Cousins Properties Delivers Strong Q2 Results: FFO Growth and Robust Leasing Volumes

Cousins Properties, a leading real estate investment trust (REIT), reported an exceptional second quarter in 2026. The company's earnings per share for the period were $0.75, driven by strong funds from operations (FFO) growth.

According to Colin Connolly, President and Chief Executive Officer of Cousins Properties, the team delivered one of their highest leasing volumes in history, with 924,000 square feet of leases completed during the quarter. This resulted in occupancy levels reaching 98.8%, the highest level since the first quarter of 2020.

The company's cash rent roll-up on second-generation leasing was a notable 9.2%, marking 49 consecutive quarters of positive rent roll-ups. These results underscore the strength of Cousins Properties' portfolio and the depth of customer demand for high-quality lifestyle office space.

In his presentation, Connolly highlighted several key trends shaping the office landscape. Demand is improving, with leasing activity hitting a post-pandemic high during the second quarter, according to JLL. Net absorption has been positive for four straight quarters, leading to a decline in available space at one of the fastest paces in office market history.

Contrary to concerns that AI would negatively impact the office sector, employment data has shown no material negative trends. Instead, AI-related office demand is broadening across the country into all of Cousins Properties' markets, with approximately 1.2 million square feet of AI office demand in Austin, according to BTS.

The flight to quality remains unrelenting, with customers prioritizing high-quality and well-located buildings to promote engagement and collaboration. Nearly all positive net absorption since the onset of COVID has occurred in buildings delivered from 2010 onwards, according to JLL.

Finally, the Sun Belt migration continues to re-accelerate, with companies from high-cost, less business-friendly cities in the Northeast and West Coast opening new corporate hubs in the region. New construction starts are at historic lows, which means supply is unlikely to grow until 2030 at the earliest.