City Office REIT, Inc. (CIO): Business Model Canvas [Dec-2025 Updated]

Honestly, looking at City Office REIT, Inc. (CIO)'s business model right now means analyzing a company in transition, defined by the pending acquisition from MCME Carell. Before that deal closes, this REIT is busy executing, shedding assets like the $\mathbf{\$296.0}$ million Phoenix portfolio while still signing $\mathbf{355,000}$ sq ft of new leases in Q2 2025 to maximize value from its $\mathbf{5.4}$ million square feet of office space. I've mapped out the nine essential blocks-from their high-growth market focus to the $\mathbf{\$42.3}$ million in quarterly rental revenue-so you see the precise operational blueprint they used to get to this exit point. Keep reading to see the exact structure that drove their final performance.

City Office REIT, Inc. (CIO) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships City Office REIT, Inc. (CIO) relies on to execute its strategy, especially as it transitions out of public life. These aren't just names on a contract; they represent significant financial commitments and strategic alignment.

The most defining partnership as of late 2025 is the definitive agreement to merge, which effectively ends the company's status as a publicly traded REIT.

• MCME Carell Holdings, LP as the definitive merger partner, acquiring all outstanding shares for $7.00 per share in cash.
• Property Markets Group (PMG) for the St. Petersburg redevelopment joint venture.
• Commercial lenders providing significant debt capital.
• Advisors and affiliated entities supporting corporate actions and operations.

The merger transaction, valued at approximately $1.1 billion (including debt assumption and preferred stock redemption), was unanimously approved by the Board of Directors and by stockholders on October 16, 2025. The closing was anticipated in the fourth quarter of 2025. The buyer, MCME Carell, is an affiliate of Elliott Investment Management L.P., which managed approximately $72.7 billion in assets as of December 31.

The joint venture with Property Markets Group (PMG) is a key strategic move for asset value creation in Florida. This partnership, formalized via a contribution agreement on April 14, 2025, targets the redevelopment of the City Center property in St. Petersburg.

Financing these operations relies heavily on capital markets. As of June 30, 2025, City Office REIT, Inc. had total principal outstanding debt of approximately $649.2 million. This debt structure shows a reliance on fixed-rate instruments, with approximately 81.9% being fixed rate or effectively fixed rate due to interest rate swaps. The weighted average interest rate on this debt was 5.2%, with a weighted average maturity of approximately 1.4 years.

For transactional and operational support, City Office REIT engages specific firms. Raymond James & Associates, Inc. served as an advisor for the definitive merger agreement. Operationally, the company leverages an externally managed structure, receiving advisory and property management services from City Office REIT Advisors LP, which is an affiliate of Shorenstein. Specific, quantifiable data for third-party brokerage commissions or maintenance vendor spend is not detailed in the latest public filings, so we focus on the known transaction advisors and the affiliated management structure.

• Raymond James & Associates, Inc. - Advisor for the $1.1 billion merger transaction.
• City Office REIT Advisors LP - Provides advisory and property management services.

Finance: draft 13-week cash view by Friday.

City Office REIT, Inc. (CIO) - Canvas Business Model: Key Activities

You're looking at the core operational drivers for City Office REIT, Inc. (CIO) as they navigate a major transition in late 2025. The key activities right now are heavily weighted toward corporate action, but the day-to-day property management still has to run like clockwork. Honestly, it's a balancing act between closing a deal and keeping the lights on for existing tenants.

Executing the definitive merger agreement and required asset sales

The most significant activity is the execution of the transaction that will take City Office REIT private. You saw the definitive merger agreement signed on July 23, 2025, with MCME Carell Holdings, LP, for a total transaction value of approximately $1.1 billion. This isn't just a simple sale; it requires meeting specific conditions, chief among them being the divestiture of certain assets. The common stock shareholders are set to receive $7.00 per share in cash at closing. For the preferred shareholders, the deal calls for $25.00 per share in cash plus all accrued and unpaid distributions. The Board of Directors unanimously approved this agreement, which is expected to wrap up in the fourth quarter of 2025.

Leasing and renewing office space; signed 355,000 sq ft in Q2 2025

Despite the pending merger, leasing activity remained a critical function through the second quarter of 2025. City Office REIT executed approximately 355,000 square feet of new and renewal leases during Q2 2025. That total breaks down into 163,000 square feet of new leasing and 192,000 square feet of renewals. As of June 30, 2025, the in-place occupancy stood at 82.5%, but when you factor in those recently signed leases that haven't started yet, the effective occupancy was 86.8%. The total portfolio size at that time was 5.4 million net rentable square feet. That's a lot of square footage to manage while simultaneously preparing for a sale.

Active asset management and value-add capital improvement projects

The company's core strategy involves active management to maintain and enhance asset value, which is crucial for maximizing sale proceeds or future performance, depending on the outcome. This includes ongoing capital improvement projects. Even with the merger pending, operational metrics show the underlying business was performing, with Same Store Cash Net Operating Income (NOI) increasing 1.8% for the three months ended June 30, 2025, compared to the same period in 2024. The company also completed a property loan renewal for its Greenwood Blvd property in Orlando, Florida, extending the maturity by an additional three years to May 2028 on the $20.1 million loan.

Here's a quick look at the Q2 2025 operational snapshot:

Strategic property acquisitions and dispositions (e.g., Phoenix portfolio sale for $296.0 million)

Divestitures are front and center, specifically to satisfy the merger conditions. City Office REIT entered into an agreement to sell its entire Phoenix portfolio for an aggregate price of $296.0 million. The first closing, which occurred on August 15, 2025, involved six properties, generating gross proceeds of $266 million. The final asset, Pima Center, remains under contract for a prospective gross sales price of $30 million. This activity aligns with their focus on Sun Belt markets, but the immediate goal is disposition to facilitate the merger. The company maintains controlling interests in approximately 4.2 million square feet of office properties following the first phase of the sale.

Maintaining REIT compliance and investor communication

As a Real Estate Investment Trust (REIT), compliance is a non-negotiable activity. This involves adhering to tax requirements and ensuring proper governance, overseen by the leadership team and the Board of Directors. Investor communication is also key, especially during a merger. The company released its Q2 2025 results on July 31, 2025, and provided details on the merger agreement via an 8-K filing on July 24, 2025. You should note that the Board resolved to suspend future quarterly common stock dividend payments through the expected close of the Merger, though preferred stock dividends continue.

• Common Stock Dividend: Suspended through expected Merger close.
• Preferred Stock Dividend (Series A): Regular quarterly dividends continued.
• SEC Filings: Proxy statement and Form 8-K filings were used to detail the Transaction.
• Debt Management: Completed a loan renewal extending maturity by three years.

Finance: draft 13-week cash view by Friday.

City Office REIT, Inc. (CIO) - Canvas Business Model: Key Resources

You're looking at the core assets City Office REIT, Inc. (CIO) relies on to execute its strategy in the office real estate sector. These aren't just buildings; they are the foundation of its revenue generation, so let's look at the hard numbers as of the second quarter of 2025.

The physical asset base is substantial, anchored by a portfolio totaling 5.4 million net rentable square feet of office space as of June 30, 2025. This portfolio is strategically concentrated in what City Office REIT views as high-growth Sun Belt and Western U.S. markets. This geographic focus is a key resource in itself, aiming to capture favorable demographic trends and employment growth.

The operational performance of these assets is reflected in the occupancy rate. As of Q2 2025, the in-place occupancy stood at 82.5%. If you include leases already signed but not yet commenced, that figure moves up to 86.8% as of the same date.

When we look at the capital structure, as of June 30, 2025, City Office REIT had total principal outstanding debt of approximately $649.2 million. A key feature of this debt is that approximately 81.9% was fixed rate or effectively fixed rate due to interest rate swaps. The weighted average interest rate on this debt was 5.2%, with a weighted average maturity of approximately 1.4 years.

The management structure itself is a resource. City Office REIT operates with an internal management team, which is different from many peers who use external advisors. However, it still leverages expertise through City Office REIT Advisors LP, an affiliate of Shorenstein. The leadership team, headed by President and Chief Executive Officer Oliver Slone, oversees the deployment of capital and portfolio optimization.

Here's a quick snapshot of the key portfolio statistics from the June 30, 2025, report:

The expertise within the team is further evidenced by leasing activity and operational improvements. For instance, during the second quarter of 2025, City Office REIT executed approximately 355,000 square feet of new and renewal leases. For those renewal leases signed in the quarter, the weighted average effective annual rent was $33.02 per square foot.

The geographic concentration of the real estate assets is a critical intangible resource, focusing on markets that have shown strong demographic trends. You can see the distribution of the portfolio by market area, based on data available around May 2025:

• Dallas, TX: 19% of NRA (Net Rentable Area)
• Orlando, FL: 25% of NRA
• Tampa, FL: 10% of NRA
• Phoenix, AZ: 9.7% of NRA
• San Diego, CA: 9.9% of NRA
• Denver, CO: 13.3% of NRA

City Office REIT, Inc. (CIO) - Canvas Business Model: Value Propositions

City Office REIT, Inc. provides high-quality office space concentrated in desirable, high-growth secondary markets across the Sun Belt and Southeastern U.S., including metropolitan areas like Atlanta, Charlotte, Austin, Dallas, and Houston. This focus targets areas experiencing favorable demographic trends and employment growth.

A key value is the stability derived from long-term tenant commitments. For new leases signed in the second quarter of 2025, City Office REIT secured a weighted average lease term of 8.4 years. This contrasts with renewal leases signed in the same period, which had a weighted average term of 4.0 years.

The company demonstrates pricing power through favorable re-leasing spreads. Over the twelve months ending March 31, 2025, City Office REIT achieved a healthy 8.5% cash re-leasing spread on renewals.

Value creation is pursued through strategic redevelopment and repositioning. For instance, subsequent to the first quarter of 2025, City Office REIT entered an agreement to redevelop the standalone parking garage at its City Center property in St. Petersburg into a planned 49-story residential condominium and mixed-use tower.

City Office REIT maintains a diversified tenant base across several key sectors, aiming to mitigate risk associated with any single industry. The portfolio, as of March 31, 2025, contained 5.4 million net rentable square feet. Specific tenant data from investor materials around that time shows a breakdown by Net Rentable Area (NRA) for top tenants, illustrating this diversification.

The general tenant profile includes major representation from professional services, technology, and healthcare industries. The leasing activity in the second quarter of 2025 involved executing approximately 355,000 square feet of new and renewal leases.

Here's a quick look at the leasing metrics from the second quarter of 2025:

• New leases effective annual rent: $31.45 per square foot.
• Renewal leases effective annual rent: $33.02 per square foot.
• In-place occupancy as of June 30, 2025: 82.5%.
• Same Store Cash NOI increase (Q2 2025 vs Q2 2024): 1.8%.

City Office REIT, Inc. (CIO) - Canvas Business Model: Customer Relationships

City Office REIT, Inc. manages customer relationships across its portfolio of 16 properties comprising 33 office buildings totaling 4.2 million square feet as of September 30, 2025.

The primary relationship mechanism involves dedicated property management and leasing teams executing long-term contractual relationships cemented by multi-year lease agreements. Proactive efforts aim to maintain high occupancy, which stood at 84.5% leased as of September 30, 2025.

Direct negotiation secures major renewals and expansions, providing cash flow certainty. For example, a tenant at the Terraces property in Dallas signed a 60,000 square foot lease, extending their commitment until 2036 and adding 16,000 square feet, pushing that property to 95% occupancy. At Bloc 83 in Raleigh, a 29,000 square foot tenant lease commencement elevated the office component's occupancy to 98%.

In another negotiation, a tenant kept 31,000 square feet expiring in 2028 and extended the remaining 58,000 square feet to 2033. This focus on retention is critical, especially as the Company manages upcoming debt maturities, including two property loans in the fourth quarter of 2025 and a credit facility maturing in November 2025 with an option to extend to November 2026.

Investor relations are managed until the merger close. City Office REIT, Inc. stockholders approved the acquisition by MCME Carell Holdings, LP on October 16, 2025, for $7.00 per share in cash. In alignment with the pending transaction, the Board resolved to suspend future quarterly common stock dividend payments. However, the Board authorized a quarterly dividend of $0.4140625 per share for the 6.625% Series A Preferred Stock for the third quarter of 2025, payable on October 24, 2025.

• Portfolio as of September 30, 2025: 84.5% leased.
• Leasing activity in Q2 2025 included 192,000 square feet of renewals.
• A lease extension at Block 83 increased rent by 6% to $42.50 per square foot.
• The common stock acquisition price is $7.00 per share in cash.

City Office REIT, Inc. (CIO) - Canvas Business Model: Channels

You're looking at how City Office REIT, Inc. (CIO) connects with its customers and capital markets as of late 2025, right before the planned privatization. Here's the breakdown of the channels they use to execute their business.

Direct internal leasing and asset management teams

The internal teams drive leasing and asset management across the portfolio, which as of June 30, 2025, contained 5.4 million net rentable square feet. The leasing execution during the second quarter of 2025 shows the direct output of these teams.

• Total leasing activity executed in Q2 2025: approximately 355,000 square feet.
• New leasing executed in Q2 2025: 163,000 square feet.
• Renewal leasing executed in Q2 2025: 192,000 square feet.
• In-place occupancy as of June 30, 2025: 82.5%.
• Occupancy including signed leases not yet occupied as of June 30, 2025: 86.8%.

Here's a quick look at the leasing metrics from the first half of 2025, which reflects the ongoing operational channel performance:

Commercial real estate brokers for tenant sourcing and transactions

While City Office REIT, Inc. uses internal teams, brokers are key intermediaries for sourcing transactions, as evidenced by the leasing volumes reported. The leasing activity is a direct result of these combined efforts.

• Total leasing activity for the first six months of 2025: 499,000 square feet (144,000 sq ft in Q1 + 355,000 sq ft in Q2).
• New leases signed in Q2 2025 carried a weighted average effective annual rent of $31.45 per square foot.
• Renewal leases signed in Q2 2025 carried a weighted average effective annual rent of $33.02 per square foot.

Investor Relations website and SEC filings for capital markets

The Investor Relations website and mandatory SEC filings serve as the primary channels for communicating with capital markets, especially leading up to the announced privatization.

• Latest 10-Q filing date (for quarter ending September 30, 2025): November 7, 2025.
• Stock ticker symbol on NYSE: CIO.
• The definitive merger agreement was announced on July 23, 2025.
• Stockholders approved the merger on October 16, 2025.
• The company's business address is SUITE 3210 - 666 BURRARD STREET, VANCOUVER, Canada.

Property websites and signage for local market visibility

Local market visibility is driven by the physical assets and their on-site presence, with specific property performance metrics indicating channel effectiveness.

• Office component occupancy at Bloc 83 in Raleigh reached 98%, including future leases, as reported in late 2024/early 2025 updates.
• The Terraces property in Dallas achieved 95% occupancy following a lease expansion.
• The company entered into an agreement in Q1 2025 to redevelop a portion of the City Center property in St. Petersburg, Florida.

Financial advisors (e.g., Raymond James) for the merger transaction

Financial advisors were critical channels for executing the major capital markets event of 2025.

• Raymond James & Associates, Inc. acted as an exclusive financial advisor to City Office REIT, Inc. for the merger.
• The total transaction value for the merger with MCME Carell was approximately $1.1 billion (US figures).
• The cash offer price per common share in the transaction was $7.00.
• Holders of the 6.625 per cent Series A Cumulative Preferred Stock were set to receive $25.00 per share in cash, plus accrued distributions.

City Office REIT, Inc. (CIO) - Canvas Business Model: Customer Segments

City Office REIT, Inc. (CIO) targets a customer base spanning both real estate users and capital providers, focusing on high-quality office assets in Sun Belt markets.

The primary operational customer segment is the tenant base occupying the physical real estate assets. As of June 30, 2025, the total portfolio contained 5.4 million net rentable square feet.

The tenant profile is described as a diversified base across several industries, which helps in generating stable rental income. This includes tenants from:

• Professional services
• Technology
• Healthcare

Leasing activity provides insight into the average commitment length sought by these tenants. For new leases signed in the first quarter of 2025, the weighted average lease term was 5.9 years. Renewal leases signed in the second quarter of 2025 had a weighted average lease term of 4.0 years.

The following table summarizes key portfolio metrics relevant to the tenant segment as of mid-2025:

City Office REIT, Inc. (CIO) also engages with developers and partners for specific, large-scale projects. A notable example is the agreement entered into with an affiliate of Property Markets Group (PMG) to redevelop a portion of the Company's City Center property in St. Petersburg, Florida, into a planned 49-story residential condominium and mixed-use tower.

The second major customer segment comprises the capital providers-the institutional and individual investors who hold the Company's securities. These investors are served through dividends and stock performance. The following data reflects shareholder distributions declared in mid-2025:

For context on the equity market valuation as of November 4, 2025, the market capitalization stood at $279M with a stock price of $6.90.

City Office REIT, Inc. (CIO) - Canvas Business Model: Cost Structure

You're looking at the hard costs City Office REIT, Inc. (CIO) faces to keep the lights on and the properties running in late 2025. This structure is heavily weighted toward debt service and property upkeep, which is typical for a REIT.

The most significant fixed cost component is the interest expense on its borrowings. As of June 30, 2025, City Office REIT, Inc. had total principal outstanding debt of approximately $649.2 million. A large portion of this, approximately 81.9%, was fixed rate or effectively fixed rate due to swaps. The cost of this leverage is reflected in the weighted average interest rate, which stood at 5.2% as of that same date. This rate directly impacts cash flow before property-level expenses.

Property operating expenses are a constant drain, though specific dollar amounts for utilities, maintenance, and taxes aren't broken out separately from the overall operational picture in the latest reports. What we do see are the costs associated with keeping the portfolio leased and maintained.

Capital expenditures and tenant improvement costs are essential for securing and retaining tenants across the 5.4 million net rentable square feet portfolio. For the quarter ending June 2025, the reported Capital Expenditures were $7.9Mn. Leasing activity costs are also material:

• Renewal leases signed in Q2 2025 carried a weighted average cost of $3.91 per square foot per year.
• New leases signed in Q2 2025 had a higher weighted average cost of $8.30 per square foot per year.

General and administrative (G&A) expenses for internal management are part of the overall operating structure, though a specific G&A dollar figure isn't isolated in the summary data provided. However, the impact of strategic corporate actions is clear. The definitive merger agreement entered into on July 23, 2025, set the transaction value at $7.00 per share of common stock. This strategic shift is reflected in the Q3 2025 results, where the net loss attributable to common stockholders was $5.7 million, which management noted was primarily driven by an impairment charge related to the sale of its Phoenix Portfolio. The cumulative net loss for the first three quarters of 2025 reached $110.58 million.

Here's a quick look at the key financial metrics related to these costs as of mid-to-late 2025:

The company also excludes certain costs from its adjusted metrics, which tells you what they consider non-recurring or non-operational for ongoing performance evaluation. These exclusions directly relate to cost structure components:

• Costs associated with tenant improvements.
• Leasing commissions.
• Capital expenditures funded by the entity contributing properties at closing.

To be fair, the merger transaction itself will likely generate specific legal and advisory fees not yet fully detailed in the operational results, but the asset disposition costs are already showing up in the Q3 loss figures. Finance: draft 13-week cash view by Friday.

City Office REIT, Inc. (CIO) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of City Office REIT, Inc.'s operations as of late 2025. Honestly, the revenue streams are pretty standard for a REIT, but the context of the pending merger and recent asset sales definitely colors the picture.

The most direct income comes from the properties themselves. For the second quarter of 2025, the reported Rental and other revenues hit $42.3 million. That number reflects the cash flow from the office spaces City Office REIT owned and operated during that period. It's important to note that as of June 30, 2025, the total portfolio was 5.4 million net rentable square feet, with an in-place occupancy rate of 82.5%, or 86.8% when including leases already signed but not yet commenced. That's the base of the revenue engine.

Beyond base rent, City Office REIT also pulls in revenue from other operational sources. These include Recoveries from tenants for operating expenses and property taxes, which are passed-through costs that boost the top line. Also, there are Lease termination fees from early tenant vacates, though we don't have a specific dollar amount for those fees in the latest reports, they are a recognized, albeit variable, component of the revenue mix.

A significant, non-recurring revenue source involves selling off assets. City Office REIT entered into an agreement to sell its entire Phoenix portfolio for an aggregate sale price of $296.0 million. To be fair, by the time of the Q3 2025 report, they had already completed the first closing on six of those properties for $266 million, which likely impacted that quarter's financial results, including a related impairment charge of $5.7 million on the net loss for Q3 2025.

For the equity holders, the preferred stock dividends are a fixed obligation that must be met before common shareholders see anything. The Series A Preferred Stock dividend was authorized at $0.4140625 per share for the second quarter of 2025, paid on July 24, 2025, and another payment of $0.4140625 per share was authorized for the third quarter, payable October 24, 2025. The common stock dividend, however, was suspended pending the close of the merger.

Here's a quick look at the key operational metrics that feed into those revenue numbers as of the end of Q2 2025:

The company's strategy, especially with the merger agreement at $7.00 per common share, means asset dispositions are a key part of realizing value right now. You can see the focus on optimizing the portfolio, which is a necessary step given the debt load of approximately $649.2 million as of June 30, 2025. The revenue streams are clearly segmented between recurring operations and strategic capital events.

The components of the revenue streams for City Office REIT, Inc. include:

• Rental and other revenues, reported at $42.3 million for Q2 2025.
• Recoveries from tenants for operating expenses and property taxes.
• Proceeds from strategic asset dispositions, such as the Phoenix sale agreement for $296.0 million.
• Lease termination fees from early tenant vacates.
• Fixed quarterly Preferred stock dividends of $0.4140625 per share.

Finance: draft 13-week cash view by Friday.