Newsletter: January 21
New Year, New Momentum: Inside Our Latest Office Outlook
A MESSAGE FROM THE CEO
As we kick off 2026, I want to thank you for being part of this journey. Your support, your trust, and your alignment with our long-term vision mean everything.
Last year didn’t bring flashy headlines or rapid acquisitions. And that was intentional.
We remained disciplined, focused, and hands-on, evaluating dozens of deals, improving operational systems, and preparing for the right opportunities rather than rushing into the wrong ones.
That groundwork is already paying off.
We’re starting 2026 by closing on our third investment through Streamline Investment Group IV, and we couldn’t be more excited.
This marks a new chapter, one where experience, strategy, and real alignment matter more than ever.
Medical office and Class B professional assets continue to prove their value, serving essential, in-person needs in a market still hungry for durable, income-producing space. And Phoenix remains at the center of it all.
If you’ve been waiting for timing, clarity, or conviction, this is it.
Let’s build something lasting this year.
OFFICE VACANCIES TURNING A CORNER
CBRE reports that U.S. office vacancy declined year-over-year for the first time since the pandemic, a milestone driven by a shift in both supply and demand fundamentals.
🔹 Q3 2025 Highlights:
• Vacancy fell to 18.8%, down from 19% a year prior
• Leasing activity rose 15% QoQ and 11% YoY
• Small occupiers are driving most demand
• Average lease size dropped 24%, while deal volume increased
What’s driving it? A slowdown in new construction, the demolition or conversion of older inventory, and rising renewal activity as tenants rethink relocation costs. At the same time, more businesses are returning not because of mandates, but because they see in-person collaboration as a competitive advantage.
This plays directly into Streamline’s strategy: acquiring multi-tenant Class B office assets in growth markets like Phoenix, tailored to the exact segment of the market driving this rebound.
PHOENIX OFFICE: TIGHT VACANCY, STRONG SALES
Despite national volatility, Phoenix continues to prove its strength as an investment destination. According to a new report from CommercialSearch, Phoenix ranked #8 nationally for total office sales activity since 2020, with 477 transactions closed over the past five years.
📊 Additional highlights:
• Phoenix’s peak was in 2021, with 141 office transactions closed
• Sales remained strong throughout 2022 and into early 2023
• The Valley continues to outperform peer markets in total deal volume—especially for value-add, suburban, and medical office assets
While many markets pulled back, Phoenix has remained a top-10 metro for investor confidence, driven by sustained population growth, diversified job creation, and resilient tenant demand in the Class B space.