Shashank Saravanan

Shashank Saravanan asked for more color on bigger requirements in the Austin market, noting its positive inflection. He also inquired about how Cousins Properties anticipates tenant improvement (TI) spend will trend in 2026 and into 2027.

Answer

Richard Hickson, Executive Vice President of Operations, confirmed positive activity in Austin, particularly in the tech sector, which is starting to percolate in the company's pipeline and specific leasing efforts. Regarding TI spend, Richard Hickson acknowledged that TIs contributed to elevated concessions in the past quarter, driven by a prioritization of occupancy. He stressed that while this dynamic might continue in the near term, with tightening market conditions ahead, Cousins Properties expects to be able to reduce concessions over time as the market becomes more constructive for landlords.

Shashank Saravanan asked for more color on the positive inflection observed in the Austin market, specifically regarding larger tenant requirements. He also inquired about Cousins Properties' expectations for tenant improvement (TI) spend in 2026 and looking ahead into 2027.

Answer

Richard Hickson, EVP of Operations, confirmed positive activity in Austin, particularly in the tech sector, which historically drives the market, and noted this trend percolating in their pipeline. Regarding TI spend, Richard Hickson acknowledged elevated concessions in the past quarter due to prioritizing occupancy. He stressed that while TIs might continue to be elevated in the near term, Cousins Properties has successfully maintained net effective rents, and he expects concessions to decrease in the medium term as market conditions tighten.