Piedmont Realty Trust announced that it signed more than 475,000 sq ft of leases during the fourth quarter, including 275,000 sq ft from new tenants. The new leases bring the company’s year‑to‑date leasing volume to roughly 2.3 million sq ft, a level that supports its projected growth trajectory for 2026.
The record Q4 leasing activity is a direct result of Piedmont’s “Piedmont PLACE” strategy, which focuses on renovating Class A office assets into hospitality‑driven, tenant‑centric spaces. Management said the approach has resonated with a broad range of industries, driving demand in Sunbelt markets where the company’s portfolio is concentrated.
With 350,000 sq ft still in the late‑stage pipeline, the company expects a record leasing year and momentum heading into 2026. The leasing momentum comes amid a broader office‑market shift toward quality and hybrid‑work‑ready spaces, a trend that has helped Piedmont capture demand even as interest rates rise and some tenants reduce square‑footage commitments.
Brent Smith, Piedmont’s President and CEO, noted that “leasing momentum has continued at a record pace during the fourth quarter as our renovated buildings, combined with a customer‑centric, placemaking mindset, continue to resonate with prospective users.” He added that the new leases and pipeline should position the company for a record leasing year and provide momentum heading into 2026.
Analysts have acknowledged the leasing success but remain cautious, citing broader office‑market headwinds such as rising interest rates and the ongoing shift to hybrid work models. The company’s focus on quality and tenant experience, however, is seen as a key differentiator that could sustain leasing performance in the coming years.
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