High Leasing ConcessionsLeasing concessions remain high; we estimate CUZ TI/LC & Free Rent represents 34.0% of rent, above the LTM sector average of 22.5%, causing net effective rents of $24.85 to decline -11.9% vs. 2Q23.
Stabilization DelaysNeuhoff estimated stabilization pushed out to 2Q26 from 4Q25 for Office and Retail component.
Vacancy ImpactDespite its known large vacate of Bank of America in Charlotte during mid-2025, over the intermediate term, the company is growing more confident in an improving leasing outlook and returning occupancy levels to historical levels.