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, 2024, the Company owned 69 operating properties with an aggregate of 7.9 million leasable square feet located in 29 states, with an occupancy rate of 73.0% and a weighted-average remaining lease term of 5.2 years. Including the Company’s proportionate share of leasable square feet and annualized base rent from the Arch Street Joint Venture, it owned an aggregate of 8.1 million leasable square feet, with an occupancy rate of 73.7%, or 73.1% adjusted for two operating properties that are currently under agreements to be sold, and a weighted-average remaining lease term of 5.2 years as of December 31, 2024. 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.
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During the year ended December 31, 2024, we split the properties located in Amherst, New York and Denver, Colorado, each containing two buildings, into four separate properties for reporting purposes. Also during the year ended December 31, 2024, we commenced classifying certain of our properties which are being repositioned, redeveloped, developed or held for sale as non-operating properties rather than operating properties, resulting in seven properties being removed from the presentation of the Company’s portfolio of operating properties as of December 31, 2024.
Tenant Industry Diversification
The following table sets forth certain information regarding the tenant industry concentrations in our operating 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, 2024 (dollars and square feet in thousands):
Industry Number of Leases (1)
Occupied Square Feet % of Total Rentable Square Feet Annualized Base Rent % of Total Annualized Base Rent
Government & Public Services 17 769 9.5 % $ 20,179 16.8 %
Health Care Equipment & Services 10 846 10.4 % 16,158 13.4 %
Financial Institutions 2 546 6.7 % 13,772 11.4 %
Capital Goods 10 846 10.4 % 13,207 11.0 %
Consumer Durables & Apparel 3 375 4.6 % 8,971 7.5 %
Materials 5 462 5.7 % 8,378 7.0 %
Telecommunication Services 5 420 5.2 % 7,202 6.0 %
Energy 1 309 3.8 % 5,866 4.9 %
Commercial & Professional Services 10 281 3.5 % 5,516 4.6 %
Software & Services 3 263 3.3 % 5,056 4.2 %
Top Ten Tenant Industries 66 5,117 63.1 % 104,305 86.8 %
Remaining Tenant Industries:
Transportation 4 279 3.5 % 4,536 3.8 %
Media & Entertainment 2 264 3.3 % 3,803 3.2 %
Insurance 1 116 1.4 % 3,671 3.0 %
Retailing 3 157 1.9 % 3,368 2.8 %
Utilities 1 25 0.3 % 394 0.3 %
Restaurant 4 15 0.2 % 168 0.1 %
Real Estate 1 2 — % 48 — %
Total 82 5,975 73.7 % $ 120,293 100.0 %
____________________________________
(1) The Company has certain operating 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 operating 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, 2024 (dollars and square feet in thousands):
Location Number of Properties Rentable Square Feet % of Total Rentable Square Feet Annualized Base Rent % of Total Annualized Base Rent
Texas 15 1,352 16.7 % $ 19,910 16.5 %
New Jersey 3 714 8.8 % 15,023 12.5 %
Kentucky 2 458 5.6 % 10,470 8.7 %
Colorado 4 452 5.6 % 8,581 7.1 %
California 4 341 4.2 % 8,144 6.8 %
Oklahoma 3 585 7.2 % 7,017 5.8 %
New York 6 781 9.6 % 6,151 5.1 %
Maryland 2 236 2.9 % 4,756 4.0 %
Tennessee 4 240 3.0 % 4,708 3.9 %
Georgia 3 284 3.5 % 4,669 3.9 %
Top Ten States 46 5,443 67.1 % 89,429 74.3 %
Remaining States:
Virginia 2 240 3.0 % 4,623 3.8 %
Missouri 2 207 2.5 % 2,981 2.5 %
South Carolina 1 64 0.8 % 2,513 2.1 %
Ohio 2 169 2.1 % 2,463 2.0 %
Rhode Island 2 206 2.5 % 2,446 2.0 %
Wisconsin 1 155 1.9 % 2,357 2.0 %
Illinois 2 163 2.0 % 2,240 1.9 %
Iowa 2 92 1.1 % 2,001 1.7 %
West Virginia 1 63 0.8 % 1,457 1.2 %
Nebraska 2 180 2.2 % 1,411 1.2 %
Pennsylvania 2 233 2.9 % 1,345 1.1 %
Oregon 1 69 0.9 % 1,165 1.0 %
Kansas 2 196 2.4 % 1,075 0.9 %
Massachusetts 2 378 4.7 % 742 0.6 %
Idaho 1 35 0.4 % 741 0.6 %
Indiana 1 83 1.0 % 581 0.5 %
Minnesota 1 39 0.5 % 493 0.4 %
Florida 1 6 0.1 % 230 0.2 %
Arizona 1 91 1.1 % — — %
Total 75 8,112 100.0 % $ 120,293 100.0 %
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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 operating 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, 2024 (dollars and square feet in thousands):
Tenant Number of Leases Occupied Square Feet % of Total Rentable Square Feet Annualized Base Rent % of Total Annualized Base Rent
General Services Administration 15 725 8.9 % $ 19,631 16.3 %
Bank of America 1 482 5.9 % 11,260 9.4 %
Coterra Energy 1 309 3.8 % 5,866 4.9 %
Cigna/Express Scripts 2 274 3.4 % 4,770 4.0 %
MDC Holdings Inc. 1 144 1.8 % 4,473 3.7 %
T-Mobile 3 217 2.7 % 4,065 3.4 %
Charter Communications 2 264 3.3 % 3,803 3.2 %
Banner Life Insurance 1 116 1.4 % 3,670 3.1 %
Encompass Health 1 65 0.8 % 3,575 3.0 %
Collins Aerospace 1 207 2.6 % 3,440 2.9 %
Top Ten Tenants 28 2,803 34.6 % 64,553 53.9 %
Remaining Tenants:
Home Depot/HD Supply 2 153 1.9 % 3,292 2.7 %
AT&T 1 203 2.5 % 3,137 2.6 %
Ingram Micro 1 170 2.1 % 2,985 2.5 %
Linde 1 175 2.2 % 2,800 2.3 %
Maximus 2 168 2.1 % 2,610 2.2 %
Citigroup 1 64 0.8 % 2,513 2.1 %
Hasbro 1 136 1.7 % 2,446 2.0 %
Valent U.S.A. 1 97 1.2 % 2,417 2.0 %
CVS/Aetna 1 127 1.6 % 2,403 2.0 %
GE Vernova 1 152 1.9 % 2,055 1.7 %
Pulte Mortgage 1 95 1.2 % 2,053 1.7 %
NetJets 1 140 1.7 % 2,015 1.7 %
Elementis 1 66 0.8 % 1,980 1.6 %
Day Pitney 1 56 0.7 % 1,783 1.5 %
FedEx 1 90 1.1 % 1,744 1.4 %
AGCO 1 126 1.6 % 1,607 1.3 %
Intermec 1 81 1.0 % 1,503 1.2 %
Abbott Laboratories 1 131 1.6 % 1,412 1.2 %
Becton Dickinson 1 72 0.9 % 1,397 1.2 %
Ifm Efector 1 45 0.6 % 1,345 1.1 %
Peraton 1 33 0.4 % 1,184 1.0 %
Total 51 5,183 64.2 % $ 109,234 90.9 %
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Lease Expirations
The following table sets forth certain information regarding scheduled lease expirations in our operating 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, 2024 (dollars and square feet in thousands):
Year of Expiration Number of Leases
Expiring (1)
Occupied
Square Feet % of Total Rentable Square Feet Annualized Base Rent % of Total Annualized Base Rent
2025 9 859 10.6 % $ 16,200 13.5 %
2026 15 688 8.5 % 15,572 12.9 %
2027 13 973 12.0 % 16,524 13.7 %
2028 12 992 12.2 % 21,091 17.5 %
2029 5 398 4.9 % 6,174 5.1 %
2030 6 214 2.7 % 7,094 5.9 %
2031 1 11 0.1 % 431 0.4 %
2032 3 300 3.7 % 3,875 3.2 %
2033 3 358 4.4 % 6,364 5.3 %
2034 4 172 2.1 % 2,532 2.1 %
Thereafter 11 1,010 12.5 % 24,436 20.4 %
Total 82 5,975 73.7 % $ 120,293 100.0 %
____________________________________
(1) The Company has certain operating properties that are subject to multiple leases.
Operating Property Type
The following table sets forth certain information regarding property types in our operating 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, 2024 (dollars and square feet in thousands):
Property Type Number of Properties Rentable Square Feet % of Total Rentable Square Feet Annualized Base Rent % of Total Annualized Base Rent
Traditional Office 46 6,081 75.0 % 82,001 68.2 %
Governmental 16 789 9.7 % 20,269 16.8 %
Flex/Industrial 7 819 10.1 % 8,238 6.8 %
Flex/Laboratory and R&D 4 268 3.3 % 6,210 5.2 %
Medical Office 2 155 1.9 % 3,575 3.0 %
Total 75 8,112 100.0 % 120,293 100.0 %
Item 3. Legal Proceedings.
As of December 31, 2024, 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.
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PART II