AT&T will vacate 221,000 square feet of office space in a Highwoods Properties building in Atlanta early next year.
Raleigh-based Highwoods announced the move during its conference call with analysts this morning.
AT&T is consolidating its footprint into company-owned space.
Highwoods said AT&T is paying a $3.2 million termination fee on its lease at 2800 Century Center on I-85.
The REIT is also taking a $1.4 million write-off for the lease, meaning the impact on the company's funds from operations, a profitability measure for REITs, will be $1.8 million or $.024 cents a share.
"We're confident we will have success in leasing the building, and our team is already talking to a number of prospects," said Michael Harris, Highwoods chief operating officer.
Ed Fritsch, Highwoods CEO, also said on the conference call that the REIT is pursuing several development projects ranging in size from $13 million to $100 million.
$100 million also happens to be the projected price tag for Red Hat's proposed new headquarters in Wake County.