How Does Cousins Properties Company Work?

Cousins Properties is deeply involved in the acquisition and development of Class A office properties. Their process involves rigorous underwriting to ensure long-term value creation and a focus on prime locations within the Sun Belt.

The company manages and leases its portfolio of office spaces, aiming to maintain high occupancy rates. As of December 31, 2024, Cousins owned 42 properties totaling 20.6 million square feet of office space, with its managed portfolio around 18.8 million square feet leased at approximately 90%.

Cousins Properties differentiates itself by offering high-quality, modern office spaces with extensive amenities. This strategy appeals to companies seeking superior work environments to attract and retain talent, aligning with the 'flight to quality' trend.

A significant portion of Cousins' portfolio consists of newer properties, with about a third being less than five years old or recently redeveloped. This focus on premium, modern assets in desirable locations supports higher rental rates and stable occupancy.

In Q4 2024, the company invested nearly $1 billion in trophy lifestyle office properties. Notable acquisitions included Vantage South End in Charlotte for $328.5 million and Sail Tower in Austin for approximately $521.8 million.

In July 2025, Cousins acquired The Link in Uptown Dallas for $218 million, a 292,000 square foot property that was 93.6% leased. These strategic moves were financed through senior note offerings and equity issuances, immediately boosting earnings.

Despite broader office market challenges, Cousins has maintained robust leasing activity. In Q2 2025, 334,000 square feet of office leases were executed, with 80% representing new or expansion leases, demonstrating strong tenant demand.

The company achieved a 10.9% increase in second-generation net rent per square foot on a cash basis in Q2 2025. Positive cash rent roll-ups have been consistent for 43 consecutive quarters as of Q4 2024.

Cousins Properties is a leading owner and operator of Class A office buildings, primarily located in high-growth Sun Belt markets. This strategic positioning allows the company to benefit from favorable demographic and economic trends, contributing to its strong market presence.

The company's portfolio consists of 100% Class A properties, with an average age of 2011. This focus on quality assets supports higher rental income, with asking rents 16% above pre-pandemic levels and 24% higher than the Class A average.

The broader office market faces challenges such as increased vacancy rates and slower rent growth compared to national averages. Additionally, rising interest expenses present a financial risk that the company must manage.

Future strategies include investing in lifestyle office assets and divesting non-core properties. The company anticipates its full-year 2025 FFO guidance to be between $2.79 and $2.85 per share, reflecting a 4.8% increase.