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Parkway Agrees To Purchase Eight Office Buildings in Prime Submarket of Jacksonville, Florida



   Parkway Agrees To Purchase Eight Office Buildings in Prime Submarket of
                            Jacksonville, Florida

- Secures 1.0 million square foot portfolio below estimated replacement cost
in Deerwood submarket for $130 million

- Completes previously announced purchase of Tower Place 200, a 260,000 square
foot office tower located in the Buckhead submarket of Atlanta

PR Newswire

ORLANDO, Fla., Jan. 22, 2013

ORLANDO, Fla., Jan. 22, 2013 /PRNewswire/ -- Parkway Properties, Inc. (NYSE:
PKY) announced today that it has entered into a purchase and sale agreement to
acquire a portfolio of eight office properties totaling 1.0 million square
feet located in the Deerwood submarket of Jacksonville, Florida (the "Deerwood
Portfolio") for a purchase price of $130 million.  The properties were
developed in phases from 1996 through 2005 and are currently a combined 93.7%
occupied with an average in place gross rent per square foot of $19.11. 

(Logo:  http://photos.prnewswire.com/prnh/20030513/PARKLOGO )

James R. Heistand, Parkway's President and Chief Executive Officer, stated,
"We believe the Deerwood portfolio offers a stable, core investment with
strong occupancy and a high-quality rent roll.  The Deerwood submarket has
been a targeted growth area for Parkway given its prime location and the many
amenities it offers, attracting a multitude of institutional and strong credit
tenants to the area.  Parkway will have a critical mass in this submarket,
owning approximately 29% of the total office inventory, which should provide
us with operational efficiencies and leasing advantages.  In addition, our
attractive cost basis of $128 per square foot represents a significant
discount to estimated replacement cost."

The Deerwood Portfolio is expected to generate an initial full-year cash net
operating income yield of approximately 9%.  Parkway will own 100% of the
portfolio and plans to place secured financing on the properties simultaneous
with closing totaling up to 65% of the purchase price.  Parkway intends to
fund the remaining equity using borrowings from its revolving credit
facility.  Closing is expected to occur by the end of the first quarter 2013
and is subject to customary closing conditions, including completion of
satisfactory due diligence. 

The Deerwood submarket is comprised of approximately 3.5 million square feet
and has a direct vacancy rate of 9.7% as of December 31, 2012, according to
CBRE. 

Other Investment Activity

On January 17, 2013, Parkway completed the previously announced purchase of
Tower Place 200, a 260,000 square foot office tower located in the Buckhead
submarket of Atlanta, Georgia, for a purchase price of $56.0 million.  Tower
Place 200 was built in 1998 and is a 13-story, Class A office tower that
shares a parking garage with Parkway's neighboring 3344 Peachtree asset.  The
building is approximately 82.9% occupied with an average in place gross rent
per square foot of $26.37.  Parkway owns 100% of the asset and does not plan
to place secured financing on the property at this time.

About Parkway Properties

Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a
self-administered real estate investment trust specializing in the ownership
of quality office properties in higher-growth submarkets in the Sunbelt region
of the United States.  Parkway owns or has an interest in 43 office properties
located in nine states with an aggregate of approximately 11.9 million square
feet of leasable space at January 1, 2013.  Fee-based real estate services are
offered through wholly owned subsidiaries of the Company, which in total
manage and/or lease approximately 10.8 million square feet for third-party
owners at January 1, 2013.

Parkway Properties, Inc.'s press releases and additional information about the
Company are available on the Company's website at www.pky.com.

Forward Looking Statement

Certain statements in this press release that are not in the present or past
tense or that discuss the Company's expectations (including any use of the
words "anticipate," "assume," "believe," "estimate," "expect," "forecast,"
"guidance," "intend," "may," "might," "project", "should" or similar
expressions) are forward-looking statements within the meaning of the federal
securities laws and as such are based upon the Company's current beliefs as to
the outcome and timing of future events. There can be no assurance that actual
future developments affecting the Company will be those anticipated by the
Company.  Examples of forward-looking statements include projected net
operating income, cap rates, internal rates of return, future dividend payment
rates, forecasts of FFO accretion, projected capital improvements, expected
sources of financing, expectations as to the timing of closing of
acquisitions, dispositions and other potential transactions and descriptions
relating to these expectations.  These forward-looking statements involve
risks and uncertainties (some of which are beyond the control of the Company)
and are subject to change based upon various factors, including but not
limited to the following risks and uncertainties: changes in the real estate
industry and in performance of the financial markets; the demand for and
market acceptance of the Company's properties for rental purposes; the ability
of the Company to enter into new leases or renew leases on favorable terms;
the amount and growth of the Company's expenses; tenant financial difficulties
and general economic conditions, including interest rates, as well as economic
conditions in those areas where the Company owns properties; risks associated
with joint venture partners; risks associated with the ownership and
development of real property; termination of property management contracts;
the bankruptcy or insolvency of companies for which Parkway provides property
management services or the sale of these properties; the outcome of claims and
litigation involving or affecting the Company; the ability to satisfy
conditions necessary to close pending transactions and the ability to
successfully integrate pending transactions; applicable regulatory changes;
and other risks and uncertainties detailed from time to time in the Company's
SEC filings. Should one or more of these risks or uncertainties occur, or
should underlying assumptions prove incorrect, the Company's business,
financial condition, liquidity, cash flows and financial results could differ
materially from those expressed in the Company's forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made. 
New risks and uncertainties arise over time, and it is not possible for us to
predict the occurrence of those matters or the manner in which they may affect
us.  The Company does not undertake to update forward-looking statements
except as may be required by law.

Contact:
Thomas E. Blalock
Vice President of Investor Relations
(407) 650-0593

SOURCE Parkway Properties, Inc.

Website: http://www.pky.com
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