Highwoods Properties ( HIW - Free Report ) is well-poised to benefit from the growing demand for its premier office properties concentrated in high-growth Sun Belt markets, aggressive capital-recycling program and solid balance sheet position. However, intense competition from its peers and high interest rates are key concerns. The company has a well-diversified tenant base that includes several bellwethers. Further, HIW benefits from a significant portion of its portfolio being focused on high-growth Sun Belt markets. These markets exhibit promising long-term demographic trends and are anticipated to maintain above-average job growth, which is expected to contribute to the sustained growth of rental income over the long term. Highwoods is witnessing a recovery in demand for its high-quality, well-placed office properties as highlighted by a rebound in new leasing volume.