Supplemental Information

December 31, 2007

Supplemental Information

Table of Contents

December 31, 2007

Schedule	Page
Corporate Information	i, ii and iii
Consolidated Statements of Income	1
Statement of Funds from Operations and Additional Information	2
Consolidated Balance Sheets	3
Estimated Net Asset Value	4
Components of Discontinued Operations	5
Capitalization	6
Long-Term Debt Summary	7
Long-Term Debt Detail	8
Portfolio Summary	9, 10 and 11
Occupancy Trends	12
Leasing Statistics	13, 14 and 15
Leasing Statistics by Market	16
Rental Rate Comparisons by Market	17
Lease Expirations	18 and 19
Office Lease Expirations by Market by Quarter	20
Industrial Lease Expirations by Market by Quarter	21
Office Lease Expirations by Market by Year	22
Industrial Lease Expirations by Market by Year	23
Customer Diversification	24
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 (Twelve 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
Joint Ventures Development	37

The information within refers to all Highwoods Properties’ wholly-owned entities, except pages 30 to 37, 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 the other risks detailed from time to time in the Company’s SEC reports.

Highwoods Properties, Inc. 12/31/07

Summary

Amounts in thousands, except per share amounts and ratios

	Three Months Ended
	12/31/07			09/30/07			06/30/07			03/31/07			12/31/06
Shares and units:
Common shares outstanding at end of period		57,167			57,158			57,131			56,711			56,211
Common units outstanding at end of period		4,057			4,059			4,062			4,115			4,733
Weighted average common shares outstanding—basic		56,640			56,628			56,460			56,040			55,740
Weighted average common shares outstanding—diluted		61,347			61,396			61,562			61,900			62,365
Share price:
At end of period	$	29.38		$	36.67		$	37.50		$	39.49		$	40.76
High close during period		38.26			39.01			43.84			46.95			41.31
Low close during period		28.89			32.09			37.50			37.99			36.40
Financial information:
Land sale gains, net of (impairments)	$	(419	)	$	(564	)	$	969		$	15,835		$	6,974
Lease termination income		840			259			1,477			41			618
Straight line rental income		4,048			908			890			1,572			2,401
Capitalized interest		2,489			2,742			2,365			2,147			1,770
Impairments on depreciable properties		—			(384	)		—			—			—
Gains on sales of depreciable properties		8,623			8,064			1,475			20,651			10,925
Gain from property insurance settlement		—			—			—			4,128			—
Funds from operations per share—diluted	$	0.65		$	0.59		$	0.58		$	0.91		$	0.71
Funds from operations per share—diluted, excluding certain items 1/	$	0.65		$	0.61		$	0.60		$	0.91		$	0.71
Wholly—owned property information:
In-Service rentable square feet:
Office		19,260			19,003			19,194			19,154			19,244
Industrial		6,036			5,942			6,280			6,280			6,281
Retail		1,317			1,318			1,317			1,326			1,327
Total		26,613			26,263			26,791			26,760			26,852
In-Service occupancy:
Office		91.1	%		89.7	%		88.5	%		89.3	%		89.0	%
Industrial		94.2	%		91.4	%		90.8	%		91.9	%		91.7	%
Retail		94.9	%		94.4	%		94.8	%		95.4	%		95.7	%
Total		92.0	%		90.4	%		89.3	%		90.2	%		90.0	%

1/ Excludes impairments on depreciable assets, losses on debt extinguishments and preferred stock redemption/repurchase charges.

Highwoods Properties, Inc. i 12/31/07

Corporate Information

Board of Directors

Thomas W. Adler

Gene H. Anderson

Kay N. Callison

Edward J. Fritsch

Lawrence S. Kaplan

Sherry A. Kellett

L. Glenn Orr Jr.

O. Temple Sloan Jr., Chairman

Corporate Officers

Edward J. Fritsch

President, Chief Executive Officer and Director

Michael E. Harris

Executive Vice President and Chief Operating Officer

Terry L. Stevens

Senior Vice President, Chief Financial Officer

Daniel L. Clemmens

Vice President, Chief Accounting Officer

S. Hugh Esleeck

Treasurer

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

Tabitha N. Zane

Vice President, Investor Relations and Corporate Communications

Research Coverage

Credit Suisse—North America

John Stewart—212-538-3183

Deutsche Banc Securities

Lou Taylor—212-469-4912

Friedman, Billings, Ramsey & Co., Inc.

Wilkes Graham—703-312-9737

Green Street Advisors

Cedric Lachance—949-640-8780

Morgan Stanley

David Cohen—212-761-8564

Smith Barney Citigroup

Jonathan Litt—212-816-0231

Stifel Nicolaus

John Guinee—410-454-5520

UBS Securities

Jamie Feldman—212-713-4932

Wachovia Securities

Chris Haley—443-263-6773

Highwoods Properties, Inc. ii 12/31/07

Corporate Information

Divisional Officers

Atlanta/Piedmont Triad

Gene H. Anderson—Senior Vice President

Atlanta, GA

James V. Bacchetta, Vice President

Piedmont Triad, NC

E. F. “Rick” Dehnert, Vice President

Orlando/Tampa

Michael F. Beale—Senior Vice President

Orlando, FL

Michael F. Beale, Senior Vice President

Tampa, FL

Daniel E. Woodward, Vice President

Raleigh

Raleigh, NC

Thomas "Skip" Hill, Vice President

Richmond

Richmond, VA

Paul W. Kreckman, Vice President

Nashville/Memphis/Columbia/Greenville

W. Brian Reames—Senior Vice President

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

W. Brian Reames, Senior Vice President

Memphis, TN

Steven L. Guinn, Vice President

Kansas City

Kansas City, MO

Barrett Brady, Senior Vice President

Glenn E. Stephenson, VP of Retail Operations

Corporate Headquarters

Highwoods Properties, Inc.

3100 Smoketree Court, Suite 600

Raleigh, NC 27604

919-872-4924

Stock Exchange

NYSE Trading Symbol: HIW

Investor Relations Contact

Tabitha Zane

Vice President, Investor Relations and Corporate Communications

Phone: 919-431-1529

Fax: 919-431-1439

E-mail: tabitha.zane@highwoods.com

Information Request

To request a standard Investor Relations package, Annual Report or to be added to our e-mail or fax list, please contact the Corporate Communications/IR Specialist at:

Phone: 919-431-1529

Email: HIW-IR@highwoods.com

The Company

Highwoods Properties, Inc., a member of the S&P MidCap 400 Index, is a fully integrated, self-administered 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 December 31, 2007, the Company owned or had an interest in 378 in-service office, industrial and retail properties encompassing approximately 33.9 million square feet. Highwoods also owned 634 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, Tennessee and Virginia. For more information about Highwoods Properties, please visit our website at www.highwoods.com.

Highwoods Properties, Inc. iii 12/31/07

Consolidated Statements of Income

Amounts in thousands, except per share amounts
	Year Ended						Three Months Ended
	12/31/07			12/31/06			12/31/07			09/30/07			06/30/07			03/31/07			12/31/06
Rental and other revenues	$	437,059		$	409,273		$	115,111		$	108,854		$	106,403		$	106,691		$	106,544
Operating expenses:
Rental property and other expenses		157,264			150,472			41,432			39,302			38,254			38,276			40,538
Depreciation and amortization		122,172			112,883			30,797			32,199			30,034			29,142			29,694
Impairment of assets held for use		789			—			—			789			—			—			—
General and administrative		41,570			37,309			10,142			9,649			10,868			10,911			11,011
Total operating expenses		321,795			300,664			82,371			81,939			79,156			78,329			81,243
Interest expense:
Contractual		93,992			94,229			24,478			23,728			23,097			22,689			22,374
Amortization of deferred financing costs		2,415			2,375			624			616			609			566			492
Financing obligations		3,930			4,162			962			981			995			992			972
		100,337			100,766			26,064			25,325			24,701			24,247			23,838
Other income/(expense):
Interest and other income		6,413			6,993			1,310			1,471			2,117			1,515			2,707
Settlement of tenant bankruptcy claim		—			1,581			—			—			—			—			1,581
Loss on debt extinguishments		—			(494	)		—			—			—			—			(27	)
		6,413			8,080			1,310			1,471			2,117			1,515			4,261
Income before disposition of property, insurance gain, minority interest and equity in earnings of unconsolidated affiliates		21,340			15,923			7,986			3,061			4,663			5,630			5,724
Gains on disposition of property, net		20,562			16,157			190			1,288			2,341			16,743			7,862
Gain from property insurance settlement		4,128			—			—			—			—			4,128			—
Minority interest		(3,898	)		(2,245	)		(631	)		(285	)		(397	)		(2,585	)		(1,036	)
Equity in earnings of unconsolidated affiliates		14,810			6,841			1,880			1,207			2,006			9,717			1,492
Income from continuing operations		56,942			36,676			9,425			5,271			8,613			33,633			14,042
Discontinued operations:
Income from discontinued operations, net of minority interest		1,865			3,210			101			521			580			663			1,154
Net gains on sales of discontinued operations, net of minority interest		32,012			13,858			7,479			6,175			96			18,262			9,220
Release of FASB FIN 48 tax liability		1,473			—			—			1,473			—			—			—
		35,350			17,068			7,580			8,169			676			18,925			10,374
Net income		92,292			53,744			17,005			13,440			9,289			52,558			24,416
Dividends on preferred stock		(13,477	)		(17,063	)		(2,838	)		(2,680	)		(3,846	)		(4,113	)		(4,113	)
Excess of preferred stock redemption cost over carrying value		(2,285	)		(1,803	)		—			(842	)		(1,443	)		—			—
Net income available for common stockholders	$	76,530		$	34,878		$	14,167		$	9,918		$	4,000		$	48,445		$	20,303
Net income per common share—diluted:
Income from continuing operations	$	0.72		$	0.32		$	0.12		$	0.03		$	0.06		$	0.52		$	0.17
Income from discontinued operations		0.62			0.30			0.13			0.14			0.01			0.33			0.18
Net income	$	1.34		$	0.62		$	0.25		$	0.17		$	0.07		$	0.85		$	0.35
Weighted average common shares outstanding—diluted		61,547			61,362			61,347			61,396			61,562			61,900			62,365
Dividends declared and paid per common share	$	1.700		$	1.700		$	0.425		$	0.425		$	0.425		$	0.425		$	0.425

Highwoods Properties, Inc. 1 12/31/07

Statement of Funds from Operations

and Additional Information

Amounts in thousands, except per share amounts
	Year Ended						Three Months Ended
	12/31/07			12/31/06			12/31/07			09/30/07			06/30/07			03/31/07			12/31/06
Funds from operations:
Net income	$	92,292		$	53,744		$	17,005		$	13,440		$	9,289		$	52,558		$	24,416
Dividends to preferred stockholders		(13,477	)		(17,063	)		(2,838	)		(2,680	)		(3,846	)		(4,113	)		(4,113	)
Excess of preferred stock redemption cost over carrying value		(2,285	)		(1,803	)		—			(842	)		(1,443	)		—			—
Net income available for common stockholders		76,530			34,878			14,167			9,918			4,000			48,445			20,303
Add/(deduct):
Depreciation and amortization of real estate assets		119,754			109,796			30,221			31,602			29,426			28,505			28,946
(Gains) on disposition of depreciable properties		(3,952	)		(4,114	)		(609	)		(1,063	)		(1,372	)		(908	)		(888	)
Minority interest from the Operating Partnership in income from operations		3,219			1,640			470			115			229			2,405			877
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		11,738			11,191			2,887			3,107			2,878			2,866			3,048
(Gains) on disposition of depreciable properties		(7,158	)		—			—			—			—			(7,158	)		—
Discontinued operations:
Depreciation and amortization of real estate assets		1,692			5,438			110			465			513			604			972
(Gains) on disposition of depreciable properties		(34,861	)		(15,082	)		(8,014	)		(7,001	)		(103	)		(19,743	)		(10,037	)
Release of FASB FIN 48 tax liability		(1,473	)		—			—			(1,473	)		—			—			—
Minority interest from the Operating Partnership in income from discontinued operations		2,605			1,538			543			479			49			1,534			919
Funds from operations	$	168,094		$	145,285		$	39,775		$	36,149		$	35,620		$	56,550		$	44,140
Funds from operations per share—diluted
Net income available for common stockholders	$	1.34		$	0.62		$	0.25		$	0.17		$	0.07		$	0.85		$	0.35
Add/(deduct):
Depreciation and amortization of real estate assets		1.95			1.79			0.49			0.51			0.48			0.46			0.46
(Gains) on disposition of depreciable properties		(0.06	)		(0.07	)		(0.01	)		(0.02	)		(0.02	)		(0.01	)		(0.01	)
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		0.18			0.18			0.05			0.05			0.04			0.04			0.05
(Gains) on disposition of depreciable properties		(0.12	)		—			—			—			—			(0.12	)		—
Discontinued operations:
Depreciation and amortization of real estate assets		0.03			0.09			—			0.01			0.01			0.01			0.02
(Gains) on disposition of depreciable properties		(0.57	)		(0.24	)		(0.13	)		(0.11	)		—			(0.32	)		(0.16	)
Release of FASB FIN 48 tax liability		(0.02	)		—			—			(0.02	)		—			—			—
Funds from operations	$	2.73		$	2.37		$	0.65		$	0.59		$	0.58		$	0.91		$	0.71
Weighted average shares outstanding—diluted		61,547			61,362			61,347			61,396			61,396			61,562			61,900
Additional information: 1/
Funds from operations, excluding certain items 2/	$	170,763		$	150,906		$	39,775		$	37,375		$	37,063		$	56,550		$	44,167
Funds from operations per share, excluding certain items 2/	$	2.77		$	2.46		$	0.65		$	0.61		$	0.60		$	0.91		$	0.71
Straight line rental income	$	(7,418	)
Amortization of lease incentives		962
Depreciation of non-real estate assets		1,754
Ground lease straight line rent		198
Amortization of stock-based compensation		5,031
Amortization of deferred financing costs		2,415
Amortization of accumulated other comprehensive loss		577
Harborview non-cash FMV charge		536
Cash portion of preferred stock repurchase charge		(248	)
Non-incremental revenue generating capital expenditures paid: 3/
Building improvements		(19,399	)
2nd generation tenant improvements		(36,613	)
2nd generation lease commissions		(11,900	)
Common dividends and unit distributions paid		(103,718	)

1/ Increase or (decrease) to cash flows.

2/ Excludes impairment on depreciable assets, losses or debt extinguishments and preferred stock redemption/repurchase charges.

3/ Excludes capital expenditures paid for buildings sold prior to December 31, 2007.

Highwoods Properties, Inc. 2 12/31/07

Consolidated Balance Sheets

Dollars in thousands
	12/31/07			12/31/06
Assets:
Real estate assets, at cost:
Land	$	357,841		$	345,548
Buildings and tenant improvements		2,708,989			2,573,032
Development in process		101,661			101,899
Land held for development		103,365			102,642
		3,271,856			3,123,121
Less-accumulated depreciation		(649,765	)		(588,307	)
Net real estate assets		2,622,091			2,534,814
Real estate and other assets, net, held for sale		10,466			44,321
Cash and cash equivalents		3,140			16,690
Restricted cash		15,896			2,027
Accounts receivable, net		23,521			23,347
Notes receivable, net		5,226			7,871
Accrued straight-line rents receivable, net		74,427			68,364
Investment in unconsolidated affiliates		57,759			60,359
Deferred financing and leasing costs, net		72,188			66,352
Prepaid expenses and other assets		41,954			20,708
Total Assets	$	2,926,668		$	2,844,853
Liabilities, Minority Interest and Stockholders’ Equity:
Mortgages and notes payable	$	1,641,987		$	1,465,129
Accounts payable, accrued expenses and other liabilities		155,779			156,737
Financing obligations		35,071			35,530
Total Liabilities		1,832,837			1,657,396
Minority interest		70,251			79,726
Stockholders’ Equity:
Preferred stock		135,437			197,445
Common stock		572			562
Additional paid-in capital		1,448,055			1,449,337
Distributions in excess of net earnings		(559,546	)		(538,098	)
Accumulated other comprehensive loss		(938	)		(1,515	)
Total Stockholders’ Equity		1,023,580			1,107,731
Total Liabilities, Minority Interest and Stockholders’ Equity	$	2,926,668		$	2,844,853

Highwoods Properties, Inc. 3 12/31/07

Estimated Net Asset Value Ranges

December 31, 2007

Dollars in thousands, except per share amounts

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 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			247,552			247,552
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 stablilized 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.

4

Components of Discontinued Operations

Dollars in thousands
	Year Ended						Three Months Ended
	12/31/07			12/31/06			12/31/07			09/30/07			06/30/07			03/31/07			12/31/06
Rental and other revenues	$	7,084		$	20,501		$	697		$	2,011		$	2,083		$	2,293		$	4,070
Operating expenses:
Rental property and other expenses		3,416			8,374			493			990			950			983			1,766
Depreciation and amortization		1,692			5,438			110			465			513			604			972
Impairment of assets held for use		—			2,600			—			—			—			—			—
General and administrative		—			87			—			—			—			—			12
Total operating expenses		5,108			16,499			603			1,455			1,463			1,587			2,750
Interest expense		—			560			—			—			—			—			78
Other income		29			82			15			2			2			10			14
Income/(loss) before minority interest and gains on sales of discontinued operations		2,005			3,524			109			558			622			716			1,256
Minority interest in discontinued operations		(140	)		(314	)		(8	)		(37	)		(42	)		(53	)		(102	)
Income/(loss) from discontinued operations before gains on sales of discontinued operations		1,865			3,210			101			521			580			663			1,154
Net gains on sales of discontinued operations		34,477			15,082			8,014			6,617			103			19,743			10,037
Minority interest in discontinued operations		(2,465	)		(1,224	)		(535	)		(442	)		(7	)		(1,481	)		(817	)
Net gains on sales of discontinued operations, net of minority interest		32,012			13,858			7,479			6,175			96			18,262			9,220
Net income from discontinued operations before release of FASB FIN 48 tax liability		33,877			17,068			7,580			6,696			676			18,925			10,374
Release of FASB FIN 48 tax liability		1,473			—			—			1,473			—			—			—
Net income from discontinued operations	$	35,350		$	17,068		$	7,580		$	8,169		$	676		$	18,925		$	10,374

Highwoods Properties, Inc. 5 12/31/07

Capitalization

Dollars, shares, and units in thousands
	12/31/07		09/30/07		06/30/07		03/31/07		12/31/06
Long-Term Debt (see pages 7 & 8):	$	1,641,988	$	1,601,474	$	1,557,571	$	1,487,509	$	1,465,129
Financing Obligations:	$	35,071	$	34,919	$	35,683	$	35,529	$	35,530
Preferred Stock (at liquidation value):
Series A 8 5/8% Perpetual Preferred Stock	$	82,937	$	82,937	$	104,945	$	104,945	$	104,945
Series B 8% Perpetual Preferred Stock		52,500		52,500		52,500		92,500		92,500
Total preferred stock	$	135,437	$	135,437	$	157,445	$	197,445	$	197,445
Common Shares and Units Outstanding:
Common stock outstanding		57,167		57,158		57,131		56,711		56,211
Minority interest partnership units		4,057		4,059		4,062		4,115		4,733
Total common shares and units outstanding		61,224		61,217		61,193		60,826		60,944
Stock price at period end	$	29.38	$	36.67	$	37.50	$	39.49	$	40.76
Market value of common equity	$	1,798,761	$	2,244,827	$	2,294,738	$	2,402,019	$	2,484,077
Total market capitalization with debt and obligations	$	3,611,257	$	4,016,657	$	4,045,437	$	4,122,502	$	4,182,181

See pages 30 to 37 for information regarding Highwoods’ Joint Ventures.

Highwoods Properties, Inc. 6 12/31/07

Long-Term Debt Summary

Dollars in thousands

	12/31/07			09/30/07			06/30/07			03/31/07			12/31/06
Balances Outstanding:
Secured:
Conventional fixed rate 1/	$	645,500		$	657,408		$	659,741		$	662,036		$	730,732
Variable rate debt		19,811			11,920			1,014			13,688			10,897
Secured total		665,311			669,328			660,755			675,724			741,629
Unsecured:
Fixed rate bonds and notes		748,877			748,846			748,816			748,785			350,000
Credit facility		227,800			183,300			148,000			63,000			373,500
Unsecured total		976,677			932,146			896,816			811,785			723,500
Total	$	1,641,988		$	1,601,474		$	1,557,571		$	1,487,509		$	1,465,129
End of Period Weighted Average Interest Rates:
Secured:
Conventional fixed rate		6.62	%		6.63	%		6.63	%		6.63	%		6.78	%
Variable rate debt		6.61	%		7.02	%		7.11	%		6.55	%		6.55	%
Secured total		6.62	%		6.64	%		6.63	%		6.63	%		6.78	%
Unsecured:
Fixed rate bonds		6.61	%		6.61	%		6.61	%		6.61	%		7.48	%
Credit facility		5.80	%		6.32	%		6.12	%		6.12	%		6.14	%
Unsecured total		6.42	%		6.56	%		6.53	%		6.57	%		6.79	%
Average		6.50	%		6.59	%		6.57	%		6.60	%		6.78	%

Maturity Schedule:

	Future Maturities of Debt						Average
Year	Secured Debt 2/		Unsecured Debt		Total Debt 2/		Interest Rate
2008	$	—	$	100,000	$	100,000	7.13	%
2009		127,370		277,800		405,170	6.72	%
2010		19,811		—		19,811	6.61	%
2011		—		—		—	—
2012		212,709		—		212,709	6.94	%
2013		268,026		—		268,026	5.90	%
2014		37,395		—		37,395	5.79	%
2015		—		—		—	—
2016		—		—		—	—
2017		—		398,877		398,877	5.85	%
2018		—		200,000		200,000	7.50	%
Total maturities	$	665,311	$	976,677	$	1,641,988	6.50	%

Weighted average maturity = 6.1 years

1/ Includes a $22.7 million loan related to a consolidated 20% owned joint venture (Harborview) and $37.4 million in loans at December 31, 2007 related to a consolidated 50% joint venture (Markel).

2/ All periods exclude annual principal amortization.

Highwoods Properties, Inc. 7 12/31/07

Long-Term Debt Detail

Dollars in thousands

Secured Loans

Lender	Rate		Maturity Date	Loan Balance 12/31/07		Undepreciated Book Value of Assets Secured
Northwestern Mutual	7.05	%	Jan-12	$	190,000	$	297,585
Northwestern Mutual	6.03	%	Mar-13		135,594		182,725
Massachusetts Mutual Life Ins. Co. 1/	5.68	%	Dec-13		120,971		214,167
Monumental Life Ins. Co. 2/	7.77	%	Nov-09		80,408		185,176
Monumental Life Ins. Co. 2/	7.87	%	Nov-09		41,321
Metropolitan Life Ins. Co. 3/	6.06	%	Oct-12		22,709		38,953
Wells Fargo 4/	6.65	%	May-10		12,120		16,263
Principal Life Insurance Company 5/	5.79	%	Jan-14		11,463		14,888
Principal Life Insurance Company 5/	5.79	%	Jan-14		11,463		18,781
Massachusetts Mutual Life Ins. Co. 1/	6.48	%	Dec-13		10,693
Principal Life Insurance Company 5/	5.74	%	Jan-14		9,040		14,285
Wells Fargo 4/	6.55	%	May-10		7,691		10,688
Principal Life Insurance Company 5/	5.89	%	Jan-14		5,427		7,514
Lutheran Brotherhood	6.75	%	Apr-09		3,686		8,027
Security Life of Denver	8.85	%	Aug-09		1,954		9,392
American United Life	9.00	%	Jun-13		771		3,321
	6.62	%			665,311	$	1,021,765
Unsecured Bonds
Bonds	7.13	%	Feb-08		100,000
Bonds	8.13	%	Jan-09		50,000
Bonds	5.85	%	Mar-17		398,877
Bonds	7.50	%	Apr-18		200,000
	6.61	%			748,877
Unsecured Loans
Credit facility 4/ 6/ 7/	5.80	%	May-09		227,800
Total Debt	6.50	%		$	1,641,988

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/ Maturity date excludes one-year extension option.

7/ In August, 2007, Company entered into a $50 million swap locking in a fixed rate of 4.7025% for a one year period.

Highwoods Properties, Inc. 8 12/31/07

Portfolio Summary—Wholly-Owned Properties Only 1/

(Rentable Square Feet)

Office Industrial & Retail	12/31/07		09/30/07		06/30/07		03/31/07		12/31/06
In-Service:
Office 2/	19,260,000		19,003,000		19,194,000		19,154,000		19,244,000
Industrial	6,036,000		5,942,000		6,280,000		6,280,000		6,281,000
Retail 3/	1,317,000		1,318,000		1,317,000		1,326,000		1,327,000
Total 4/	26,613,000		26,263,000		26,791,000		26,760,000		26,852,000
Development Completed—Not Stabilized:
Office 2/	607,000		867,000		560,000		600,000		504,000
Industrial	681,000		681,000		681,000		418,000		418,000
Retail	—		—		—		—		—
Total	1,288,000		1,548,000		1,241,000		1,018,000		922,000
Development—In Process:
Office 2/	887,000		1,233,000		1,387,000		1,166,000		1,357,000
Industrial	—		120,000		120,000		383,000		383,000
Retail	30,000		30,000		—		—		—
Total	917,000		1,383,000		1,507,000		1,549,000		1,740,000
Total:
Office 2/	20,754,000		21,103,000		21,141,000		20,920,000		21,105,000
Industrial	6,717,000		6,743,000		7,081,000		7,081,000		7,082,000
Retail 3/	1,347,000		1,348,000		1,317,000		1,326,000		1,327,000
Total 4/	28,818,000		29,194,000		29,539,000		29,327,000		29,514,000
Same Property
Office 2/	18,369,000		18,369,000		18,369,000		18,369,000		18,369,000
Industrial	5,916,000		5,916,000		5,916,000		5,916,000		5,916,000
Retail	1,294,000		1,294,000		1,294,000		1,294,000		1,294,000
Total	25,579,000		25,579,000		25,579,000		25,579,000		25,579,000
Percent Leased/Pre-Leased:
In-Service:
Office	91.1	%	89.7	%	88.5	%	89.3	%	89.0	%
Industrial	94.2	%	91.4	%	90.8	%	91.9	%	91.7	%
Retail	94.9	%	94.4	%	94.8	%	95.4	%	95.7	%
Total	92.0	%	90.4	%	89.3	%	90.2	%	90.0	%
Development Completed—Not Stabilized:
Office	71.4	%	75.9	%	69.9	%	62.8	%	62.8	%
Industrial	78.2	%	78.2	%	61.0	%	44.0	%	44.0	%
Retail	—		—		—		—		—
Total	75.0	%	76.9	%	65.0	%	55.1	%	54.3	%
Development—In Process:
Office	59.9	%	71.2	%	72.5	%	55.0	%	55.3	%
Industrial	—		100.0	%	0.0	%	50.1	%	0.0	%
Retail	100.0	%	100.0	%	—		—		—
Total	61.2	%	74.3	%	66.7	%	53.8	%	43.1	%
Same Property
Office	90.9	%	89.8	%	88.8	%	89.4	%	89.7	%
Industrial	94.1	%	91.4	%	91.7	%	92.8	%	92.9	%
Retail	94.8	%	94.3	%	94.7	%	95.3	%	95.7	%
Total	91.8	%	90.4	%	89.8	%	90.5	%	90.7	%

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 for sale residential units and minor for rent apartment buildings.

Highwoods Properties, Inc. 9 12/31/07

Portfolio Summary

(Continued)

As of December 31, 2007

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

	Rentable				Percentage of Annualized Cash Revenue 2/
Market	Square Feet		Occupancy		Office		Industrial		Retail		Total
Raleigh 3/	3,554,000		91.5	%	15.4	%	—		—		15.4	%
Kansas City	2,215,000	4/	89.4	%	4.4	%	0.0	%	9.5	%	13.9	%
Atlanta	5,289,000		93.0	%	9.7	%	3.8	%	—		13.5	%
Tampa	2,418,000		95.0	%	13.5	%	—		—		13.5	%
Nashville	3,184,000		95.1	%	13.3	%	—		—		13.3	%
Piedmont Triad 5/	5,328,000		89.3	%	6.8	%	3.9	%	—		10.7	%
Richmond	2,134,000		92.5	%	8.9	%	—		—		8.9	%
Memphis	1,276,000		94.9	%	5.8	%	—		—		5.8	%
Greenville	897,000		85.6	%	3.3	%	—		—		3.3	%
Orlando	218,000		100.0	%	1.3	%	—		—		1.3	%
Other	100,000		69.6	%	0.4	%	—		—		0.4	%
Total	26,613,000		92.0	%	82.8	%	7.7	%	9.5	%	100.0	%
Summary by Location, Including Joint Venture Properties:
					Percentage of Annualized Cash Revenue 2/ 6/
Market	Rentable Square Feet		Occupancy		Office		Industrial		Retail		Multi-Family		Total
Raleigh	3,732,000		91.9	%	13.9	%	—		—		—		13.9	%
Atlanta	6,124,000		93.6	%	10.0	%	3.4	%	—		—		13.4	%
Kansas City	2,929,000	4/	87.9	%	4.8	%	0.0	%	8.4	%	—		13.2	%
Tampa	2,623,000		95.3	%	12.1	%	—		—		—		12.1	%
Nashville	3,184,000		95.1	%	11.8	%	—		—		—		11.8	%
Piedmont Triad	5,692,000		89.8	%	6.4	%	3.4	%	—		—		9.8	%
Richmond	2,547,000		93.7	%	8.5	%	—		—		—		8.5	%
Memphis	1,276,000		94.8	%	5.1	%	—		—		—		5.1	%
Orlando	2,071,000		92.1	%	4.5	%	—		—		—		4.5	%
Des Moines	2,505,000		92.4	%	3.3	%	0.5	%	0.1	%	0.4	%	4.3	%
Greenville	897,000		85.6	%	2.9	%	—		—		—		2.9	%
Other	210,000		85.5	%	0.4	%	—		—		—		0.4	%
Charlotte	148,000		100.0	%	0.1	%	—		—		—		0.1	%
Total	33,938,000		92.2	%	83.8	%	7.3	%	8.5	%	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 December, 2007 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 Rental Revenue, see page 34.

Highwoods Properties, Inc. 10 12/31/07

Portfolio Summary—Wholly-Owned Properties Only

(Continued)

As of December 31, 2007

	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	3,554,000	91.5	%	18.8	%	—	—		—
Tampa	2,418,000	95.0	%	16.2	%	—	—		—
Nashville	3,184,000	95.1	%	16.1	%	—	—		—
Atlanta	2,470,000	90.5	%	11.7	%	2,819,000	95.2	%	49.7	%
Richmond	2,134,000	92.5	%	10.8	%	—	—		—
Piedmont Triad	2,115,000	83.1	%	8.2	%	3,213,000	93.4	%	50.2	%
Memphis	1,276,000	94.9	%	7.0	%	—	—		—
Kansas City	894,000	81.6	%	5.3	%	4,000	46.5	%	0.1	%
Greenville	897,000	85.6	%	3.9	%	—	—		—
Orlando	218,000	100.0	%	1.5	%	—	—		—
Other	100,000	69.6	%	0.5	%	—	—		—
	19,260,000	91.1	%	100.0	%	6,036,000	94.2	%	100.0	%

	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Cash Revenue 2/
Kansas City 3/	1,317,000	94.9	%	100.0	%
	1,317,000	94.9	%	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 December, 2007 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 12/31/07

Occupancy Trends—Office, Industrial and Retail Properties 1/

Market	Measurement	12/31/07		09/30/07		06/30/07		03/31/07		12/31/06
Atlanta	Rentable Square Feet	5,289,000		5,199,000		5,514,000		5,514,000		5,515,000
	Occupancy	93.0	%	92.8	%	92.9	%	92.7	%	94.0	%
	Current Properties 2/	92.9	%	92.8	%	92.7	%	92.3	%	94.1	%
Columbia	Rentable Square Feet	—		253,000		253,000		253,000		252,000
	Occupancy	—		82.5	%	72.0	%	71.0	%	48.7	%
	Current Properties 2/	—		82.5	%	72.0	%	71.0	%	48.5	%
Greenville	Rentable Square Feet	897,000		897,000		1,109,000		1,109,000		1,109,000
	Occupancy	85.6	%	87.7	%	76.3	%	77.2	%	75.3	%
	Current Properties 2/	85.6	%	87.7	%	84.0	%	85.1	%	82.7	%
Kansas City 3/	Rentable Square Feet	2,215,000		2,216,000		2,215,000		2,224,000		2,224,000
	Occupancy	89.4	%	89.3	%	89.5	%	89.9	%	90.1	%
	Current Properties 2/	89.4	%	89.3	%	89.6	%	89.9	%	90.0	%
Memphis	Rentable Square Feet	1,276,000		1,276,000		1,276,000		1,276,000		1,197,000
	Occupancy	94.9	%	92.5	%	92.7	%	92.8	%	91.8	%
	Current Properties 2/	94.5	%	92.1	%	92.2	%	92.3	%	91.8	%
Nashville	Rentable Square Feet	3,184,000		2,875,000		2,875,000		2,875,000		2,876,000
	Occupancy	95.1	%	92.5	%	90.9	%	92.4	%	91.6	%
	Current Properties 2/	94.6	%	92.3	%	90.5	%	92.1	%	91.3	%
Orlando	Rentable Square Feet	218,000		218,000		218,000		218,000		218,000
	Occupancy	100.0	%	99.4	%	98.9	%	98.9	%	100.0	%
	Current Properties 2/	100.0	%	99.4	%	98.9	%	98.9	%	100.0	%
Piedmont Triad	Rentable Square Feet	5,328,000		5,234,000		5,235,000		5,195,000		5,195,000
	Occupancy	89.3	%	86.1	%	85.7	%	88.3	%	88.7	%
	Current Properties 2/	89.6	%	86.7	%	86.4	%	88.3	%	88.6	%
Raleigh	Rentable Square Feet	3,554,000		3,553,000		3,554,000		3,554,000		3,810,000
	Occupancy	91.5	%	88.1	%	86.5	%	86.6	%	86.1	%
	Current Properties 2/	91.5	%	88.1	%	86.5	%	86.6	%	86.6	%
Richmond	Rentable Square Feet	2,134,000		2,024,000		2,024,000		2,024,000		2,024,000
	Occupancy	92.5	%	91.8	%	90.0	%	89.8	%	89.8	%
	Current Properties 2/	92.3	%	91.6	%	89.9	%	89.6	%	89.7	%
Tampa	Rentable Square Feet	2,418,000		2,418,000		2,418,000		2,418,000		2,332,000
	Occupancy	95.0	%	95.6	%	96.5	%	98.2	%	97.7	%
	Current Properties 2/	94.8	%	95.4	%	96.4	%	98.1	%	97.7	%
Total 4/	Rentable Square Feet	26,513,000		26,163,000		26,691,000		26,660,000		26,752,000
	Occupancy	92.0	%	90.4	%	89.3	%	90.2	%	90.0	%
	Current Properties 2/	91.8	%	90.5	%	89.8	%	90.5	%	90.8	%

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 12/31/07

Leasing Statistics

Office Portfolio 1/

	Three Months Ended
	12/31/07 2/			9/30/07 3/			6/30/07 4/			3/31/07 5/			12/31/06 6/			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		126			121			166			130			137			136
Rentable square footage leased		920,405			1,125,050			865,958			726,080			868,941			901,287
Square footage of Renewal Deals		730,702			720,127			590,542			451,125			601,796			618,858
Renewed square footage (% of total)		79.4	%		64.0	%		68.2	%		62.1	%		69.3	%		68.7	%
New Leases square footage (% of total)		20.6	%		36.0	%		31.8	%		37.9	%		30.7	%		31.3	%
Weighted average per rentable square foot over the lease term:
Base rent	$	19.35		$	19.32		$	20.13		$	18.25		$	19.72		$	19.35
Tenant improvements		(1.64	)		(0.93	)		(2.00	)		(1.70	)		(1.77	)		(1.61	)
Leasing commissions 7/		(0.62	)		(0.51	)		(0.63	)		(0.59	)		(0.56	)		(0.58	)
Rent concessions		(0.19	)		(0.40	)		(0.21	)		(0.06	)		(0.22	)		(0.22	)
Effective rent		16.90			17.48			17.29			15.90			17.17			16.94
Expense stop		(6.05	)		(6.31	)		(6.04	)		(5.06	)		(5.45	)		(5.78	)
Equivalent effective net rent	$	10.85		$	11.17		$	11.25		$	10.84		$	11.72		$	11.16
Weighted average term in years		4.4			4.6			4.5			5.0			5.2			4.7
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	7,696,269		$	6,513,821		$	8,589,754		$	7,604,253		$	9,392,949		$	7,959,409
Rentable square feet		920,405			1,125,050			865,958			726,080			868,941			901,287
Per rentable square foot	$	8.36		$	5.79		$	9.92		$	10.47		$	10.81		$	8.83
Leasing Commissions:
Total dollars committed under signed leases 7/	$	2,719,401		$	2,747,213		$	2,303,936		$	2,107,213		$	2,256,508		$	2,426,854
Rentable square feet		920,405			1,125,050			865,958			726,080			868,941			901,287
Per rentable square foot	$	2.95		$	2.44		$	2.66		$	2.90		$	2.60		$	2.69
Total:
Total dollars committed under signed leases	$	10,415,670		$	9,261,034		$	10,893,690		$	9,711,466		$	11,649,457		$	10,386,263
Rentable square feet		920,405			1,125,050			865,958			726,080			868,941			901,287
Per rentable square foot	$	11.32		$	8.23		$	12.58		$	13.38		$	13.41		$	11.52

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

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

4/ Includes 213K square feet of leases that start in 2009 or later.

5/ Includes 98K square feet of leases that start in 2009 or later.

6/ Includes 17K square feet of leases that start in 2009 or later.

7/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. 13 12/31/07

Leasing Statistics

Industrial Portfolio

	Three Months Ended
	12/31/07			9/30/07			6/30/07 1/			3/31/07			12/31/06			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		10			8			18			14			17			13
Rentable square footage leased		694,808			115,617			575,033			188,562			539,939			422,792
Square footage of Renewal Deals		538,836			73,793			489,312			175,579			315,423			318,589
Renewed square footage (% of total)		77.6	%		63.8	%		85.1	%		93.1	%		58.4	%		75.4	%
New Leases square footage (% of total)		22.4	%		36.2	%		14.9	%		6.9	%		41.6	%		24.6	%
Weighted average per rentable square foot over the lease term:
Base rent	$	4.03		$	7.53		$	3.82		$	4.63		$	3.81		$	4.76
Tenant improvements		(0.04	)		(0.71	)		(0.23	)		(0.20	)		(0.45	)		(0.33	)
Leasing commissions 2/		(0.05	)		(0.14	)		(0.06	)		(0.04	)		(0.14	)		(0.09	)
Rent concessions		0.00			(0.10	)		(0.05	)		(0.02	)		(0.05	)		(0.04	)
Effective rent		3.94			6.58			3.48			4.37			3.17			4.30
Expense stop		(0.05	)		(1.04	)		(0.19	)		(0.24	)		(0.08	)		(0.32	)
Equivalent effective net rent	$	3.89		$	5.54		$	3.29		$	4.13		$	3.09		$	3.98
Weighted average term in years		2.6			4.3			2.3			2.5			5.2			3.4
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	40,925		$	424,840		$	528,135		$	142,102		$	1,323,790		$	491,958
Rentable square feet		694,808			115,617			575,033			188,562			539,939			422,792
Per rentable square foot	$	0.06		$	3.67		$	0.92		$	0.75		$	2.45		$	1.16
Leasing Commissions:
Total dollars committed under signed leases 2/	$	136,633		$	74,106		$	142,246		$	23,647		$	433,927		$	162,112
Rentable square feet		694,808			115,617			575,033			188,562			539,939			422,792
Per rentable square foot	$	0.20		$	0.64		$	0.25		$	0.13		$	0.80		$	0.38
Total:
Total dollars committed under signed leases	$	177,558		$	498,945		$	670,380		$	165,749		$	1,757,717		$	654,070
Rentable square feet		694,808			115,617			575,033			188,562			539,939			422,792
Per rentable square foot	$	0.26		$	4.32		$	1.17		$	0.88		$	3.26		$	1.55

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

2/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. 14 12/31/07

Leasing Statistics

Retail Portfolio

	Three Months Ended
	12/31/07 1/			9/30/07			6/30/07			3/31/07 2/			12/31/06			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		12			8			8			9			8			9
Rentable square footage leased		44,509			24,629			14,721			41,357			23,748			29,793
Square footage of Renewal Deals		37,318			18,097			7,072			39,171			9,855			22,303
Renewed square footage (% of total)		83.8	%		73.5	%		48.0	%		94.7	%		41.5	%		74.9	%
New Leases square footage (% of total)		16.2	%		26.5	%		52.0	%		5.3	%		58.5	%		25.1	%
Weighted average per rentable square foot over the lease term:
Base rent	$	20.44		$	24.06		$	33.29		$	23.23		$	18.27		$	23.86
Tenant improvements		(1.46	)		(1.17	)		(2.57	)		(0.12	)		(0.08	)		(1.08	)
Leasing commissions 3/		(0.26	)		(0.46	)		(1.25	)		(0.24	)		(0.41	)		(0.52	)
Rent concessions		0.00			0.00			0.00			0.00			(0.20	)		(0.04	)
Effective rent		18.72			22.43			29.47			22.87			17.58			22.22
Expense stop		0.00			0.00			0.00			0.00			0.00			0.00
Equivalent effective net rent	$	18.72		$	22.43		$	29.47		$	22.87		$	17.58		$	22.22
Weighted average term in years		5.6			6.1			7.0			4.2			8.6			6.3
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	509,473		$	260,407		$	335,337		$	27,507		$	15,000		$	229,545
Rentable square feet		44,509			24,629			14,721			41,357			23,748			29,793
Per rentable square foot	$	11.45		$	10.57		$	22.78		$	0.67		$	0.63		$	7.70
Leasing Commissions:
Total dollars committed under signed leases 3/	$	21,542		$	17,601		$	83,077		$	1,981		$	1,981		$	25,236
Rentable square feet		44,509			24,629			14,721			41,357			23,748			29,793
Per rentable square foot	$	0.48		$	0.71		$	5.64		$	0.05		$	0.08		$	0.85
Total:
Total dollars committed under signed leases	$	531,015		$	278,008		$	418,414		$	29,488		$	16,981		$	254,781
Rentable square feet		44,509			24,629			14,721			41,357			23,748			29,793
Per rentable square foot	$	11.93		$	11.29		$	28.42		$	0.71		$	0.72		$	8.55

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

2/ Includes 17K square feet of leases that start in 2009 or later.

3/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. 15 12/31/07

Leasing Statistics by Market

For the Three Months Ended As of 12/31/07

Office Portfolio 1/

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI's Per SF		Lease Commissions Per SF 2/
Atlanta	278,800	5.2	$	19.24	$	7.78	$	3.60
Piedmont Triad	181,437	3.4		16.13		9.22		2.02
Raleigh	88,775	3.3		20.45		3.52		2.07
Richmond	81,790	2.7		19.79		2.82		0.53
Nashville	79,107	4.6		20.24		4.25		2.62
Memphis	68,497	3.9		21.37		9.52		1.78
Kansas City	61,161	6.0		20.48		14.33		4.44
Greenville	54,600	5.0		16.73		17.13		5.02
Tampa	26,238	7.6		25.11		19.51		7.58
	920,405	4.4	$	19.16	$	8.36	$	2.95

Industrial Portfolio

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI's Per SF		Lease Commissions Per SF 2/
Piedmont Triad	414,043	1.9	$	3.73	$	0.04	$	0.12
Atlanta	280,765	3.6		4.48		0.09		0.30
	694,808	2.6	$	4.03	$	0.06	$	0.20

Retail Portfolio

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI's Per SF		Lease Commissions Per SF 2/
Kansas City	44,509	5.6	$	20.44	$	11.45	$	0.48
	44,509	5.6	$	20.44	$	11.45	$	0.48

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 commisions per square foot excludes capitalized internal leasing costs.

Highwoods Properties, Inc. 16 12/31/07

Rental Rate Comparisons by Market

For the Three Months Ended As of 12/31/07

Office Portfolio 1/

Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Atlanta	278,800	$	19.24	$	17.76	8.3	%
Piedmont Triad	181,437		16.13		16.08	0.3	%
Raleigh	88,775		20.45		17.52	16.7	%
Richmond	81,790		19.79		18.75	5.5	%
Nashville	79,107		20.24		19.58	3.4	%
Memphis	68,497		21.37		18.95	12.8	%
Kansas City	61,161		20.48		19.62	4.4	%
Greenville	54,600		16.73		18.17	-7.9	%
Tampa	26,238		25.11		20.95	19.9	%
GAAP Rent Growth	920,405	$	19.16	$	18.00	6.4	%
Cash Rent Growth	920,405	$	18.48	$	19.21	-3.8	%

Industrial Portfolio

Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Piedmont Triad	414,043	$	3.73	$	3.16	18.0	%
Atlanta	280,765		4.48		4.55	-1.5	%
GAAP Rent Growth	694,808	$	4.03	$	3.72	8.4	%
Cash Rent Growth	694,808	$	3.94	$	3.87	2.0	%

Retail Portfolio

Market	Rentable Square Feet Leased	Current Rent		Previous Rent 2/		Percentage Change Rent
Kansas City	44,509	$	20.44	$	21.05	-2.9	%
GAAP Rent Growth	44,509	$	20.44	$	21.05	-2.9	%
Cash Rent Growth	44,509	$	19.93	$	20.56	-3.1	%

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

Type	12/31/07			12/31/06			12/31/05			12/31/04			12/31/03
Office	$	19.14		$	18.57		$	17.57		$	17.49		$	17.42
Industrial		5.07			5.14			4.76			4.59			4.74
Retail 2/		31.20			29.66			27.61			26.35			24.45
Weighted average rate	$	16.27		$	15.89		$	14.99		$	14.76		$	14.70
Annual % growth rate		2.4	%		6.0	%		1.6	%		0.4	%

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 December, 2007 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 12/31/07

Lease Expirations

December 31, 2007

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	1,880,418	10.6	%	$	36,172	$	19.24	10.6	%
2009	2,286,375	12.9	%		45,364		19.84	13.3	%
2010	2,459,056	13.8	%		51,751		21.05	15.3	%
2011	2,623,730	14.7	%		50,524		19.26	14.8	%
2012	2,284,521	12.8	%		46,373		20.30	13.6	%
2013	1,316,694	7.4	%		24,703		18.76	7.3	%
2014	1,320,510	7.4	%		22,129		16.76	6.5	%
2015	962,435	5.4	%		19,303		20.06	5.7	%
2016	740,354	4.2	%		13,734		18.55	4.0	%
2017	934,673	5.3	%		17,957		19.21	5.3	%
2018 and thereafter	979,698	5.5	%		12,380		12.64	3.6	%
	17,788,464	100.0	%	$	340,390	$	19.14	100.0	%
Industrial:
2008 /4	632,195	10.2	%	$	3,463	$	5.48	11.0	%
2009	1,114,535	17.8	%		5,883		5.28	18.7	%
2010	834,512	13.4	%		4,376		5.24	13.9	%
2011	1,061,883	17.1	%		5,285		4.98	16.7	%
2012	427,636	6.9	%		2,462		5.76	7.8	%
2013	442,636	7.1	%		2,480		5.60	7.9	%
2014	414,465	6.7	%		1,786		4.31	5.7	%
2015	271,382	4.4	%		983		3.62	3.1	%
2016	264,597	4.3	%		991		3.75	3.1	%
2017	149,600	2.4	%		722		4.83	2.3	%
2018 and thereafter	604,640	9.7	%		3,103		5.13	9.8	%
	6,218,081	100.0	%	$	31,534	$	5.07	100.0	%

1/ Annualized Cash Revenue is December, 2007 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 53,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

4/ Includes 61,000 square feet of leases that are on a month to month basis or 0.0% 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 12/31/07

Lease Expirations

December 31, 2007

(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/	108,599	8.7	%	$	2,693	$	24.80	6.9	%
2009	130,487	10.4	%		4,113		31.52	10.5	%
2010	96,255	7.7	%		3,765		39.11	9.6	%
2011	58,702	4.7	%		1,895		32.28	4.9	%
2012	165,979	13.3	%		5,042		30.38	12.9	%
2013	69,296	5.5	%		2,601		37.53	6.7	%
2014	97,976	7.8	%		2,218		22.64	5.7	%
2015	147,338	11.8	%		4,556		30.92	11.7	%
2016	65,526	5.2	%		2,639		40.27	6.8	%
2017	110,420	8.8	%		2,782		25.19	7.1	%
2018 and thereafter	200,336	16.1	%		6,730		33.59	17.2	%
	1,250,914	100.0	%	$	39,034	$	31.20	100.0	%
Total:
2008 3/ 4/	2,621,212	10.4	%	$	42,328	$	16.15	10.3	%
2009	3,531,397	14.0	%		55,360		15.68	13.5	%
2010	3,389,823	13.4	%		59,892		17.67	14.7	%
2011	3,744,315	14.8	%		57,704		15.41	14.0	%
2012	2,878,136	11.4	%		53,877		18.72	13.1	%
2013	1,828,626	7.2	%		29,784		16.29	7.2	%
2014	1,832,951	7.3	%		26,133		14.26	6.4	%
2015	1,381,155	5.5	%		24,842		17.99	6.0	%
2016	1,070,477	4.2	%		17,364		16.22	4.2	%
2017	1,194,693	4.7	%		21,461		17.96	5.2	%
2018 and thereafter	1,784,674	7.1	%		22,213		12.45	5.4	%
	25,257,459	100.0	%	$	410,958	$	16.27	100.0	%

1/ Annualized Cash Revenue is December, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/ Includes 13,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

3/ Includes 127,000 square feet of leases that are on a month to month basis or 0.4% 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 12/31/07

Office Lease Expirations by Market by Quarter 1/

Dollars in thousands

			Three Months Ended
			3/31/08 2/			06/30/08			09/30/08			12/31/08			Total
Atlanta	RSF			340,631			2,840			144,708			12,991			501,170
	% of Total Office RSF			1.9	%		0.0	%		0.8	%		0.1	%		2.8	%
	Annualized Cash Revenue	3/	$	5,518		$	67		$	2,770		$	210		$	8,565
	% of Total Office Annl Cash Rev			1.6	%		0.0	%		0.8	%		0.1	%		2.5	%
Greenville	RSF			4,150			0			19,763			0			23,913
	% of Total Office RSF			0.0	%		0.0	%		0.1	%		0.0	%		0.1	%
	Annualized Cash Revenue	3/	$	83		$	—		$	383		$	—		$	466
	% of Total Office Annl Cash Rev			0.0	%		0.0	%		0.1	%		0.0	%		0.1	%
Kansas City	RSF			20,375			10,338			18,521			30,040			79,274
	% of Total Office RSF			0.1	%		0.1	%		0.1	%		0.2	%		0.4	%
	Annualized Cash Revenue	3/	$	441		$	199		$	395		$	615		$	1,650
	% of Total Office Annl Cash Rev			0.1	%		0.1	%		0.1	%		0.2	%		0.5	%
Memphis	RSF			58,211			25,924			15,681			35,892			135,708
	% of Total Office RSF			0.3	%		0.1	%		0.1	%		0.2	%		0.8	%
	Annualized Cash Revenue	3/	$	1,225		$	524		$	312		$	744		$	2,805
	% of Total Office Annl Cash Rev			0.4	%		0.2	%		0.1	%		0.2	%		0.8	%
Nashville	RSF			22,593			39,651			45,313			38,714			146,271
	% of Total Office RSF			0.1	%		0.2	%		0.3	%		0.2	%		0.8	%
	Annualized Cash Revenue	3/	$	345		$	772		$	896		$	888		$	2,901
	% of Total Office Annl Cash Rev			0.1	%		0.2	%		0.3	%		0.3	%		0.9	%
Orlando	RSF			9,950			0			0			0			9,950
	% of Total Office RSF			0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
	Annualized Cash Revenue	3/	$	270		$	—		$	—		$	—		$	270
	% of Total Office Annl Cash Rev			0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
Piedmont Triad	RSF			99,888			23,907			24,642			16,079			164,516
	% of Total Office RSF			0.6	%		0.1	%		0.1	%		0.1	%		0.9	%
	Annualized Cash Revenue	3/	$	1,776		$	297		$	494		$	275		$	2,842
	% of Total Office Annl Cash Rev			0.5	%		0.1	%		0.1	%		0.1	%		0.8	%
Raleigh	RSF			174,374			46,740			190,017			45,480			456,611
	% of Total Office RSF			0.9	%		0.3	%		1.1	%		0.3	%		2.5	%
	Annualized Cash Revenue	3/	$	3,016		$	896		$	4,352		$	854		$	9,118
	% of Total Office Annl Cash Rev			0.9	%		0.3	%		1.3	%		0.3	%		2.7	%
Richmond	RSF			89,784			34,907			91,231			10,610			226,532
	% of Total Office RSF			0.5	%		0.2	%		0.5	%		0.1	%		1.3	%
	Annualized Cash Revenue	3/	$	1,774		$	684		$	1,786		$	192		$	4,436
	% of Total Office Annl Cash Rev			0.5	%		0.2	%		0.5	%		0.1	%		1.3	%
Tampa	RSF			22,872			38,985			50,359			13,443			125,659
	% of Total Office RSF			0.1	%		0.2	%		0.3	%		0.1	%		0.7	%
	Annualized Cash Revenue	3/	$	504		$	939		$	1,036		$	334		$	2,813
	% of Total Office Annl Cash Rev			0.1	%		0.3	%		0.3	%		0.1	%		0.8	%
Other	RSF			6,382			4,432			0			0			10,814
	% of Total Office RSF			0.0	%		0.0	%		0.0	%		0.0	%		0.1	%
	Annualized Cash Revenue	3/	$	191		$	117		$	—		$	—		$	308
	% of Total Office Annl Cash Rev			0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
Total	RSF			849,210			227,724			600,235			203,249			1,880,418
	% of Total Office RSF			4.7	%		1.3	%		3.4	%		1.1	%		10.5	%
	Annualized Cash Revenue	3/	$	15,143		$	4,495		$	12,424		$	4,112		$	36,174
	% of Total Office Annl Cash Rev			4.4	%		1.3	%		3.6	%		1.2	%		10.6	%

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 53,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

3/ Annualized Cash Revenue is December, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 20 12/31/07

Industrial Lease Expirations by Market by Quarter

Dollars in thousands

			Three Months Ended
			3/31/08 1/			06/30/08			09/30/08			12/31/08			Total
Atlanta	RSF			41,767			43,000			115,423			0			200,190
	% of Total Industrial RSF			0.7	%		0.7	%		1.9	%		0.0	%		3.2	%
	Annualized Cash Revenue	2/	$	178		$	260		$	667		$	—		$	1,105
	% of Total Industrial Annl Cash Rev			0.6	%		0.8	%		2.1	%		0.0	%		3.6	%
Kansas City	RSF			0			0			0			0			0
	% of Total Industrial RSF			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Cash Revenue	2/	$	—		$	—		$	—		$	—		$	—
	% of Total Industrial Annl Cash Rev			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Piedmont Triad	RSF			333,944			13,092			5,209			79,760			432,005
	% of Total Industrial RSF			5.4	%		0.2	%		0.1	%		1.3	%		6.9	%
	Annualized Cash Revenue	2/	$	1,601		$	194		$	56		$	509		$	2,360
	% of Total Industrial Annl Cash Rev			5.1	%		0.6	%		0.2	%		1.6	%		7.5	%
Total	RSF			375,711			56,092			120,632			79,760			632,195
	% of Total Industrial RSF			6.0	%		0.9	%		1.9	%		1.3	%		10.2	%
	Annualized Cash Revenue	2/	$	1,779		$	454		$	723		$	509		$	3,465
	% of Total Industrial Annl Cash Rev			5.7	%		1.4	%		2.3	%		1.6	%		11.0	%

1/ Includes 61,000 square feet of leases that are on a month to month basis or 0.0% of total annualized revenue.

2/ Annualized Cash Revenue is December, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 21 12/31/07

Office Lease Expirations by Market by Year 1/

Dollars in thousands

			2008 2/			2009			2010			2011			Thereafter
Atlanta	RSF			501,170			132,610			96,764			303,613			1,201,500
	% of Total Office RSF			2.8	%		0.7	%		0.5	%		1.7	%		6.8	%
	Annualized Cash Revenue	3/	$	8,564		$	1,987		$	1,924		$	6,402		$	20,895
	% of Total Office Annl Cash Rev			2.5	%		0.6	%		0.6	%		1.9	%		6.1	%
Greenville	RSF			23,913			60,122			53,206			120,645			510,014
	% of Total Office RSF			0.1	%		0.3	%		0.3	%		0.7	%		2.9	%
	Annualized Cash Revenue	3/	$	467		$	1,027		$	896		$	2,130		$	8,911
	% of Total Office Annl Cash Rev			0.1	%		0.3	%		0.3	%		0.6	%		2.6	%
Kansas City	RSF			79,274			106,255			123,061			100,199			359,360
	% of Total Office RSF			0.4	%		0.6	%		0.7	%		0.6	%		2.0	%
	Annualized Cash Revenue	3/	$	1,650		$	2,115		$	3,230		$	2,301		$	8,700
	% of Total Office Annl Cash Rev			0.5	%		0.6	%		0.9	%		0.7	%		2.6	%
Memphis	RSF			135,708			169,320			212,008			164,119			529,055
	% of Total Office RSF			0.8	%		1.0	%		1.2	%		0.9	%		3.0	%
	Annualized Cash Revenue	3/	$	2,806		$	3,372		$	4,378		$	3,064		$	10,263
	% of Total Office Annl Cash Rev			0.8	%		1.0	%		1.3	%		0.9	%		3.0	%
Nashville	RSF			146,271			575,544			483,769			373,387			1,447,802
	% of Total Office RSF			0.8	%		3.2	%		2.7	%		2.1	%		8.1	%
	Annualized Cash Revenue	3/	$	2,901		$	11,609		$	9,666		$	7,467		$	23,089
	% of Total Office Annl Cash Rev			0.9	%		3.4	%		2.8	%		2.2	%		6.8	%
Orlando	RSF			9,950			11,482			77,080			106,313			28,884
	% of Total Office RSF			0.1	%		0.1	%		0.4	%		0.6	%		0.2	%
	Annualized Cash Revenue	3/	$	270		$	265		$	1,755		$	2,218		$	711
	% of Total Office Annl Cash Rev			0.1	%		0.1	%		0.5	%		0.7	%		0.2	%
Piedmont Triad	RSF			164,516			141,899			239,259			419,706			791,323
	% of Total Office RSF			0.9	%		0.8	%		1.3	%		2.4	%		4.4	%
	Annualized Cash Revenue	3/	$	2,842		$	2,302		$	3,742		$	6,309		$	12,718
	% of Total Office Annl Cash Rev			0.8	%		0.7	%		1.1	%		1.9	%		3.7	%
Raleigh	RSF			456,611			474,752			376,259			548,393			1,524,978
	% of Total Office RSF			2.6	%		2.7	%		2.1	%		3.1	%		8.6	%
	Annualized Cash Revenue	3/	$	9,117		$	9,617		$	7,035		$	11,142		$	26,864
	% of Total Office Annl Cash Rev			2.7	%		2.8	%		2.1	%		3.3	%		7.9	%
Richmond	RSF			226,532			213,409			250,144			389,191			911,980
	% of Total Office RSF			1.3	%		1.2	%		1.4	%		2.2	%		5.1	%
	Annualized Cash Revenue	3/	$	4,436		$	4,134		$	4,703		$	7,274		$	16,064
	% of Total Office Annl Cash Rev			1.3	%		1.2	%		1.4	%		2.1	%		4.7	%
Tampa	RSF			125,659			394,197			516,525			96,584			1,214,672
	% of Total Office RSF			0.7	%		2.2	%		2.9	%		0.5	%		6.8	%
	Annualized Cash Revenue	3/	$	2,812		$	8,808		$	13,738		$	2,161		$	27,788
	% of Total Office Annl Cash Rev			0.8	%		2.6	%		4.0	%		0.6	%		8.2	%
Other	RSF			10,814			6,785			30,981			1,580			19,317
	% of Total Office RSF			0.1	%		0.0	%		0.2	%		0.0	%		0.1	%
	Annualized Cash Revenue	3/	$	308		$	130		$	684		$	56		$	572
	% of Total Office Annl Cash Rev			0.1	%		0.0	%		0.2	%		0.0	%		0.2	%
Total	RSF			1,880,418			2,286,375			2,459,056			2,623,730			8,538,885
	% of Total Office RSF			10.6	%		12.9	%		13.8	%		14.7	%		48.0	%
	Annualized Cash Revenue	3/	$	36,173		$	45,366		$	51,751		$	50,524		$	156,575
	% of Total Office Annl Cash Rev			10.6	%		13.3	%		15.1	%		14.8	%		46.1	%

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 53,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

3/ Annualized Cash Revenue is December, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 22 12/31/07

Industrial Lease Expirations by Market by Year

Dollars in thousands

			2008 1/			2009			2010			2011			Thereafter
Atlanta	RSF			200,190			327,755			316,221			670,900			1,398,951
	% of Total Industrial RSF			3.2	%		5.3	%		5.1	%		10.8	%		22.5	%
	Annualized Cash Revenue	2/	$	1,103		$	2,117		$	1,824		$	3,733		$	6,898
	% of Total Industrial Annl Cash Rev			3.5	%		6.7	%		5.8	%		11.8	%		21.9	%
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			432,005			785,024			518,291			390,983			1,176,005
	% of Total Industrial RSF			6.9	%		12.6	%		8.3	%		6.3	%		18.9	%
	Annualized Cash Revenue	2/	$	2,360		$	3,746		$	2,552		$	1,552		$	5,629
	% of Total Industrial Annl Cash Rev			7.5	%		11.9	%		8.1	%		4.9	%		17.9	%
Total	RSF			632,195			1,114,535			834,512			1,061,883			2,574,956
	% of Total Industrial RSF			10.2	%		17.9	%		13.4	%		17.1	%		41.4	%
	Annualized Cash Revenue	2/	$	3,463		$	5,883		$	4,376		$	5,285		$	12,527
	% of Total Industrial Annl Cash Rev			11.0	%		18.7	%		13.9	%		16.8	%		39.7	%

1/ Includes 61,000 square feet of leases that are on a month to month basis or 0.0% of total annualized revenue.

2/ Annualized Cash Revenue is December, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 23 12/31/07

Customer Diversification 1/

December 31, 2007

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	1,746,749	$	31,626	7.62	%	8.3
AT&T	656,905		12,936	3.12	%	2.8
Price Waterhouse Coopers	358,611		9,781	2.36	%	2.3
State of Georgia	367,986		7,664	1.85	%	2.5
T-Mobile USA	207,517		5,680	1.37	%	5.9
Metropolitan Life Insurance	262,586		5,022	1.21	%	10.0
Lockton Companies	156,255		4,090	0.99	%	7.2
Volvo	278,940		3,947	0.95	%	4.0
Syniverse Technologies	198,750		3,931	0.95	%	8.8
BB&T	238,595		3,768	0.91	%	5.0
Northern Telecom	246,000		3,651	0.88	%	0.2
Fluor Enterprises	205,036		3,625	0.87	%	4.1
SCI Services 3/	162,784		3,605	0.87	%	9.6
US Airways	182,775		3,139	0.76	%	3.7
Jacobs Engineering Group	181,794		2,918	0.70	%	7.7
Vanderbilt University	144,161		2,825	0.68	%	7.8
Lifepoint Corporate Services	129,217		2,549	0.61	%	3.5
Talecris Biotherapeutics	132,624		2,531	0.61	%	4.2
Icon Clinical Research	110,909		2,422	0.58	%	5.6
Wachovia	107,487		2,405	0.58	%	2.5
	6,075,681	$	118,115	28.47	%	5.6

By Industry

Category	Percent of Annualized Cash Revenue 2/
Professional, Scientific, and Technical Services	20.1	%
Finance/Banking	9.8	%
Government/Public Administration	9.8	%
Insurance	9.1	%
Retail Trade	7.6	%
Telecommunication	6.8	%
Manufacturing	6.5	%
Wholesale Trade	6.0	%
Health Care and Social Assistance	5.6	%
Real Estate Rental and Leasing	4.2	%
Administrative and Support Services	2.9	%
Accommodation and Food Services	2.8	%
Information	2.8	%
Transportation and Warehousing	2.6	%
Other Services (except Public Administration)	2.2	%
Educational Services	1.2	%
	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 December, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

3/ Morgan Stanley acquired SCI Services (Saxon Capital, Inc.) on December 4, 2006.

Highwoods Properties, Inc. 24 12/31/07

Same Property Performance

Dollars in thousands

	Three months ended December,						Percentage Change
	2007			2006
Rental revenues 1/	$	100,632		$	97,531		3.2	%
Operating expenses		(38,976	)		(37,347	)	-4.4	%
		61,656			60,184		2.4	%
Straight line rent		2,040			1,569		30.1	%
Lease termination fees		836			2,167		-61.4	%
Net operating income	$	64,532		$	63,920		1.0	%
Average occupancy		91.3	%		90.2	%	1.2	%
Rentable square feet		25,579,000			25,579,000
	Twelve months ended December,						Percentage Change
	2007			2006
Rental revenues 1/	$	396,588		$	379,540		4.5	%
Operating expenses		(149,322	)		(142,188	)	-5.0	%
		247,266			237,352		4.2	%
Straight line rent		2,732			7,302		-62.6	%
Lease termination fees		2,602			3,523		-26.1	%
Net operating income	$	252,600		$	248,177		1.8	%
Average occupancy		90.5	%		89.4	%	1.3	%
Rentable square feet		25,579,000			25,579,000

	Fourth Quarter: 2007 vs 2006				December YTD: 2007 vs 2006
Market	NOI 2/ Percentage Change		Occupancy Percentage Change		NOI 2/ Percentage Change		Occupancy Percentage Change
Atlanta	7.4	%	-0.6	%	4.6	%	1.0	%
Greenville	18.6	%	6.6	%	11.0	%	6.6	%
Kansas City	.06	%	-0.2	%	1.5	%	-0.4	%
Memphis	-3.7	%	2.3	%	0.0	%	2.0	%
Nashville	5.9	%	2.2	%	2.1	%	0.7	%
Orlando	11.5	%	0.0	%	-1.6	%	-1.3	%
Piedmont Triad	-1.3	%	-1.2	%	-6.2	%	-0.9	%
Raleigh	-6.8	%	8.3	%	2.4	%	5.5	%
Richmond	1.5	%	3.0	%	1.8	%	0.8	%
Tampa	-6.4	%	-2.6	%	3.8	%	1.2	%
	1.0	%	1.2	%	1.8	%	1.3	%

1/ Excludes straight line rents and lease termination fees.

2/ Includes straight line rents and lease termination fees.

Highwoods Properties, Inc. 25 12/31/07

Disposition Activity

Dollars in thousands

Name	Market	Type 1/	Date Sold	Square Footage	Occupancy		Gross Sales Price
First quarter 2007:
1740-90 Century Center	Atlanta	O	01/17/07	69,000	N/A	2/	$	9,530
Red Oak	Raleigh	O	02/02/07	65,000	68.6	%
Laurel	Raleigh	O	02/02/07	40,000	85.2	%
Global Software	Raleigh	O	02/02/07	93,000	90.4	%
Magnolia	Raleigh	O	02/02/07	59,000	68.1	%
				257,000	79.0	%	$	30,416
First quarter totals				326,000	79.0	%	$	39,946
Second quarter 2007:
Colonial Shops	Kansas City	R	04/25/07	9,000	100.0	%	$	1,001
Second quarter totals				9,000	100.0	%	$	1,001
Third quarter 2007:
EKA Chemical	Atlanta	O	09/05/07	80,000	100.0	%	$	9,550
Oakbrook Summit	Atlanta	I	09/12/07	234,000	95.7	%	$	11,625
Patewood VII	Greenville	O	09/13/07	72,000	43.0	%
770 Pelham Road	Greenville	O	09/13/07	38,000	96.2	%
				110,000	61.4	%	$	11,600
Patewood Business Center	Greenville	I	09/17/07	103,000	25.4	%	$	4,050
Third quarter totals				527,000	75.4	%	$	36,825
Fourth quarter 2007:
Lakeview Ridge I	Nashville	O	11/02/07	100,000	100.0	%	$	10,900
125 Business Park Drive (ALO)	Triad (Winston-Salem)	I	12/13/07	27,000	100.0	%	$	1,593
Fontaine I, II, III, and IV	Columbia	O	12/14/07	253,000	82.5	%	$	23,637
Fourth quarter totals				380,000	88.3	%	$	36,130
2007 totals				1,242,000	80.6	%	$	113,902

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

2/ This property was scheduled for demolition after its disposition. All tenants vacated this property and it was removed from Highwoods' in-service portfolio prior to 12/31/06, thus it is excluded from all occupancy calculations.

Highwoods Properties, Inc. 26 12/31/07

Development Activity

Dollars in thousands

Property	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 12/31/07			Pre Leased %	Estimated Completion Date	Estimated Stabilization Date
In - Process Office:
FAA	Atlanta	O	50,000	$	10,213	$	1,844		100%	2Q 08	2Q 08
Jackson FBI	Jackson, MS	O	110,000		31,713		2,418		100%	1Q 09	1Q 09
Comcast	Memphis	O	62,000		9,449		3,704		100%	3Q 08	3Q 08
Cool Springs IV	Nashville	O	153,000		27,597		8,932		0%	3Q 08	1Q 10
Centregreen V	Raleigh	O	98,000		15,662		11,076		51%	1Q 08	3Q 09
Glenlake VI	Raleigh	O	122,000		24,448		16,852		57%	1Q 08	3Q 09
RBC Plaza 2/	Raleigh	O	292,000		76,056		44,505		65%	4Q 08	4Q 09
Total or Weighted Average			887,000	$	195,138	$	89,331		60%
						$	Weighted	%	63%
For Sale Development:
RBC Plaza Condominiums 3/ 4/	Raleigh	RC	139 Units	$	42,380	$	11,948		139 Contracts	4Q 08	2Q 09
hhgregg ®	Piedmont Triad	R	30,000		5,125		2,070		100%	2Q 08	2Q 08
			30,000	$	47,505	$	14,018		100%
In-Process Total or Weighted Average 4/			917,000	$	242,643	$	103,349		61%
						$	Weighted	%	64%
Completed Not Stabilized 5/
Office:
Cordoba	Kansas City	O	46,000	$	6,700	$	6,579		84%	4Q 06	1Q 08
Berkshire	Orlando	O	99,000		15,096		13,845		100%	3Q 07	2Q 08
Glenlake IV	Raleigh	O	158,000		27,311		25,126		74%	3Q 06	1Q 08
North Shore Commons II	Richmond	O	96,000		14,855		12,063		46%	1Q 07	2Q 08
Highwoods Baycenter I	Tampa	O	208,000		42,024		37,638		78%	3Q 07	4Q 08
Total or Weighted Average			607,000	$	105,986	$	95,251		76%
						$	Weighted	%	76%
Industrial:
Newpoint V	Atlanta	I	263,000	$	12,947	$	12,259		88%	2Q 07	2Q 08
Enterprise II	Piedmont Triad	I	418,000		17,222		16,110		72%	4Q 06	4Q 08
			681,000	$	30,169	$	28,369		78%
						$	Weighted	%	79%
Completed Not Stabilized Total or Weighted Average			1,288,000	$	136,155	$	123,620		77%
						$	Weighted	%	77%
Grand Total or Weighted Average			2,205,000	$	378,798	$	226,969		71%
						$	Weighted	%	69%

Placed in Service

Property	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 12/31/07			Pre Leased%		Occ%		In-Service Date
ThyssenKrupp	Memphis	O	78,000	$	9,377	$	9,377		100	%	100	%	1/10/2007
Highwoods Preserve VII	Tampa	O	115,000		21,245		20,843		100	%	100	%	2/1/2007	6/
3330 Healy Rd	Piedmont Triad	O	40,000		5,098		4,242		25	%	25	%	6/1/2007
Healthways	Nashville	O	255,000		58,369		52,557		100	%	100	%	10/1/2007
Enterprise III	Piedmont Triad	I	120,000		4,831		4,831		100	%	100	%	10/1/2007
Dept. of Homeland Security	Atlanta	O	91,000		21,773		20,514		100	%	97	%	10/1/2007
Stony Point IV	Richmond	O	107,000		13,228		13,125		96	%	96	%	11/1/2007
Cool Springs III	Nashville	O	153,000		22,911		22,786		100	%	95	%	12/1/2007
Total or Weighted Average			959,000	$	156,832	$	148,275		96	%	95	%
						$	Weighted	%	98	%	96	%

1/ The Letters “O”, “I”, “R” and “RC” represent: Office, Industrial, Retail 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 will have a 93% interest and will consolidate this Joint Venture. The investment amounts shown represent the Company's 93% share.

4/ As of 12/31/07, all units are under contract. Condo units and contract numbers are not part of In-Process Total or Weighted Average for SF & Pre-Leasing percentage.

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

6/ 29,000 sf is leased but will not be occupied until 4Q 08; this 29,000 sf is not included in our In-Service portfolio rentable sf until occupied.

Highwoods Properties, Inc. 27 12/31/07

Development Land

December 31, 2007

Dollars in thousands

Market	Usable Acres	Total Estimated Market Value
Atlanta	242	$	26,865
Raleigh	190		43,616
Greensboro	47		12,487
Baltimore	39		10,700
Richmond	33		8,325
Tampa	26		15,949
Nashville	16		7,859
Memphis	15		3,620
Orlando	15		15,028
Winston-Salem	10		2,138
Kansas City	1		2,100
Total 1/2/	634	$	148,687

1/ Developable square footage on core land holdings, which constitute 493 of the total 634 acres, is approximately 4.9 million of office space and 2.7 million of industrial space.

2/ Includes 40 acres ($10.7 million based on expected gross proceeds) included in property held for sale at December 31, 2007.

Highwoods Properties, Inc. 28 12/31/07

Acquisition Activity

Dollars in thousands

Name	Market	Type	Date Acquired	Square Footage	Total Cost
First quarter 2007:
None
Second quarter 2007:
None
Third quarter 2007:
None
Fourth quarter 2007:
None

Highwoods Properties, Inc. 29 12/31/07

Unconsolidated Joint Ventures Assets, Debt and Liabilities

December 31, 2007

Dollars in thousands

				Venture’s Books
Joint Venture	Type 1/	Own%		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.0	%	$	7,103	$	—	$	378
Dallas County Partners I, LP	O/I	50.0	%		38,016		49,334		52,819
Dallas County Partners II, LP	O	50.0	%		14,948		16,642		18,082
Dallas County Partners III, LP	O	50.0	%		36		—		37
Fountain Three	O/I /R	50.0	%		28,831		32,952		35,143
RRHWoods, LLC	O/M	50.0	%		87,562		80,533		84,824
Kessinger/Hunter, LLC	—	26.5	%		8,260		—		582
4600 Madison Associates, LP	O	12.5	%		18,261		13,560		13,969
Highwoods DLF 98/29, LP	O	22.8	%		153,329		75,688		82,682
Highwoods DLF 97/26 DLF 99/32, LP	O	42.9	%		102,646		55,815		58,996
Concourse Center Associates, LLC	O	50.0	%		13,531		8,911		9,082
Plaza Colonnade, LLC	O/R	50.0	%		73,120		66,842		67,921
Highwoods KC Glenridge Office, LP	O	40.0	%		22,310		16,500		17,022
Highwoods KC Glenridge Land, LP	O	40.0	%		775		—		96
Highwoods KC Orlando, LLC	O	40.0	%		205,703		141,980		149,348
Weston Lakeside, LLC	M	50.0	%		—		—		—
Total				$	774,431	$	558,757	$	590,981
				Highwoods’ Share of Joint Venture
Joint Venture	Type 1/	Own%		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.00	%	$	3,480	$	—	$	185
Dallas County Partners I, LP	O/ I	50.00	%		19,008		24,667		26,410
Dallas County Partners II, LP	O	50.00	%		7,474		8,321		9,041
Dallas County Partners III, LP	O	50.00	%		18		—		19
Fountain Three	O/I /R	50.00	%		14,416		16,476		17,572
RRHWoods, LLC	O/ M	50.00	%		43,781		40,267		42,412
Kessinger/Hunter, LLC	—	26.50	%		2,189		—		154
4600 Madison Associates, LP	O	12.50	%		2,283		1,695		1,746
Highwoods DLF 98/29, LP	O	22.81	%		34,974		17,264		18,860
Highwoods DLF 97/26 DLF 99/32, LP	O	42.93	%		44,066		23,961		25,327
Concourse Center Associates, LLC	O	50.00	%		6,766		4,456		4,541
Plaza Colonnade, LLC	O/R	50.00	%		36,560		33,421		33,961
Highwoods KC Glenridge Office, LP	O	40.00	%		8,924		6,600		6,809
Highwoods KC Glenridge Land, LP	O	40.00	%		310		—		38
Highwoods KC Orlando, LLC	O	40.00	%		82,281		56,792		59,739
Weston Lakeside, LLC	M	50.00	%		—		—		—
Total 2/				$	306,530	$	233,920	$	246,814

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

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

Highwoods Properties, Inc. Page 30 12/31/07

Unconsolidated Joint Ventures Income

For the Three Months Ended December 31, 2007

Dollars in thousands

			Venture’s Books
Joint Venture	Own%		Revenue		Operating Exp		Interest		Depr/Amort		Gain on Sale		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	552	$	393	$	—	$	229	$	—	$	(70	)
Dallas County Partners I, LP	50.00	%		3,430		1,943		776		639		—		72
Dallas County Partners II, LP	50.00	%		1,633		757		417		172		—		287
Dallas County Partners III, LP	50.00	%		49		57		—		1		—		(9	)
Fountain Three	50.00	%		1,906		991		526		411		—		(22	)
RRHWoods, LLC	50.00	%		4,295		2,396		1,075		1,082		—		(258	)
Kessinger/Hunter, LLC	26.50	%		2,121		1,309		—		147		—		665
4600 Madison Associates, LP	12.50	%		1,223		589		237		398		—		(1	)
Highwoods DLF 98/29, LP	22.80	%		4,598		1,486		1,261		1,212		—		639
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		4,258		1,421		1,080		1,018		—		739
Concourse Center Associates, LLC	50.00	%		487		140		162		77		—		108
Plaza Colonnade, LLC	50.00	%		2,514		885		979		556		—		94
Highwoods KC Glenridge Office, LP	40.00	%		825		387		210		164		—		64
Highwoods KC Glenridge Land, LP	40.00	%		—		2		—		—		—		(2	)
Highwoods KC Orlando, LLC	40.00	%		8,197		3,438		1,871		2,054		—		834
Weston Lakeside, LLC	50.00	%		—		—		—		—		—		—
Total			$	36,088	$	16,194	$	8,594	$	8,160	$	—	$	3,140
			Highwoods’ Share of Joint Venture
Joint Venture	Own%		Revenue		Operating Exp		Interest		Depr/Amort		Gain on Sale		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	270	$	192	$	—	$	112	$	—	$	(34	)
Dallas County Partners I, LP	50.00	%		1,715		971		388		320		—		36
Dallas County Partners II, LP	50.00	%		817		378		208		86		—		145
Dallas County Partners III, LP	50.00	%		25		29		—		1		—		(5	)
Fountain Three	50.00	%		953		495		263		205		—		(10	)
RRHWoods, LLC	50.00	%		2,147		1,198		537		541		—		(129	)
Kessinger/Hunter, LLC	26.50	%		562		347		—		39		—		176
4600 Madison Associates, LP	12.50	%		153		74		29		50		—		—
Highwoods DLF 98/29, LP	22.81	%		1,049		339		287		276		—		147
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		1,828		610		464		437		—		317
Concourse Center Associates, LLC	50.00	%		243		70		81		39		—		53
Plaza Colonnade, LLC	50.00	%		1,257		442		489		278		—		48
Highwoods KC Glenridge Office, LP	40.00	%		330		155		84		66		—		25
Highwoods KC Glenridge Land, LP	40.00	%		—		—		—		—		—		—
Highwoods KC Orlando, LLC	40.00	%		3,278		1,375		749		822		—		332
Weston Lakeside, LLC	50.00	%		—		—		—		—		—		—
Total 1/ 2/			$	14,627	$	6,675	$	3,579	$	3,272	$	—	$	1,101

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. Page 31 12/31/07

Unconsolidated Joint Ventures Income

For the Year Ended December 31, 2007

Dollars in thousands

			Venture’s Books
Joint Venture	Own%		Revenue		Operating Exp		Interest		Depr/Amort		Gain on Sale		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	2,278	$	1,715	$	5	$	527	$	—	$	31
Dallas County Partners I, LP	50.00	%		12,479		6,750		3,139		2,475		—		115
Dallas County Partners II, LP	50.00	%		6,255		2,776		1,776		696		—		1,007
Dallas County Partners III, LP	50.00	%		195		223		—		5		—		(33	)
Fountain Three	50.00	%		7,471		3,696		2,207		1,602		—		(34	)
RRHWoods, LLC	50.00	%		16,814		9,154		4,262		4,260		—		(862	)
Kessinger/Hunter, LLC	26.50	%		7,518		5,173		—		621		—		1,724
4600 Madison Associates, LP	12.50	%		4,841		2,269		969		1,668		—		(65	)
Highwoods DLF 98/29, LP	22.80	%		21,241		5,944		4,456		4,824		9,311		15,328
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		16,703		5,539		4,349		4,079		—		2,736
Concourse Center Associates, LLC	50.00	%		2,014		542		654		315		—		503
Plaza Colonnade, LLC	50.00	%		9,697		3,576		3,918		2,153		—		50
Highwoods KC Glenridge Office, LP	40.00	%		3,557		1,630		827		645		—		455
Highwoods KC Glenridge Land, LP	40.00	%		—		36		—		—		—		(36	)
Highwoods KC Orlando, LLC	40.00	%		32,316		12,970		7,504		7,717		—		4,125
Weston Lakeside, LLC	50.00	%		222		201		193		329		11,310		10,809
Total			$	143,601	$	62,194	$	34,259	$	31,916	$	20,621	$	35,853
			Highwoods’ Share of Joint Venture
Joint Venture	Own%		Revenue		Operating Exp		Interest		Depr/Amort		Gain on Sale		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	1,116	$	840	$	2	$	258	$	—	$	16
Dallas County Partners I, LP	50.00	%		6,240		3,375		1,570		1,238		—		57
Dallas County Partners II, LP	50.00	%		3,128		1,388		888		348		—		504
Dallas County Partners III, LP	50.00	%		98		112		—		3		—		(17	)
Fountain Three	50.00	%		3,736		1,848		1,104		801		—		(17	)
RRHWoods, LLC	50.00	%		8,407		4,577		2,131		2,130		—		(431	)
Kessinger/Hunter, LLC	26.50	%		1,992		1,371		—		165		—		456
4600 Madison Associates, LP	12.50	%		605		284		121		209		—		(9	)
Highwoods DLF 98/29, LP	22.81	%		4,845		1,356		1,016		1,100		2,124		3,497
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		7,171		2,378		1,867		1,751		—		1,175
Concourse Center Associates, LLC	50.00	%		1,007		271		327		158		—		251
Plaza Colonnade, LLC	50.00	%		4,849		1,788		1,959		1,077		—		25
Highwoods KC Glenridge Office, LP	40.00	%		1,423		652		331		258		—		182
Highwoods KC Glenridge Land, LP	40.00	%		—		14		—		—		—		(14	)
Highwoods KC Orlando, LLC	40.00	%		12,926		5,188		3,002		3,087		—		1,649
Weston Lakeside, LLC 1/	50.00	%		111		101		97		165		5,034		4,782
Total 2/ 3/			$	57,654	$	25,543	$	14,415	$	12,748	$	7,158	$	12,106

1/ Highwoods’ share of Gain on Sale is less than 50% for Weston Lakeside, LLC due to the preferred return to Crosland as the developer.

2/ 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.

3/ 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. Page 32 12/31/07

Joint Ventures Long-Term Debt Detail 1/

Dollars in thousands

Joint Venture	Own%		Lender	Interest Rate		Maturity Date	Loan Balance 12/31/07
Dallas County Partners I, LP	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18	$	42,054
Dallas County Partners I, LP	50.0	%	Thrivent	8.45	%	Aug-10		1,587
Dallas County Partners I, LP	50.0	%	Regions	6.30	%	Jun-14		3,484
Dallas County Partners I, LP	50.0	%	Sun Life	5.92	%	Feb-16		1,044
Dallas County Partners I, LP	50.0	%	Bankers Trust	8.00	%	Jul-11		1,165
				6.31	%			49,334
Dallas County Partners II, LP	50.0	%	Principal Life Insurance Company	10.19	%	Jun-13		16,642
Fountain Three	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		16,785
Fountain Three	50.0	%	Thrivent	6.01	%	Oct-10		3,709
Fountain Three	50.0	%	Thrivent	6.01	%	Apr-09		3,709
Fountain Three	50.0	%	Lehman Brothers	8.02	%	Jul-09		3,492
Fountain Three	50.0	%	Thrivent	7.00	%	Sep-12		5,257
				6.47	%			32,952
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds 2/	3.38	%	Nov-15		23,000
RRHWoods, LLC	50.0	%	Bank of America	6.80	%	Sep-12		26,459
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds 2/	3.37	%	Sep-15		6,000
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds 2/	3.41	%	Nov-15		5,500
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		4,644
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	5.85	%	Mar-16		7,433
RRHWoods, LLC	50.0	%	UNUM Life Insurance Company	5.67	%	Mar-17		4,013
RRHWoods, LLC	50.0	%	Regions	6.30	%	Jun-14		3,484
				5.14	%			80,533
Plaza Colonnade, LLC	50.0	%	Met Life	5.72	%	Jan-17		48,727
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.38	%	Mar-10		1,818
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	6.00	%	Mar-16		4,394
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.90	%	Mar-24		11,903
				5.76	%			66,842
4600 Madison Associates, LLC	12.5	%	State Farm	6.85	%	Apr-18		13,560
Highwoods DLF 98/29, LP	22.8	%	USG Annuity & Life Company	6.78	%	Apr-11		48,038
Highwoods DLF 98/29, LP	22.8	%	Goldman Sachs	6.11	%	Jul-17		27,650
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%	Massachusetts Mutual Life Ins. Co.	7.66	%	May-12		55,815
Concourse Center Associates, LLC	50.0	%	Lincoln National Life Insurance Co.	6.95	%	Jul-10		8,911
Highwoods KC Orlando, LLC	40.0	%	Met Life	5.21	%	Jul-14		141,980
Highwoods KC Glenridge Office	40.0	%	Wachovia	4.84	%	Jun-14		16,500
				6.07	%			312,454
				6.07	%		$	558,757
Highwoods' share of the above							$	233,920

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

2/ Floating rate loan based on market rates.

Highwoods Properties, Inc. 33 12/31/07

Joint Ventures Portfolio Summary

As of December 31, 2007

Summary by Location:

						Percentage of Annualized Cash Revenue Highwoods' Share Only 1/
Market	Rentable Square Feet	Occupancy		Office		Industrial		Retail		Multi-Family		Total
Des Moines 2/	2,505,000	92.3	%	28.7	%	4.3	%	1.0	%	3.3	%	37.3	%
Orlando	1,853,000	91.2	%	29.1	%	—		—		—		29.1	%
Atlanta	835,000	97.2	%	12.1	%	—		—		—		12.1	%
Kansas City	714,000	83.0	%	8.2	%	—		—		—		8.2	%
Richmond	413,000	100.0	%	5.0	%	—		—		—		5.0	%
Piedmont Triad	364,000	96.9	%	3.4	%	—		—		—		3.4	%
Tampa	205,000	98.8	%	2.0	%	—		—		—		2.0	%
Raleigh	178,000	100.0	%	1.6	%	—		—		—		1.6	%
Charlotte	148,000	100.0	%	0.8	%	—		—		—		0.8	%
Other	110,000	100.0	%	0.5	%	—		—		—		0.5	%
Total 3/	7,325,000	93.0	%	91.4	%	4.3	%	1.0	%	3.3	%	100.0	%

1/ Annualized Cash Revenue is December, 2007 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 95.1%.

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

Highwoods Properties, Inc. 34 12/31/07

Joint Ventures Lease Expirations

December 31, 2007

Dollars in thousands

Year	Rentable Square Feet Expiring 1/	Percent of Rentable Square Feet 1/		Annualized Cash Revenue 2/		Average Rental Rate 2/		Percent of Annualized Cash Revenue 1/
Total
2008	1,120,687	16.3	%	$	20,094	$	17.93	15.3	%
2009	651,654	9.5	%		13,636		20.93	10.4	%
2010	832,008	12.2	%		15,566		18.71	11.9	%
2011	986,705	14.5	%		19,054		19.31	14.6	%
2012	571,951	8.4	%		12,198		21.33	9.3	%
2013	1,036,464	15.2	%		17,448		16.83	13.4	%
2014	468,728	6.9	%		10,536		22.48	8.1	%
2015	651,037	9.5	%		11,213		17.22	8.6	%
2016	101,873	1.5	%		1,121		11.00	0.9	%
2017	236,693	3.5	%		5,812		24.56	4.5	%
2018 and thereafter	169,150	2.5	%		3,877		22.92	3.0	%
	6,826,950	100.0	%	$	130,555	$	19.12	100.0	%

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

2/ Annualized Cash Revenue is December, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 35 12/31/07

Joint Venture Acquisition and Disposition Activity

Dollars in thousands

Acquisitions

Name	Market	Type 1/	Date Acquired	Square Footage	Total Cost 2/
First quarter 2007:
None
Second quarter 2007:
Eola Park Centre	Orlando	O	05/21/07	167,000	$	8,958
Second quarter totals				167,000	$	8,958
Third quarter 2007:
None
Fourth quarter 2007:
None
2007 totals				167,000	$	8,958

Dispositions

Name	Market	Type 1/	Date Sold	Square Footage	Occupancy		Gross Sales Price 2/
First quarter 2007:
Weston Lakeside 3/	Raleigh	M	02/22/07	322 Units	N/A		$	22,500
3404 North Duke Street 4/	Raleigh	O	03/12/07	67,000	100.0	%
4020 North Roxboro Road 4/	Raleigh	O	03/12/07	42,000	100.0	%
4101 North Roxboro Road 4/	Raleigh	O	03/12/07	56,000	100.0	%
Fairfield I 4/	Raleigh	O	03/12/07	51,000	100.0	%
Fairfield II 4/	Raleigh	O	03/12/07	60,000	96.9	%
				276,000	99.3	%	$	7,801
First quarter totals				276,000	99.3	%	$	30,301
Second quarter 2007:
None
Third quarter 2007:
None
Fourth quarter 2007:
None
2007 totals				276,000	99.3	%	$	30,301

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

2/ Reflects Highwoods pro-rata share only.

3/ The Weston Lakeside properties were owned by a 50% owned joint venture.

4/ These properties were 22.81% owned properties through the DLF 98/29 joint venture.

Highwoods Properties, Inc. 36 12/31/07

Joint Venture Development Activity

Dollars in thousands

Placed in Service
Property	% Ownership		Market	Rentable Square Feet	Anticipated Total Investment		Investment @ 12/31/07		Pre- Leasing		In-Service Date
Brickstone	50	%	Des Moines	31,000	$	5,149	$	4,691	64	%	12/01/07
Highwoods’ Share of the above					$	2,575	$	2,346

Highwoods Properties, Inc. 37 12/31/07