Filed Pursuant to Rule 424(b)(3)
                                                      Registration No. 333-92957



                            PARKWAY PROPERTIES, INC.
                  DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN

         This prospectus supplement (the "Supplement") is part of, and should be
read in conjunction with, the prospectus dated February 1, 2000 (the
"Prospectus") relating to the Parkway Properties, Inc. Dividend Reinvestment and
Stock Purchase Plan.

         The changes described in this Supplement will become effective on
January 1, 2003 for the January 31, 2003 investment date.

- - The discount applicable to common shares purchased using reinvested dividends
  or optional cash investments has been reduced from 3% to 1%. The purchase
  price for shares of common stock under the plan will depend on how you
  purchase the shares and on whether we issue new shares to you or the plan
  obtains your shares by purchasing them in the open market as follows:

  - The purchase price for shares that the plan administrator purchases directly
    from us with reinvested dividends or optional cash investments within the
    plan limits will be 99% of the average daily high and low sales price for a
    share of our common stock reported by the New York Stock Exchange for the
    five days, on which trades of our stock occur, immediately prior to the
    applicable investment date. In no event, however, will the purchase price be
    less than 95% of the average of the high and low sales price for our common
    stock on the applicable investment date.

  - The purchase price for shares purchased directly from us with optional cash
    investments made with requests for waiver will be 99% of the average of the
    daily high and low sales price of our stock on the New York Stock Exchange
    for the ten trading days, on which our stock trades, immediately prior to
    the applicable investment date.

  - The purchase price for any shares you purchase through the plan that the
    plan administrator purchases from parties other than Parkway, either on the
    open market or in privately negotiated transactions, rather than directly
    from us, will be 99% of the weighted average price per share actually paid
    by the plan administrator, including any brokerage commissions.

- - The current administrator of the plan is Computershare Trust Company, Inc.,
  successor to Harris Trust and Savings Bank. You may contact the plan
  administrator at:

                        Computershare Trust Company, Inc.
                        Dividend Reinvestment Services
                        P.O. Box A3309
                        Chicago, Illinois 60690-3309
                        (877) 588-4124
                        web.queries@computershare.com

         Information on the cover page of the Prospectus and in the Prospectus
under the captions "Summary of the Plan -- Purchase Price" and "Summary of the
Plan -- Administration" and the responses to Questions 2, 6, 11, 22, 27, 35 and
37 under the heading "Terms and Conditions of the Dividend Reinvestment and
Stock Purchase Plan" should be read in light of the information contained in
this Supplement.


September 13, 2002                             Prospectus Dated February 1, 2000