Market Overview

Parkway Announces New Chairman and Chief Investment Officer

Parkway Properties, Inc. (NYSE: PKY) announced today that Charles T. Cannada has been appointed Chairman of Parkway's Board of Directors effective January 1, 2012. Mr. Cannada will replace Parkway's current Executive Chairman, James R. Heistand, who will become Parkway's permanent President and Chief Executive Officer on the same date. As previously announced, Steven G. Rogers will be stepping down as the Company's current President and Chief Executive Officer on December 31, 2011. Additionally, Parkway's Board of Directors has appointed David R. O'Reilly as Executive Vice President and Chief Investment Officer, effective October 31, 2011. James M. Ingram, who has served as Executive Vice President and Chief Investment Officer since 2003, will continue to serve as Executive Vice President and Chief of Sales and Business Development.

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