SL Green Realty (SLG) BofA Securities 2025 Global Real Estate Conference summary

Market momentum and leasing trends

• Over 1.5 million sq ft leased year-to-date, with a target to exceed 2 million sq ft for the year and 500,000 sq ft expected in Q3.

• Midtown, especially Park Avenue and Grand Central, is leading the recovery, with rising rents and declining availability, particularly in upper mid-price buildings.

• Tech, especially AI companies, are driving demand in Midtown South, while financial and legal firms dominate new construction demand.

• Tenant demand is up by 5 million sq ft year-over-year, with many tenants seeking immediate or near-term occupancy.

• Core Manhattan markets show improving fundamentals, with asking rents and vacancy rates stabilizing or improving across submarkets.

Investment and capital markets

• Recent acquisitions include a new development site at 346 Madison Avenue, with plans to move quickly through planning and approvals.

• Transaction market is opening up, driven by improved CMBS demand and investor FOMO, with fundamentals now guiding activity.

• Financing markets for New York office have recovered, with more banks and investors showing interest, especially in New York-specific assets.

• Debt fund activity remains strong, with a focus on newly capitalized deals and targeted mid-teens returns.

• International capital, especially from Asia, is returning more aggressively than domestic capital.

Supply, demand, and rent dynamics

• Availability rates in core Midtown submarkets are dropping, with Park Avenue at 5% and Midtown overall at 11%.

• No significant new office deliveries expected before 2023; conversions could remove up to 40-50 million sq ft from inventory by 2030.

• Concessions are stable or tightening in strong submarkets, with some ability to reduce TIs and free rent as rents rise.

• Large blocks of space are scarce, pushing tenants toward renewals, expansions, or campus solutions.

• Return-to-office mandates are accelerating, with most industries now requiring more in-person attendance.