Parkway Announces Leasing and Occupancy Update

JACKSON, Miss., Aug. 27 /PRNewswire-FirstCall/ -- Parkway Properties, Inc. (NYSE: PKY) announced today that it has signed approximately 84,000 square feet of new and expansion leases and approximately 87,000 square feet of renewal leases since the Company's second quarter earnings release.  This activity brings the Company's portfolio to 86.0% occupied and 87.2% leased as of today.  Major leases recently signed include:  

• United States Cellular Corporation ("US Cellular") exercised a right to expand by 20,000 square feet at Citicorp Plaza in Chicago, Illinois, which will increase the size of its lease to 232,000 square feet.  As previously announced, US Cellular recently renewed its lease through October 31, 2017.
• AOL Inc. signed a seven-year new lease for 19,000 square feet at 233 North Michigan in Chicago, Illinois, and the lease is scheduled to commence on November 20, 2010.
• Sagent Pharmaceuticals, Inc. renewed and expanded at Chatham Centre in Chicago, Illinois, increasing the size of its lease to 20,000 square feet.  The lease was extended by 53 months, or through December 31, 2016.
• Welbro Building Corporation renewed 21,000 square feet for six years at Maitland 200 in Orlando, Florida, extending its lease through November 30, 2016.
• Gryphon Technologies, LC signed a 65-month new lease for 10,000 square feet at Greenbrier Tower II in Chesapeake, Virginia, and the lease is scheduled to commence on November 1, 2010.

William R. Flatt, Chief Operating Officer at Parkway, stated, "I am pleased to see some new and expansion activity in our portfolio despite a tough leasing environment.  The average cost of this recent leasing activity was approximately $2.70 per square foot per year with an average term of 6.3 years.  These metrics are in line with our budget, and the Company is on track to meet its occupancy guidance range for the year."

Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 64 office properties located in 11 states with an aggregate of approximately 13.2 million square feet of leasable space as of August 27, 2010.  Included in the portfolio are 21 properties totaling 3.9 million square feet that are owned jointly with other investors, representing 29.3% of the portfolio.  Fee-based real estate services are offered through the Company's wholly-owned subsidiary, Parkway Realty Services, which also manages and/or leases approximately 2.8 million square feet for third-party owners at August 27, 2010.

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

Forward Looking Statement

Certain statements in this release that are not in the present or past tense or discuss the Company's expectations (including the use of the words anticipate, believe, forecast, intends or project) are forward-looking statements within the meaning of the federal securities laws and as such are based upon the Company's current belief as to the outcome and timing of future events. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the real estate industry and in performance of the financial markets; the demand for and market acceptance of the Company's properties for rental purposes; the amount and growth of the Company's expenses; tenant financial difficulties and general economic conditions, including interest rates, as well as economic conditions in those areas where the Company owns properties; risks associated with joint venture partners; the risks associated with the ownership and development of real property; the failure to acquire or sell properties as and when anticipated; the outcome of claims and litigation involving or affecting the Company; and other risks and uncertainties detailed from time to time on the Company's SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company's results could differ materially from those expressed in the forward-looking statements. The Company does not undertake to update forward-looking statements.

SOURCE Parkway Properties, Inc.