Is HIW a Buy? What to Consider in 2026
Last updated July 2026
Short answer
The bull case for Highwoods Properties (HIW) rests on Sun Belt flight-to-quality: HIW concentrates in high-growth Southern BBDs where population and job migration support office demand better than gateway coastal markets. Revenue (TTM) is ~$840M. If you believe that thesis holds, the real questions become position sizing and overlap, not timing. The main risk to that view: Office remains the most challenged commercial real estate sector, with hybrid work and corporate downsizing pressuring long-term demand and occupancy. Whether HIW is a buy comes down to whether you believe the thesis. This is informational, not a recommendation, and Walnut is not an investment adviser.
Highwoods Properties (NYSE: HIW) is a fully integrated office REIT headquartered in Raleigh that owns, develops, leases and manages office properties concentrated in the best business districts (BBDs) of fast-growing Sun Belt markets including Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. The company focuses on newer, amenity-rich buildings meant to win the flight-to-quality trend as tenants consolidate into better space, and it recycles capital by selling older assets and funding development in supply-constrained submarkets. It also runs a modest development pipeline, recently placing over $200 million of projects into service and investing in properties in Dallas and Raleigh. The investment picture is a value-and-income one rather than a growth one. HIW trades at a discount typical of office REITs since the shift to hybrid work, and much of the return case rests on a large dividend plus a potential re-rating if occupancy and funds from operations (FFO) recover. Recent results show pricing power (double-digit GAAP rent growth on renewals) and guidance for rising occupancy, but the stock remains sensitive to interest rates, office demand, and the pace at which the Sun Belt absorbs space. It suits investors comfortable with office-sector risk in exchange for above-market yield.
What's the case for buying HIW?
1. Sun Belt flight-to-quality
HIW concentrates in high-growth Southern BBDs where population and job migration support office demand better than gateway coastal markets. Its newer, amenitized buildings are positioned to capture tenants trading up from older stock. Management guides for roughly 200 basis points of occupancy gains from end-2025 into 2026.
2. Rent growth and leasing momentum
The company signed 958,000 square feet of second-generation leases in Q1 2026 at GAAP rent growth near 19% on those deals, and average in-place cash rents rose about 2.2% year over year. This pricing power helps offset elevated concessions and re-leasing costs common across the office sector.
3. Development and capital recycling
HIW places well-leased development into service (recent projects delivered around 87% leased) while selling non-core, older assets to fund higher-quality investments in Dallas and Raleigh. Executed carefully, this upgrades portfolio quality and can lift long-run FFO per share.
4. High, covered dividend
The roughly $2.00 annualized dividend yields well above the broad market and is supported by FFO, giving investors income while the leasing recovery plays out. A stable payout underpins the total-return case even if price appreciation is slow.
What are the risks to HIW?
Office remains the most challenged commercial real estate sector, with hybrid work and corporate downsizing pressuring long-term demand and occupancy. HIW carries meaningful leverage (long-term debt in the billions, debt-to-EBITDA in the low-to-mid 6s), so higher-for-longer interest rates raise refinancing costs and weigh on the stock. Occupancy sits in the upper-80s rather than the mid-90s, leaving vacancy risk, and elevated tenant improvement and leasing-commission costs can pressure free cash flow. A weaker economy or a Sun Belt supply glut could stall the recovery, and any dividend concern would hit the shares hard.
How is HIW valued? (as of July 2026)
Snapshot for HIW as of July 2026, sourced from Yahoo Finance and may be delayed. Valuation figures move with price and earnings; verify the current numbers with your broker before deciding.
- Revenue (TTM): ~$840M
- Q1 2026 rental revenue: ~$214M (+6.8% YoY)
- Q1 2026 FFO / share: ~$0.84
- Market cap: ~$3B
- Dividend (annual) / yield: ~$2.00 / ~7%
- FY26 occupancy target: ~86.5% to 88.5%
HIW trades at a low multiple of FFO, reflecting the market's caution on office REITs, and its appeal is largely the high, FFO-covered dividend. Q1 2026 FFO of about $0.84 was roughly flat to slightly up year over year while revenue beat on rent growth. Net assets are reported near $2.4 billion, so the shares carry the leverage typical of the sector.
How do you decide if HIW is a buy?
Rather than asking whether HIW is a buy in the abstract, it tends to help to answer four questions:
- Thesis: do you believe the case above, and is it still true today?
- Time horizon: a single stock can be volatile, so a longer horizon absorbs more of the swings.
- Position sizing: a thesis can be right and the sizing still wrong; decide how much of your portfolio one name should be.
- Overlap: check whether you already hold HIW indirectly through an index or sector ETF before adding more.
For the full picture, see the HIW stock guide (what the company does, the ETFs that hold it, similar stocks, and the themes it fits). In Walnut you can ask its AI about HIW against your real portfolio and see your actual exposure before deciding.
The bottom line on HIW
The bottom line: Highwoods Properties's story right now is Sun Belt flight-to-quality, with revenue (ttm) at ~$840M. If you believe that narrative continues, the call is about sizing HIW sensibly and checking overlap with what you own; if you doubt it (the risk: office remains the most challenged commercial real estate sector, with hybrid work and corporate downsizing pressuring long-term demand and occupancy.), it is not for you. Decide from the thesis, not the ticker. Walnut is not an investment adviser.
Build a basket around HIW with Walnut
Use Highwoods Properties as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
Is HIW a good stock to buy right now?
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The case for Highwoods Properties right now is Sun Belt flight-to-quality, with revenue (ttm) at ~$840M. If you believe that thesis holds, HIW is a way to own it and the real questions are sizing and overlap, not timing; the main risk to that view is office remains the most challenged commercial real estate sector, with hybrid work and corporate downsizing pressuring long-term demand and occupancy. So it comes down to whether you believe the thesis. Walnut is not an investment adviser and this is not a recommendation.
What does Highwoods Properties do?
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Highwoods Properties (NYSE: HIW) is a fully integrated office REIT headquartered in Raleigh that owns, develops, leases and manages office properties concentrated in the best busin
What are the main risks of HIW?
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Office remains the most challenged commercial real estate sector, with hybrid work and corporate downsizing pressuring long-term demand and occupancy. HIW carries meaningful leverage (long-term debt in the billions, debt-to-EBITDA in the low-to-mid 6s), so higher-for-longer interest rates raise refinancing costs and weigh on the stock. Occupancy sits in the upper-80s rather than the mid-90s, leaving vacancy risk, and elevated tenant improvement and leasing-commission costs can pressure free cash flow. A weaker economy or a Sun Belt supply glut could stall the recovery, and any dividend concern would hit the shares hard.
What does Highwoods Properties do?
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It is an office REIT that owns, develops, leases and manages office buildings concentrated in the best business districts of Sun Belt cities such as Raleigh, Charlotte, Nashville, Atlanta, Dallas, Orlando, Richmond and Tampa.
Is HIW a REIT, and what does that mean for taxes?
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Yes, HIW is a real estate investment trust, so it distributes most of its taxable income as dividends. Those dividends are often taxed as ordinary income, and holding shares in a tax-advantaged account can be more efficient for some investors.
What is HIW's dividend yield?
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Highwoods pays roughly $2.00 per share annually, which recently worked out to a yield in the high-single digits (around 6% to 8% depending on the share price). The payout has generally been covered by funds from operations.
Why is HIW's yield so high?
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Office REITs trade at depressed valuations because hybrid work and softer office demand raised sector risk. A lower share price mechanically lifts the yield, so a high yield reflects both real income and the market's caution about office real estate.
Walnut is informational and is not an investment adviser. This page is educational and not a recommendation to buy or sell HIW; figures are approximate and dated, and your own situation, time horizon, and risk tolerance should drive any decision. Verify current data before investing.