Highwoods Properties Inc. reported Friday that a major tenant in Tampa would immediately discontinue operations and vacate occupied space of 176,000 square feet in one of its buildings due to financial difficulties.

Highwoods, an office-focused Raleigh-based real estate investment trust, developed The Laser Spine Institute’s Tampa headquarters at 5332 Avion Park Drive, and Laser Spine occupied the entire building.

“This is obviously disappointing to us and others affected by this sudden closure,” said Highwoods CEO Ed Fritsch. “Looking forward, the building is well-located at Avion Park in the heart of Westshore next to Tampa International Airport.”

The REIT’s CEO remained optimistic that the building would lease up quickly given the building’s design, citing the following: Large footprint on each floor; high ceilings; floor-to-ceiling exterior glass; high visibility parapet signage; and above-market parking ratio.

Highwoods’ 3.6 million-square-foot Tampa portfolio was 95.3 percent occupied at the end of 2018.

Highwoods expects to write off accounts and notes receivable, as well as lease incentives and straight-line rents receivable with the building — accounting for $11.8 million at year-end 2018 and estimated at $12.2 million as of March 1, 2019.

It will also write-off deferred leasing costs associated with the building, aggregated at $11.6 million as of March 1.

Laser Spine operated a chain of surgery clinics in Tampa, St. Louis, Cincinnati and Scottsdale offered minimally invasive spinal procedures.

The surgery chain attempted to reduce costs over the past six months as it aimed at Chapter 11 bankruptcy proceedings, but was unable to generate interest from financing groups necessary to continue with debt reorganization.

An estimated 600 employees at the Tampa location will be let go.

The 8-K filing by Highwoods on Laser Spine’s closure can be found here.

Highwoods’ stock price fell 41 cents over the course of the day Monday, to $45.62 from $46.03.