Highwoods Properties Inc (NYSE:HIW) Q2 2020 Earnings Conference Call - Final Transcript
Jul 29, 2020 • 11:00 am ET
we were expecting an uptick after the 4th of July, and really haven't seen that. So it has been fairly consistent starting, I'd say, maybe mid-May up till now. It may go up or down a little bit week-over-week, but generally most of our markets are in that 20% to 30% range from a building standpoint.
Brian, do you want to touch on the leasing?
Sure, Ted. Just following up on that, I think the occupancy and the leasing activity have sort of tracked each other a little bit. To Ted's point on the July 4 date, we did start to see more people coming back in the buildings. Previous quarter, no tours whatsoever, everything was virtual. We have absolutely seen people touring the buildings now, kicking the tires, the number of proposals are up, but it's slow, right? We're seeing the sublease market start to track similar to what you would expect at the beginning of a recession, generally larger users with the excess space that they may have taken previously to it. But we have gone ahead and projected most of the new spec leasing into 2021 that we had in the remainder of 2020. So, we feel pretty conservative in our thinking through year-end.
And then Dave, just to answer the parking question. So, I think we did a little bit better than what our internal forecast was in the second quarter on parking. But what we've seen thus far, I'd say, in the latter part of the second quarter and then thus far in July is maybe less of a ramp up than what we had projected when we updated guidance in April. So, our expectations are that, parking revenues are -- in the third and fourth quarter are likely to be roughly in line with the level that we experienced in the second quarter. And previously, I think, we thought there would be some ramp up in those parking revenues in the back half of the year.
Thank you. We have a question from Jamie Feldman with Bank of America. Please go ahead.
Thank you. There has been a lot of discussion around work from home in suburban satellite offices and are people going to prefer less urban centers, more center -- more settings, more urban or more suburban. As you think about your market footprint and the balance, what are the conversations like with tenants when they're even considering that? Or is there a views like there isn't really no advantage either way given the commute times are probably pretty equal and you're not really saving that much? I'm just curious what the discussion are like.
Yeah. Jamie, it's Ted. Let me start, maybe Brian will add onto it. Look, I think it's still pretty early in terms of these discussions. As you know, companies first and foremost, have been making sure their employees are safe and healthy as they plan for the return to the office. And as we've talked about, most of