedmont Office AG真人官方ty Trust
Phone:聽聽聽聽聽聽聽聽770 418 8800
Email:聽 聽 聽 聽 聽 [email protected]
FAQ
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