City Office REIT, Inc. (NYSE: CIO) (“City Office” or the “Company”) announced today that it has completed a ten-year lease renewal at its 163,336 square foot Lake Vista property in Dallas, Texas.
The tenant occupies 100% of the Lake Vista property and its lease was extended by ten years and three months to April 30, 2032. The starting triple net rental rate on February 1, 2022 will be $17.50 per square foot (the “Renewal Rate”) with $0.50 per square foot annual increases thereafter. The Renewal Rate represents a 6.1% increase over the current triple net rental rate. As part of the lease renewal, the Company granted the tenant an option to purchase the property, which may be exercised at any time prior to July 31, 2022. The costs of the transaction include three months of rent abatement at the beginning of the extension term and approximately $5.5 million in leasing commissions and tenant improvement allowance.
About City Office REIT, Inc.
City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating high-quality office properties located in leading 18-hour cities in the Southern and Western United States. City Office currently owns or has a controlling interest in 5.8 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.
This press release contains "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 "anticipate", "expect," "intend," "may" 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, including with respect to future leasing or renewal activity, tenant occupancy levels, potential lease terminations, whether the Company may realize the benefits, if any, of our contractual relationships with tenants or third parties, the terms on which we may acquire or dispose of property in the future, if at all, and future cap rates. Factors that could cause actual results to differ materially include, among other things, the timing and amount of repurchases of CIO's common stock, if any, changes to CIO's expected liquidity position, the possibility that the repurchase program may be suspended or discontinued at any time and the risk factors set forth in CIO's Annual Report on Form 10-K for the year ended December 31, 2019 and subsequent filings with the United States 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.
Anthony Maretic, CFO