Paul McDowell, president and CEO of Orion Properties Inc. (NYSE: ONL), sat down for a video interview during Nareit’s REITworld: 2025 Annual Conference in Dallas, Dec. 8–11.
Orion Properties’ strategy for 2026 builds on multi-year efforts to reposition its office portfolio following its spin-off from the Realty Income (NYSE:O)–VEREIT merger. CEO Paul McDermott said the company has focused on right-sizing the portfolio by selling vacant assets with limited long-term prospects, strengthening the balance sheet, and driving leasing activity.
With office market conditions showing signs of improvement, Orion now sees an opportunity to accelerate these initiatives, including selective acquisitions.
Capital deployment is increasingly targeted toward “dedicated use” office properties, which include government-leased properties for agencies including the FBI and Social Security Administration, as well as flex industrial and laboratory assets.
While competition for such assets remains and pricing gaps persist between buyers and sellers, Orion is finding deal flow and has recently completed and pursued acquisitions. McDermott highlighted a gradual but steady office recovery, pointing to sharply higher leasing volumes since 2023 as evidence that demand is stabilizing and beginning to return.