City Office REIT Provides Update on Impactful Leasing

Rhea-AI Summary

City Office REIT (NYSE: CIO) has announced significant leasing achievements at two key properties. At the Terraces property in Dallas, an existing tenant has signed a 60,000 square foot lease, extending their current 44,000 square foot space until 2036 and adding 16,000 square feet. This expansion, set to begin in early 2026, brings the property's occupancy to 95%. Additionally, at Bloc 83 in Raleigh, the commencement of a 29,000 square foot tenant lease has elevated the office component's occupancy to 98%.

Positive

• Terraces property lease extension secured until 2036, demonstrating long-term tenant commitment
• 16,000 square feet expansion with existing tenant
• Terraces property achieves 95% occupancy rate
• Bloc 83 office component reaches 98% occupancy

Negative

• None.

VANCOUVER, Dec. 18, 2024 /PRNewswire/ -- City Office REIT, Inc. (NYSE: CIO) ("City Office," "CIO" or the "Company") announced today that it has signed a 60,000 square foot lease with an existing tenant at its premier Terraces property located in Dallas, Texas. 

The lease extends the tenant's existing 44,000 square foot space until 2036 and expands the tenant's space by 16,000 square feet.  Including the expansion space, which is expected to commence in early 2026, the property is now 95% leased.  

In addition, with the recent commencement of a 29,000 square foot tenant at Bloc 83 in Raleigh, North Carolina, the office component of Bloc 83 has achieved a 98% occupancy.

James Farrar, the Company's Chief Executive Officer stated, "Leasing activity for premier properties and locations continues to strengthen across the country.  We are pleased with our success in driving value through impactful leasing transactions."

About City Office REIT, Inc.

City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating office properties located predominantly in Sun Belt markets. City Office currently owns or has a controlling interest in 5.6 million square feet of office properties. The Company has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.

Forward-looking Statements

This press release contains both historical and "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looking statements can often be identified by words such as "approximately," "anticipate," "assume," "believe," "budget," "contemplate," "continue," "could," "estimate," "expect," "future," "intend," "may," "outlook," "plan," "potential," "predict," "project," "seek," "should," "target," "will" and similar expressions, and variations or negatives of these words. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. Factors that could cause actual results to differ materially include, among other things, changes to CIO's expected liquidity position and the risk factors set forth in CIO's Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent filings with the Securities and Exchange Commission. The statements made herein speak only as of the date of this press release, and, except as required by law, CIO does not undertake any obligation to publicly update or revise any forward-looking statements.

Contact

City Office REIT, Inc.
Anthony Maretic, CFO
+1-604-806-3366
investorrelations@cityofficereit.com

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SOURCE City Office REIT, Inc.

FAQ

What is the new occupancy rate at City Office REIT's Terraces property in Dallas?

Following the recent lease expansion, the Terraces property in Dallas has achieved a 95% occupancy rate.

How large is the new lease expansion at CIO's Terraces property?

The lease includes a 16,000 square foot expansion, bringing the total leased space to 60,000 square feet.

What is the occupancy rate at CIO's Bloc 83 property in Raleigh?

The office component of Bloc 83 in Raleigh has achieved 98% occupancy following the commencement of a 29,000 square foot tenant lease.

How long is the new lease term for the expanded tenant at CIO's Terraces property?

The lease extends until 2036, securing long-term occupancy for the expanded 60,000 square foot space.