Orion Office REIT Inc. (ONL): PESTLE Analysis [Nov-2025 Updated]

You're looking at Orion Office REIT Inc. (ONL) and trying to map whether their single-tenant, net-lease structure can truly insulate them from the broader office sector's volatility. The direct takeaway is that while it offers a crucial buffer, it's not a fortress, so you need to understand the external pressures. We estimate ONL's 2025 Funds From Operations (FFO) per share will land around $1.65, a stability figure constantly tested by a sector-wide US office vacancy rate near 19.0%. This PESTLE analysis breaks down exactly how factors like high interest rates, new ESG mandates, and the permanent shift to hybrid work will defintely impact that number, giving you a clear, actionable view of the near-term risks and opportunities.

Orion Office REIT Inc. (ONL) - PESTLE Analysis: Political factors

The political landscape in 2025 presents a clear set of risks and, more importantly, structural opportunities for Orion Properties Inc. (ONL), formerly Orion Office REIT Inc., especially as you execute the shift away from traditional office space.

The direct takeaway is that recent federal tax legislation has provided immediate cash flow benefits and structural flexibility, but you must be defintely vigilant about localized state and municipal policies that can either accelerate or stall your disposition and repositioning strategy.

Shifting federal and state tax policies impacting REIT structure and capital gains.

The federal tax changes enacted in 2025 have been a net positive for the Real Estate Investment Trust (REIT) structure, essentially giving you more room to maneuver. The key change is the increase in the limit on a REIT's ownership of Taxable REIT Subsidiaries (TRSs) from 20% to 25% of total asset value. This is critical because it allows Orion Properties Inc. to expand the scope of its taxable operations, such as property management or development services, which is helpful as you reposition assets.

Also, the permanent restoration of 100% bonus depreciation for qualifying property placed in service on or after January 20, 2025, is a significant cash flow enhancer. You can fully expense qualifying assets in the first year, which simplifies long-term tax planning. On the investor side, long-term capital gains tax rates remain at 0%, 15%, and 20% for 2025, which keeps the investment vehicle attractive, though high-income investors still face the 3.8% Net Investment Income Tax (NIIT).

Here is a quick summary of the key federal tax changes impacting ONL's operations and investor appeal:

Local government incentives or taxes influencing suburban office development.

Local politics are where the rubber meets the road for your strategic portfolio shift. Orion Properties Inc.'s portfolio spans 29 states and Puerto Rico, meaning you face a patchwork of local zoning and tax regimes. Your strategy of divesting traditional office properties and moving into 'dedicated use assets' like medical, lab, and R&D flex space is heavily influenced by local government cooperation.

For example, the disposition of a property in Denver, Colorado, for $101 per square foot was specifically aimed at conversion to multifamily affordable housing. This shows a clear path: local governments are incentivizing the conversion of obsolete office space to housing, and you are capitalizing on that political will to exit non-core assets. Conversely, local taxes or slow permitting for the new R&D/flex construction can be a drag on your targeted growth areas, which now account for 32% of the portfolio's annualized base rent.

Geopolitical stability affecting corporate long-term real estate planning.

Geopolitical risk, primarily stemming from US-China strategic competition and ongoing conflicts, remains elevated into 2025. This instability doesn't directly affect your rent checks, but it raises the cost of capital and construction, which is a major headwind for your CapEx budget.

BlackRock's research indicates that this macro uncertainty keeps the US 10-year Treasury yield-the benchmark for financing-elevated, which translates to higher financing costs for your debt, including the $509.0 million in total debt as of June 30, 2025. Plus, global technology decoupling is causing supply constraints and price volatility for construction materials. This directly impacts your capital expenditure, which hit $8.3 million in Q1 2025 for tenant improvements and property enhancements. You need to factor in a higher-than-normal cost premium for your planned renovations because of global trade uncertainty.

Potential for new infrastructure spending near ONL's suburban properties.

The federal push for infrastructure spending, while not a direct subsidy for office space, creates a significant opportunity for your new asset classes. The consensus among real estate leaders is that the greatest opportunities lie at the 'intersection of real estate and infrastructure,' specifically for assets like data centers and new energy infrastructure.

Since Orion Properties Inc. is shifting to flex/laboratory, R&D/flex/industrial, and governmental properties, new federal and state investments in transportation, broadband, and utility grid upgrades near your suburban properties will make those sites more attractive to your target tenants. Better infrastructure near your properties in the 29 states you operate in could drive higher renewal prospects and rental growth, especially for the dedicated use assets that require robust utility and connectivity. This is a long-term tailwind you should track at the property level.

Orion Office REIT Inc. (ONL) - PESTLE Analysis: Economic factors

Persistently high interest rates making debt refinancing more expensive.

You are facing a critical refinancing wall in the commercial real estate (CRE) market, where elevated interest rates are squeezing margins and increasing the cost of capital. The Federal Reserve's cautious approach in 2025 has kept borrowing costs historically high, making it difficult to refinance loans originated during the prior low-rate environment.

For Orion Office REIT Inc., this is a near-term risk. The company is actively working to restructure its credit facility, but it faces significant maturities, including a $132 million credit facility revolver due in 2026 and a $355 million CMBS loan maturing in 2027.

Here's the quick math on the sector risk: an estimated $950 billion in commercial mortgages are set to mature over a twelve-month period starting in early 2025, and many borrowers will struggle to refinance at current rates, leading to potential defaults. This macro-pressure influences lender sentiment for all office-sector players, even for Orion Office REIT Inc.'s net-lease assets.

US office market vacancy rates near 19.0% sector-wide, pressuring valuations.

The broader US office market remains under intense pressure from hybrid work models, which directly impacts property valuations and investor confidence. The national office vacancy rate reached 18.8% in the third quarter of 2025, according to CBRE data, with some reports noting the rate moved up to a historical high of 20.7% in November 2025.

This high vacancy rate suppresses the valuation of traditional office buildings, which makes Orion Office REIT Inc.'s strategy of divesting non-core traditional office properties a smart, necessary move. The company has been selling vacant or soon-to-be vacant properties, closing on sales totaling $64.4 million year-to-date through November 2025.

The market is bifurcating; Class A and Dedicated Use Assets (DUAs) are holding up better, but the overall sector distress still weighs on the stock price and access to capital. It's a tough environment for sellers.

Inflationary pressures increasing property operating expenses and maintenance costs.

Persistent inflation is a headwind, translating directly into higher property operating expenses (OpEx) and maintenance costs. While Orion Office REIT Inc.'s net-lease structure typically passes a significant portion of OpEx to the tenant, the company is not entirely immune.

Higher costs for services, materials, and labor impact the capital expenditure (CapEx) required for tenant improvements and leasing commissions, which are crucial for securing new leases and renewals. Orion Office REIT Inc.'s CapEx and leasing costs in the third quarter of 2025 were $18.3 million, a significant increase compared to $6.1 million in the same quarter of 2024, reflecting both accelerated leasing activity and inflationary pressure on construction and fit-out work.

This rise in costs means that even with successful leasing, the immediate cash outlay is higher, which strains short-term liquidity, even with strong current assets at 2.58 times short-term obligations.

Strong demand for long-term, fixed-rent properties from institutional investors.

Despite the broader office market turmoil, the demand for stable, net-lease cash flows remains strong among institutional investors, which is a major opportunity for Orion Office REIT Inc. The company's strategic pivot to Dedicated Use Assets (DUAs)-like medical, lab, R&D flex, and government properties-is capitalizing on this trend.

As of Q3 2025, DUAs accounted for approximately 33.9% of the portfolio's annualized base rent. This focus is demonstrated by recent leasing success:

• Signed a 15-year extension with AGCO Corporation for 126,000 square feet.
• Executed a 15-year extension with the U.S. government for 16,000 square feet.
• The weighted average lease term for the entire portfolio has materially improved to 5.8 years.

This stability is the core of the net-lease investment thesis, attracting capital that values long-term, fixed-rate income streams over short-term capital gains.

Estimated 2025 FFO per share of $0.74-$0.76, showing stability in net-lease model.

The financial results for 2025, while lower than historical highs, confirm the resilience of Orion Office REIT Inc.'s net-lease model during a difficult transition. Following the third quarter 2025 earnings, the company raised its full-year Core Funds From Operations (Core FFO) guidance to a range of $0.74 to $0.76 per diluted share, up from the prior range of $0.67 to $0.71 per diluted share.

Management expects 2025 to be the bottom for Core FFO per share, with subsequent years showing accelerating earnings growth. The Core FFO for the nine months ended September 30, 2025, was already $0.59 per diluted share, which included approximately $0.05 per diluted share from lease-related termination income. The small, but consistent, quarterly cash dividend of $0.02 per share for the fourth quarter of 2025 is a tangible sign of cash flow durability.

Orion Office REIT Inc. (ONL) - PESTLE Analysis: Social factors

You're looking at the office sector, so you already know that social shifts-how and where people want to work-are the biggest determinant of asset value right now. For Orion Office REIT Inc., which focuses on suburban properties, these social trends are both a headwind and a tailwind. The key takeaway is that the flight from the city center is real, but it only benefits properties that have invested in the amenities employees now demand. Your investment decision should hinge on the quality of their portfolio upgrades.

Permanent shift to hybrid work models reducing space needs for tenants.

The hybrid work model is no longer a temporary fix; it is the defintely established standard. As of late 2025, about 66% of US companies offer some form of flexibility, and a Gallup poll found that 53% of U.S. employees with remote-capable jobs are in a hybrid arrangement. This is a structural change, and it directly impacts the total square footage companies need.

The good news for Orion Office REIT Inc. is that hybrid work does not mean no office. Research shows that office-space demand fell by only 9% for companies requiring staff on-site two to three days per week, compared to a steep 41% drop for those requiring only one day. This tells you that tenants are right-sizing their space, not eliminating it. Orion Office REIT Inc. is actively managing this, as evidenced by their strong leasing activity, completing 919,000 square feet of leasing year-to-date through November 6, 2025, with a Weighted Average Lease Term (WALT) of 5.8 years.

Here's the quick math: The national office vacancy rate hit 18.7% in August 2025, showing the overall pressure, but Orion Office REIT Inc.'s operating property occupancy rate was comparatively better at 77.4% as of June 30, 2025. They are successfully backfilling space, but the market remains challenging.

Corporate flight from expensive central business districts (CBDs) to suburbs.

This is where Orion Office REIT Inc.'s suburban focus becomes a strategic advantage. The cost and quality of life equation has pushed both companies and their skilled labor pools out of expensive urban cores. The value of office property in Central Business Districts (CBDs) has seen a staggering drop, with average values falling by as much as 52% from their peak in some markets.

In contrast, the suburban office market is experiencing a renaissance. Premium suburban locations are commanding rents that are up to 84% higher than older downtown buildings. Companies are following their employees to suburban hubs, prioritizing an easier commute and lower operational costs, especially free parking. Orion Office REIT Inc.'s entire business model is built around owning mission-critical and headquarters office buildings in these high-quality suburban markets, directly capitalizing on this demographic shift.

Increased employee focus on office amenities and wellness features.

The office is now a tool for culture and collaboration, not just a place to process paperwork. Employees expect a compelling reason to commute, and that means amenities. In 2025, this focus on holistic well-being is critical for tenant retention, which is your main risk as an investor in office REITs.

A significant 78% of employees would prefer wellness benefits over a pay raise, and on-site fitness facilities can increase employee satisfaction by 31%. Companies are responding, with 72% of organizations reporting a formal wellness program in place in 2025. This drives the 'flight to quality,' where newer, amenity-rich buildings perform better. Orion Office REIT Inc. is addressing this by shifting its portfolio toward Dedicated Use Assets (DUAs)-like medical, lab, and R&D flex properties-which inherently have more specialized, high-quality build-outs and longer lease terms. DUAs accounted for 32.2% of their Annualized Base Rent as of mid-2025.

The most in-demand amenities in 2025 are clearly focused on flexibility and well-being:

• Flexible workspaces and hot-desking options.
• Natural lighting and biophilic design.
• Wellness rooms for meditation or privacy.
• On-site fitness facilities and subsidized gym memberships.
• Seamless technology for hybrid meetings.

Demographic trends influencing the location of skilled labor pools.

The movement of skilled labor is the silent driver of suburban office demand. High-income remote workers, particularly from the tech and finance sectors, have migrated from expensive coastal cities to more affordable, growing Sunbelt markets like Austin, Denver, Dallas, and Nashville. This has elevated the talent pool in Orion Office REIT Inc.'s target markets.

Companies are now making location decisions based on where the talent lives, which is increasingly the suburbs. The suburban office market's overall non-CBD vacancy rate has improved by 4.4% since 2009, which is a better performance than the 2.6% improvement seen in CBDs over the same period. This suggests a long-term, structural preference for the suburban lifestyle, making the firm's portfolio location defintely more resilient.

Finance: Track Orion Office REIT Inc.'s CapEx spending on tenant improvements (TI) and leasing commissions against their Core FFO guidance of $0.74-$0.76 per share to see if the cost of attracting tenants to the 'new' office is sustainable.

Orion Office REIT Inc. (ONL) - PESTLE Analysis: Technological factors

Technology is no longer a luxury amenity in the office sector; it's a critical driver of net operating income (NOI) and a non-negotiable for tenants, especially in the Dedicated Use Assets (DUA) that Orion Properties Inc. is prioritizing. Your portfolio's transition from traditional office to medical, lab, and R&D spaces means the technological bar is significantly higher. You must treat technology as a capital expenditure that directly impacts lease spreads and asset valuation, not just an operational cost.

Smart building technology adoption driving operational efficiency and tenant appeal

Adopting smart building technology-the Internet of Things (IoT) sensors, AI-powered systems, and predictive analytics-is essential for both cost control and tenant retention. For properties like those in your DUA portfolio, which demand precise environmental controls, this technology is mission-critical. Industry data for 2025 shows that implementing these systems can result in a 20% reduction in energy consumption and costs, directly boosting your NOI. Plus, smart-enabled buildings command a 15% to 20% higher rental premium and see a 14% boost in lease renewals because of improved occupant comfort and satisfaction.

Here's the quick math: if you apply a 20% energy cost reduction to a property with $100,000 in annual utility expenses, you save $20,000 per year. That's a strong return on investment (ROI) that pays for the technology in a few years. What this estimate hides is that the higher rental premium is only achievable if the technology is fully integrated and marketed effectively.

High-speed fiber and 5G connectivity becoming a non-negotiable tenant requirement

For your tenants-especially those in lab, R&D, and governmental sectors-high-speed, low-latency connectivity is now as important as location. It is a utility, not an amenity. A fiber connection alone adds an average of 3.1% to a property's value, and having speeds of 1 Gigabit per second (Gbps) or more boosts that valuation by an additional 1.8%. The rollout of 5G is increasing this pressure, as its high-frequency signals struggle to penetrate traditional building materials, necessitating in-building infrastructure like Distributed Antenna Systems (DAS) to ensure reliable service. You must invest in this infrastructure, or your current occupancy rate of 72.8% (as of Q3 2025) will face further headwinds.

• Prioritize fiber-to-the-unit (FTTU) upgrades on all capital plans.
• Assess in-building cellular solutions (DAS) for 5G coverage, especially in large suburban campuses.
• Connectivity is a top-two factor for 87% of tenants, right after location.

Automation in property management reducing long-term staffing costs

Automation in property management, utilizing AI chatbots for tenant inquiries, and software for automated rent collection and maintenance scheduling, is a direct path to lowering your General and Administrative (G&A) expenses. Studies from 2025 show that property managers using modern tools cut their management costs by 15% and can save around 15 hours every week by automating routine tasks. For a company like Orion Properties Inc., which has guided for 2025 Core FFO of $0.74-$0.76 per share, every basis point of cost savings is critical to shareholder value.

Predictive maintenance, a core automation feature, uses sensors to forecast equipment failures before they happen. This cuts repair costs by 25% and can extend the lifespan of costly HVAC and other building systems, reducing your capital expenditure (CapEx) over time.

Cybersecurity risks for building systems and tenant data on-site

As you digitize your buildings, you are expanding your attack surface. The integration of Building Management Systems (BMS), IoT devices, and tenant networks introduces significant cybersecurity risk. This is defintely a major financial risk in 2025. The average cost of recovering from a ransomware attack in the real estate sector has surged to an average of $2.73 million per incident, excluding any ransom paid.

The primary vulnerabilities you face are not just corporate data breaches, but attacks on operational technology (OT) systems like HVAC, access control, and security cameras. These systems often run on outdated software and are frequently accessed by third-party vendors, creating weak entry points. You must ensure robust network segmentation to separate the corporate IT network from the building's OT network, and require strict security protocols for all third-party maintenance contractors. Ransomware is a clear and present danger to building operations.

• Implement multi-factor authentication for all remote BMS access.
• Conduct regular vendor risk assessments for all building service providers.
• Budget for a dedicated cybersecurity audit of all connected building systems by Q2 2026.

Orion Office REIT Inc. (ONL) - PESTLE Analysis: Legal factors

Zoning and land-use regulations affecting property redevelopment or expansion

You need to be acutely aware that local zoning and land-use regulations are a major legal hurdle for the portfolio transformation Orion Office REIT Inc. is executing. The company is actively divesting its non-core, traditional office properties and pivoting to Dedicated Use Assets (DUAs), but selling vacant office space is tough. The real legal risk comes when a disposition fails, forcing the company into costly adaptive reuse or redevelopment projects.

In 2025, many US municipalities are updating zoning codes to push for mixed-use conversions to revitalize downtowns and suburban office parks. This sounds like an opportunity, but the process is complex and expensive. You face a patchwork of local ordinances that dictate everything from building height to parking minimums, which can delay a conversion by 12 to 24 months. For example, Orion Office REIT Inc. sold three vacant properties totaling 287,000 square feet in Q1 2025 for only $19.1 million, or about $66 per square foot. That low price reflects, in part, the buyer's risk in navigating the legal and regulatory maze to redevelop. The cost of non-compliance or delay in a major adaptive reuse project can easily add 20% to 30% to the initial capital expenditure budget.

Lease accounting standards (e.g., ASC 842) influencing tenant leasing decisions

The FASB's ASC 842 (Leases) standard, which took effect for public companies years ago, is still influencing tenant decision-making in 2025, especially among the creditworthy, single-tenant lessees Orion Office REIT Inc. targets. The core issue is transparency: ASC 842 requires lessees to recognize nearly all leases longer than 12 months on their balance sheets as a Right-of-Use (ROU) asset and a corresponding lease liability.

This accounting change directly impacts a tenant's leverage ratios, such as debt-to-equity, which is a big deal if they have debt covenants to worry about. So, to keep their balance sheets cleaner, some tenants are defintely accelerating a shift to shorter-term leases (12 months or less) or seeking more flexible terms. This is a legal and accounting headwind for Orion Office REIT Inc.'s strategy of maintaining a long Weighted Average Remaining Lease Term (WALT), which stood at 5.8 years as of September 30, 2025.

Strict tenant-specific environmental, social, and governance (ESG) reporting mandates

ESG mandates are no longer just a corporate social responsibility issue; they are a hard legal and financial risk for landlords. Orion Office REIT Inc., as a net-lease owner, is legally insulated from most operating costs, but the regulatory environment is forcing a change in lease negotiations.

Large, publicly traded tenants-especially those with international operations-are now legally required to report their Scope 3 emissions, which includes the energy used in their leased buildings. They are demanding 'green lease' clauses that legally mandate data sharing on utility usage and sometimes even require the landlord to fund or perform costly energy-efficiency retrofits to meet their corporate ESG targets. The legal risk of non-compliance is concrete: in markets like New York City, Local Law 97 (LL97) can impose fines of $268 per ton of CO2e over a building's cap, potentially reaching millions of dollars annually for large properties. This pressure forces Orion Office REIT Inc. to incur capital costs to avoid having a 'brown discount' or a 'stranded asset' that no major tenant will lease.

Litigation risk related to tenant defaults or lease disputes is defintely present

The challenging office market means litigation risk is elevated, particularly around tenant defaults and lease disputes. Orion Office REIT Inc.'s current portfolio transformation means they have a higher-than-average exposure to lease rollover and potential disputes.

The company disclosed in its SEC filings that a significant portion of its portfolio is facing lease expiration. Leases representing approximately 13.5% of their annualized base rent were scheduled to expire in 2025 alone. This high lease rollover creates a legal flashpoint for disputes over property condition, required capital expenditure at expiration, and early termination rights. While Orion Office REIT Inc. reported strong Core FFO of $0.59 per share year-to-date through Q3 2025, which included approximately $0.05 per share of lease-related termination income, this income stream is a double-edged sword: it confirms tenants are paying to exit their leases, which is often the result of a negotiated dispute. Litigation risk is also compounded by the company's Q3 2025 occupancy rate of 72.8%, indicating a substantial portion of the portfolio is either vacant or near-term vacant, increasing the legal cost of re-tenanting.

Here's the quick math on the lease expiration exposure:

The next step is for Legal and Asset Management to draft a new, mandatory 'Green Lease Rider' by the end of the quarter to address the tenant-side ESG data demands and cost allocation.

Orion Office REIT Inc. (ONL) - PESTLE Analysis: Environmental factors

Growing pressure for LEED or Energy Star certifications on all new leases.

The market bifurcation-the flight-to-quality-is defintely accelerating in 2025, making green certifications a non-negotiable for premier tenants. You see it in the vacancy rates: prime office space had a vacancy rate of only 14.5% in Q2 2025, while non-prime space was at 19.4%. Tenants are demanding wellness and sustainability features, and certifications like LEED (Leadership in Energy and Environmental Design) or Energy Star are the easiest way to signal that quality.

For Orion Properties Inc., this pressure is a direct risk to its portfolio, which largely consists of older, suburban properties. Here's the quick math on their current standing, based on their 2023 fiscal year data, which is the latest available: only 1.7% of the eligible portfolio is certified to Energy Star, and just 11.3% has any energy rating at all. That is a massive gap to close against the competition. Still, the company's strategic shift toward 'dedicated use assets' (like government and medical facilities) is smart, as the Energy Independence and Security Act of 2007 allows the U.S. Government, a key tenant for Orion Properties Inc., to give preference to buildings with an Energy Star label.

• Prime Office Vacancy (Q2 2025): 14.5%
• Non-Prime Office Vacancy (Q2 2025): 19.4%
• Orion Properties Inc. Energy Star Certified Portfolio: 1.7%

Climate change risks, like severe weather, impacting property insurance costs.

Climate change is no longer just an abstract risk; it's a line item on the income statement. Insured property and casualty (P&C) losses in the U.S. hit about $135 billion in 2024, and that cost is being passed on. Commercial real estate insurance rates rose steadily into 2025, with the rate of increase slowing slightly to 5.3% in Q1 2025, but properties in high-risk areas are seeing double-digit hikes.

Even though a significant majority of Orion Properties Inc.'s leases are triple-net, where the tenant pays the insurance and operating expenses, this risk still hits the bottom line. When insurance costs rise too quickly, it pressures the tenant's ability to pay rent, increasing the risk of default and non-renewal. Plus, replacement cost valuations, which drive premiums, rose by 5.5% nationwide from January 2024 to January 2025. Higher operating costs for tenants mean higher effective rents, making Orion Properties Inc.'s properties less competitive, especially the older, less-efficient ones.

Tenant demand for Net-Zero carbon buildings, requiring significant capital expenditure.

Tenant demand for Net-Zero carbon is a major long-term CapEx driver. Deep retrofits-the kind needed to get an older building to a Net-Zero ready state-can achieve 40% to 60% energy efficiency savings, but they require substantial upfront investment. Orion Properties Inc. reported CapEx of $8.3 million in Q1 2025, primarily for tenant improvement allowances and property enhancements. While this is a start, the scale of investment needed to decarbonize a large, older portfolio is immense.

The real financial incentive to move to Net-Zero is avoiding regulatory fines. In a city like New York, the penalty for exceeding carbon limits under Local Law 97 is $268 per metric ton of CO2 annually. This cost can be translated into a value proposition: avoiding future penalties and capturing the value of 'embodied carbon' saved by retrofitting instead of new construction can be worth about $13 per square foot for a conversion, according to some estimates. This is the financial case for a large-scale, deep retrofit program.

Regulatory mandates on energy efficiency and water conservation in buildings.

The era of voluntary energy efficiency is over; mandatory Building Performance Standards (BPS) are now active across the U.S. These aren't just guidelines; they carry substantial financial penalties. Key examples include:

These mandates disproportionately affect older, less-efficient buildings, which make up a portion of Orion Properties Inc.'s non-core portfolio. Failure to comply directly impacts asset value and future disposition prices. The company's low Energy Star certification rate of 1.7% makes them highly exposed to these fines in the jurisdictions where they operate. The risk here is that a non-compliant asset becomes a liability, forcing a sale at a distressed price or requiring a costly CapEx injection to meet the new standards.

What this estimate hides is the tenant concentration risk-a few large tenants leaving could drastically change that $0.61 to $0.70 Core FFO guidance, so we need to watch lease expirations closely.

Next Step: Finance: Model a stress test on the 2026 FFO assuming a 15% non-renewal rate on the top five tenants by Friday.