Company: CIO
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000950170-25-023714
Chunk: 61

Company: City Office REIT, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 6
Chunk 61
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 WeWork leases at the property. Lastly, revenue at Canyon Park decreased by $1.5 million due to the reversal in the prior year of an accrued liability for a tenant improvement reimbursement that was no longer owed as the claim period had expired. Offsetting these decreases, revenue increased year over year at Bloc 83, Park Tower, and Mission City by $0.9 million, $0.8 million and $0.8 million, respectively, due to higher occupancy. Revenue also increased at Block 23 by $0.7 million primarily due to a write-off taken in the prior year related to the WeWork departure. The remaining properties’ rental and other revenues were relatively unchanged in comparison to the prior year period.Operating Expenses Total Operating Expenses. Total operating expenses consist of property operating expenses, general and administrative expenses and depreciation and amortization. Total operating expenses increased $4.6 million, or 3%, to $152.4 million for the year ended December 31, 2024, from $147.8 million for the year ended December 31, 2023. The increase was primarily due to a $8.5 million impairment of real estate which was recorded in the fourth quarter of 2024. The impairment was related to the write down of the carrying amount of Superior Pointe to fair value less cost to sell. Offsetting this increase, the dispositions of 190 Office Center in May 2023 and Cascade Station in June 2024 decreased total operating expenses by $1.9 million and $1.4 million, respectively. Total operating expenses also decreased by $1.3 million at Block 23 primarily due to lower depreciation as a result of a write-off taken in 

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 the prior year related to the WeWork departure. The remaining properties’ total operating expenses were $0.7 million higher in comparison to the prior year period, primarily due to inflation.Property Operating Expenses. Property operating expenses are comprised mainly of building common area and maintenance expenses, insurance, property taxes, property management fees, as well as certain expenses that are not recoverable from tenants, the majority of which are related to costs necessary to maintain the appearance and marketability of vacant space. In the normal course of business, property expenses fluctuate and are impacted by various factors including, but not limited to, occupancy levels, weather, utility costs, repairs, maintenance and re-leasing costs. Property operating expenses decreased $0.5 million, or 1%, to $69.5 million for the year