New Office Customer to Occupy Three Full Floors
RALEIGH, N.C., Jan. 07, 2020 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (HIW) has signed a lease for three full floors, or 92,000 square feet, at 5332 Avion in Tampa with a new office customer for the Company. Fanatics Brands, the in-house apparel division for Fanatics, Inc., will occupy the space – one of more than a dozen office locations for Fanatics around the globe. 5332 Avion is a 176,000 square-foot, six-story building with structured parking in Tampa’s Westshore submarket, a best business district (BBD). The building, which was developed by Highwoods, was previously used by Laser Spine Institute for its company headquarters and an ambulatory surgery center.
Ted Klinck, President and CEO stated, “We’re thrilled Fanatics, the global leader in licensed sports merchandising, will be a new customer for Highwoods. Our Tampa team has done an excellent job marketing 5332 Avion and our progress to date validates our standard practice of designing properties to provide long-term, multi-customer office flexibility, including build-to-suits.”
“As Fanatics continues to innovate and grow the global licensed sports industry, we’re excited to move into our new, collaborative space in Tampa,” said Joe Bozich, President of Fanatics Brands. “This space will join many of our teams under one roof and allow us to better engage with our employees, foster creativity, and create an enhanced environment of teamwork.”
Highwoods stated that, because Fanatics has immediate access to its three floors to begin construction of tenant improvements, the Company is required to immediately commence recognition of GAAP net operating income and reflect Fanatics in occupancy as of year-end 2019, even though the lease is expected to have only minimal impact on same property cash net operating income in 2020.
As the global leader in licensed sports merchandise, Fanatics is changing the way fans purchase their favorite team apparel and jerseys through an innovative, tech-infused approach to making and selling fan gear in today's on-demand culture, including manufacturing and distributing all Nike NFL and MLB jerseys and fan apparel sold at retail beginning in 2020. Operating multi-channel commerce for the world's biggest sports brands, Fanatics offers the largest collection of timeless and timely merchandise whether shopping online, on your phone, in stores, in stadiums or on-site at the world's biggest sporting events.
As multi-channel company, Fanatics operates more than 300 online and offline stores, including the e-commerce business for all major professional sports leagues (NFL, MLB, NBA, NHL, NASCAR, MLS, PGA), major media brands (NBC Sports, CBS Sports, FOX Sports) and more than 200 collegiate and professional team properties, which include several of the biggest global soccer clubs (Manchester United, Chelsea, Manchester City). The company's in-venue and event retail portfolio includes the NBA and NHL flagship stores in New York City, Kentucky Derby, The Ryder Cup along with in-arena stores for dozens of NFL, NBA, MLB, NHL teams and numerous college teams.
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (HIW) real estate investment trust (“REIT”) and a member of the S&P MidCap 400 Index. Highwoods is a fully-integrated office REIT that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Greensboro, Memphis, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa. For more information about Highwoods, please visit our website at www.highwoods.com.
Certain matters discussed in this press release about Highwoods are forward-looking statements within the meaning of the federal securities laws. These statements are distinguished by use of the words ”will,” “expect,” “intend,” “plan,” “anticipate” and words of similar meaning. Although Highwoods believes 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 2018 Annual Report on Form 10-K and subsequent SEC reports.
Executive Vice President, Finance
Contact for Fanatics