Piedmont Realty Trust Reports Strong Q4 Leasing, Occupancy Gains

Company highlights improving office market fundamentals and record leasing activity in 2025

Published on Feb. 15, 2026

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Piedmont Realty Trust (NYSE:PDM) executives emphasized improving office-market fundamentals and a surge in leasing activity during the company's fourth-quarter 2025 earnings call, pointing to a large backlog of signed-but-uncommenced leases that management expects to drive stronger occupancy and earnings in 2026. The company reported record leasing volume of 2.5 million square feet in 2025, exceeding its original guidance, and ended the year with nearly 2 million square feet of leases representing $68 million of future annualized cash rents, with substantially all commencing by the end of 2026.

Why it matters

Piedmont's strong leasing performance and improving office market conditions signal a potential turnaround for the commercial real estate sector, which has faced headwinds from the pandemic and shifts in workplace trends. The company's ability to maintain occupancy and drive rent growth could serve as a model for other office REITs navigating the evolving office landscape.

The details

In the fourth quarter, Piedmont completed about 679,000 square feet of leasing, with roughly 70% tied to new tenants, ending the year at 89.6% leased—up 120 basis points over the course of 2025. The company reported continued rent growth on new leasing, with rental rates on leases executed in the quarter for space vacant less than a year rising about 12% on a cash basis and 21% on an accrual basis. Piedmont also highlighted leasing progress at key properties in Atlanta and Orlando, as well as advancements in its out-of-service redevelopment portfolio.

  • Piedmont reported record leasing volume of 2.5 million square feet in 2025.
  • Piedmont ended 2025 with nearly 2 million square feet of leases representing $68 million of future annualized cash rents, with substantially all commencing by the end of 2026.

The players

Piedmont Realty Trust

A real estate investment trust (REIT) headquartered in Atlanta, Georgia, that focuses on the ownership, acquisition and management of office properties.

Brent Smith

President and CEO of Piedmont Realty Trust.

George Wells

Chief Operating Officer of Piedmont Realty Trust.

Sherry Rexroad

Chief Financial Officer of Piedmont Realty Trust.

Alex Valente

Co-Chief Operating Officer of Piedmont Realty Trust.

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What they’re saying

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— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

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— Gordon Edgar, grocery employee (Instagram)

What’s next

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The takeaway

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