Parkway Buys Phoenix Tower, Tower Place, 525 North Tryon; to Offer 13.5M Shares

Parkway Properties, Inc.

announced today that it has entered into a purchase and sale agreement to acquire Phoenix Tower, a 626,000 square foot office tower located in the Greenway Plaza submarket of Houston, Texas; Tower Place 200, a 260,000 square foot office tower located in the Buckhead submarket of Atlanta, Georgia; and 525 North Tryon, a 406,000 square foot office tower located in the central business district (CBD) of Charlotte, North Carolina.  All three acquisitions are subject to customary closing conditions and are expected to close by the end of the fourth quarter of 2012.  Company also announcing a 13.5 million share offering of common stock. Phoenix Tower Parkway is under contract to acquire Phoenix Tower for a purchase price of $124.5 million, or $199 per square foot.  Phoenix Tower was built in 1984 and fully renovated in 2011.  It is a LEED® Gold Certified, 26-story, Class A office tower that sits atop an eight-story parking garage.  The building is currently 84.5% leased with an average in place net rent per square foot of $14.03.  Phoenix Tower is expected to generate a 2013 estimated cash net operating income yield of approximately 6.0%.  Parkway will own 100% of the asset and intends to place a secured first mortgage on the property shortly after closing totaling approximately 65% of the purchase price.  Closing is expected to occur by the end of the fourth quarter 2012 and is subject to customary closing conditions.  Tower Place 200 Parkway is under contract to acquire Tower Place 200 for a purchase price of $56.0 million, or $216 per square foot.  Tower Place 200 was built in 1998 and is a 13-story, Class A office tower that shares a parking garage with Parkway's neighboring 3344 Peachtree asset.  The building is approximately 81.0% leased with an average in place gross rent per square foot of $26.37.  Tower Place 200 is expected to generate a 2013 estimated cash net operating income yield of approximately 5.9%.  Parkway will own 100% of the asset and does not plan to place secured financing on the property at this time.  Closing is expected to occur by the end of the fourth quarter 2012 and is subject to customary closing conditions. 525 North Tryon Parkway is under contract to acquire 525 North Tryon for a purchase price of $47.4 million, or $117 per square foot.  525 North Tryon was built in 1998 and is a 19-story, Class A office tower with an attached parking garage.  The building is currently 69.8% leased with an average in place gross rent per square foot of $19.61.  525 North Tryon is expected to generate a 2013 estimated cash net operating income yield of approximately 4.7%.  Parkway will own 100% of the asset and does not plan to place secured financing on the property at this time.  Closing is expected to occur by the end of the fourth quarter 2012 and is subject to customary closing conditions.