CTO Realty Growth announced that its 212,000‑square‑foot office building in Albuquerque, New Mexico, is now 100 % leased to two investment‑grade tenants: Fidelity and the State of New Mexico. The State of New Mexico expanded its lease from 44,000 sq ft to 98,000 sq ft, while Fidelity reduced its space to 114,000 sq ft as of November 30, 2025, creating a 10‑year primary term with two five‑year renewal options for each tenant.
The lease terms provide a stable, long‑term income stream. The blended annualized base rent is projected to rise by approximately 9 % when the State of New Mexico’s lease commences in mid‑2026, reflecting the higher quality of the tenant and the longer weighted‑average remaining lease term. The 10‑year primary term with options aligns with CTO’s strategy of securing long‑duration, high‑credit tenants in growth markets.
This leasing update marks the full occupancy of CTO’s last non‑core office building, signaling a strategic shift toward its core retail portfolio. By locking in two investment‑grade tenants, the company improves its occupancy profile and enhances the predictability of cash flows, supporting its broader repositioning agenda in Sun Belt markets. The 9 % rent increase is a material boost to the property’s revenue potential and aligns with the company’s goal of raising the average rent per square foot across its portfolio.
CTO’s Q3 2025 earnings already beat expectations, with revenue of $37.76 million versus an estimate of $37.69 million and an EPS of $0.03 against a forecast of $0.00. The leasing milestone adds further upside to the company’s revenue outlook, reinforcing the positive trajectory seen in the recent earnings beat and supporting the company’s confidence in its growth strategy.
CEO John P. Albright said the full lease “demonstrates the strength of our portfolio and the quality of our tenants. The longer weighted‑average remaining lease term and the projected rent increase provide a solid foundation for future growth.”
The announcement underscores CTO’s focus on high‑quality, long‑term leases in high‑growth markets, positioning the company for continued revenue expansion and portfolio optimization.
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