Item 2. Properties
Item 2. Properties.
The Company leases its corporate office space, including its corporate headquarters, which is located in Phoenix, Arizona. As of December 31, 2023, the Company owned 75 office properties with an aggregate of 8.7 million square feet located in 29 states, with an occupancy rate of 80.0% and a weighted-average remaining lease term of 3.9 years as of December 31, 2023. Including the Company’s pro rata share of square feet and annualized base rent from the Arch Street Joint Venture, it owned an aggregate of 8.9 million square feet, with an occupancy rate of 80.4%, or 87.2% adjusted for properties that are currently under agreement to be sold, and a weighted-average remaining lease term of 4.0 years as of December 31, 2023. See Schedule III – Real Estate and Accumulated Depreciation for more information about the Company’s properties and see Note 6 – Debt, Net for more information about mortgages and other indebtedness related to the Company’s properties.
Tenant Industry Diversification
The following table sets forth certain information regarding the tenant industry concentrations in our property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2023 (dollars and square feet in thousands):
Industry Number of Leases (1)
Leased Square Feet Leased Square Feet as a % of Total Portfolio Annualized Base Rent Annualized Base Rent as a % of Total Portfolio
Health Care Equipment & Services 12 1,109 12.5 % $ 21,601 15.3 %
Government & Public Services 17 769 8.7 % 19,657 13.9 %
Financial Institutions 3 616 6.9 % 15,720 11.1 %
Insurance 3 600 6.7 % 13,292 9.4 %
Capital Goods 10 846 9.5 % 12,656 9.0 %
Software & Services 6 609 6.9 % 12,390 8.8 %
Consumer Durables & Apparel 3 375 4.2 % 8,632 6.1 %
Telecommunication Services 5 419 4.7 % 6,892 4.9 %
Materials 4 366 4.1 % 5,852 4.1 %
Energy 1 309 3.5 % 5,762 4.1 %
Top Ten Tenant Industries 64 6,018 67.7 % 122,454 86.7 %
Remaining Tenant Industries:
Commercial & Professional Services 10 293 3.3 % 4,746 3.4 %
Transportation 4 279 3.1 % 4,496 3.2 %
Media & Entertainment 2 264 3.0 % 3,745 2.6 %
Retailing 3 157 1.8 % 3,247 2.3 %
Food, Beverage & Tobacco 1 96 1.1 % 2,022 1.4 %
Utilities 1 26 0.3 % 394 0.3 %
Real Estate 1 4 — % 86 0.1 %
Consumer Services 2 5 0.1 % 54 — %
Retail/Restaurant 1 2 — % 49 — %
Total 89 7,144 80.4 % $ 141,293 100.0 %
____________________________________
(1) The Company has certain properties that are subject to multiple leases.
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Geographic Diversification
The following table sets forth certain information regarding the geographic concentrations (by state) in our property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2023 (dollars and square feet in thousands):
Location Number of Properties Rentable Square Feet Square Feet as a % of Total Portfolio Annualized Base Rent Annualized Base Rent as a % of Total Portfolio
Texas 15 1,353 15.2 % $ 24,313 17.2 %
New Jersey 3 724 8.2 % 14,445 10.2 %
New York 5 781 8.8 % 14,407 10.2 %
Kentucky 2 458 5.2 % 10,354 7.3 %
Colorado 4 571 6.4 % 8,103 5.7 %
Massachusetts 2 378 4.3 % 7,947 5.6 %
Oklahoma 3 585 6.6 % 6,811 4.8 %
California 3 244 2.8 % 5,532 3.9 %
Missouri 3 303 3.4 % 4,917 3.5 %
Maryland 2 236 2.7 % 4,646 3.3 %
Top Ten States 42 5,633 63.6 % 101,475 71.7 %
Remaining States:
Tennessee 4 240 2.7 % 4,641 3.3 %
Georgia 3 284 3.2 % 4,635 3.3 %
Virginia 2 240 2.7 % 4,523 3.2 %
Ohio 3 237 2.7 % 3,545 2.5 %
Rhode Island 2 206 2.3 % 3,040 2.2 %
South Carolina 1 64 0.7 % 2,459 1.8 %
Wisconsin 1 155 1.7 % 2,299 1.6 %
Arizona 1 91 1.0 % 2,282 1.6 %
Illinois 8 738 8.3 % 2,191 1.6 %
Iowa 2 92 1.0 % 1,955 1.4 %
Nebraska 2 180 2.0 % 1,584 1.1 %
Pennsylvania 2 233 2.6 % 1,316 0.9 %
Oregon 1 69 0.8 % 1,142 0.8 %
West Virginia 1 63 0.7 % 1,130 0.8 %
Kansas 2 196 2.2 % 1,044 0.7 %
Idaho 1 35 0.4 % 741 0.5 %
Indiana 1 83 0.9 % 570 0.4 %
Minnesota 1 39 0.4 % 493 0.4 %
Florida 1 6 0.1 % 228 0.2 %
Total 81 8,884 100.0 % $ 141,293 100.0 %
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Tenant Diversification
The following table sets forth certain information regarding tenants comprising over one percent of annualized base rent in our property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2023 (dollars and square feet in thousands):
Tenant Number of Leases Leased Square Feet Square Feet as a % of Total Portfolio Annualized Base Rent Annualized Base Rent as a % of Total Portfolio
General Services Administration 15 725 8.2 % $ 19,109 13.5 %
Merrill Lynch 1 482 5.4 % 12,465 8.8 %
Highmark Western & Northeastern NY 1 430 4.8 % 8,450 6.0 %
RSA Security 2 328 3.7 % 7,221 5.1 %
Cigna/Express Scripts 3 365 4.1 % 6,922 4.9 %
Coterra Energy 1 309 3.5 % 5,762 4.1 %
MDC Holdings Inc. 1 144 1.6 % 4,385 3.1 %
T-Mobile 3 217 2.4 % 3,971 2.8 %
Charter Communications 2 264 3.0 % 3,745 2.7 %
Banner Life Insurance 1 116 1.4 % 3,581 2.5 %
Top Ten Tenants 30 3,380 38.1 % 75,611 53.5 %
Remaining Tenants:
Inform Diagnostics 1 172 1.9 % 3,551 2.5 %
Encompass Health 1 65 0.7 % 3,505 2.5 %
Collins Aerospace 1 207 2.3 % 3,369 2.4 %
Home Depot/HD Supply 2 153 1.8 % 3,173 2.2 %
AT&T 1 203 2.3 % 2,921 2.1 %
Ingram Micro 1 170 1.9 % 2,898 2.1 %
Linde 1 175 2.0 % 2,714 1.9 %
Maximus 2 168 1.9 % 2,549 1.8 %
Citigroup 1 64 0.7 % 2,459 1.7 %
CVS/Aetna 1 127 1.4 % 2,328 1.7 %
Hasbro 1 136 1.5 % 2,243 1.6 %
Novus International 1 96 1.1 % 2,022 1.4 %
Pulte Mortgage 1 95 1.1 % 2,005 1.4 %
NetJets 1 140 1.6 % 1,990 1.4 %
Elementis 1 66 0.7 % 1,980 1.4 %
FedEx 1 90 1.0 % 1,744 1.2 %
General Electric 1 152 1.7 % 1,713 1.2 %
AGCO 1 126 1.4 % 1,607 1.1 %
Intermec 1 81 0.9 % 1,459 1.0 %
Abbott Laboratories 1 131 1.5 % 1,379 1.0 %
Becton Dickinson 1 72 0.8 % 1,370 1.0 %
Total 53 6,069 68.3 % $ 124,590 88.1 %
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Lease Expirations
The following table sets forth certain information regarding scheduled lease expirations in our property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2023 (dollars and square feet in thousands):
Year of Expiration Number of Leases
Expiring (1)
Leased
Square Feet Leased Square Feet as a % of Total Portfolio Annualized Base Rent Annualized Base Rent as a % of Total Portfolio
2024 15 1,907 21.5 % $ 39,432 27.9 %
2025 12 919 10.3 % 16,858 11.9 %
2026 15 801 9.0 % 18,834 13.3 %
2027 14 1,004 11.3 % 16,621 11.8 %
2028 11 594 6.7 % 10,981 7.8 %
2029 4 396 4.5 % 5,966 4.2 %
2030 3 138 1.6 % 5,153 3.7 %
2031 1 11 0.1 % 429 0.3 %
2032 3 300 3.4 % 3,808 2.7 %
2033 3 358 4.0 % 6,187 4.4 %
Thereafter 8 716 8.0 % 17,024 12.0 %
Total 89 7,144 80.4 % $ 141,293 100.0 %
____________________________________
(1) The Company has certain properties that are subject to multiple leases.
Item 3. Legal Proceedings.
As of December 31, 2023, we are not a party to, and none of our properties are subject to, any material pending legal proceedings.
Item 4. Mine Safety Disclosures.
Not applicable.
PART II