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SL Green Secures Leases & Announces Series of Transactions

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Key Takeaways

  • SLG has signed 2.3M sq. ft. of 2025 Manhattan leases, with another 1.2M sq. ft. in the pipeline.
  • Q4 2025 leases span One Madison Avenue, 280 Park Avenue, 1185 Avenue, 245 Park Avenue and 800 Third Avenue.
  • SLG also acquired full ownership of 800 Third Avenue and extended its $177M mortgage to February 2031.

SL Green Realty Corp. (SLG - Free Report) announced the signing of Manhattan office leases totaling 2.3 million square feet so far in 2025, with an additional 1.2 million square feet currently in the pipeline. This strong leasing activity positions the company to achieve its 2025 Manhattan same-store office occupancy target of 93.2%.

To date, in the fourth quarter of 2025, several major lease deals have been completed. A financial services company expanded its lease by adding 92,663 square feet, taking over the entire 5th floor at One Madison Avenue. This brings its total space in the building to 159,871 square feet. In another deal, Wells Fargo Bank renewed and expanded its lease for nine years, covering 49,865 square feet across floors 27 to 29 at 280 Park Avenue.

Moroccanoil signed a new 10-year lease covering 39,799 square feet, taking the entire 33rd floor and part of the 32nd floor at 1185 Avenue of the Americas. Houlihan Lokey expanded its space with a 9.5-year lease for 37,224 square feet on the entire 22nd floor at 245 Park Avenue, bringing its total area in the building to 221,656 square feet. Meanwhile, Hinshaw & Culbertson renewed its lease for another 10 years, covering 26,977 square feet across the full 13th floor and part of the 12th floor at 800 Third Avenue.

Series of Transactions at 800 Third Avenue

SL Green announced that it has completed the acquisition of its joint venture partners’ combined 39.48% interest in 800 Third Avenue for total cash consideration of $5.1 million. SL Green now holds 100% ownership in the asset. The company also modified and extended the property’s existing $177 million mortgage.

These modifications have extended the maturity date from February 2026 to February 2031, inclusive of all available extension options. The interest rate was maintained at 1.70% over Term SOFR, which SL Green has fixed at 5.03% from February 2026 through February 2029, covering the initial maturity period.

Located between 49th and 50th Streets in Midtown Manhattan, 800 Third Avenue is a 41-story glass and steel office tower offering expansive views of Manhattan and the Hudson River. The building enjoys convenient access to Grand Central Terminal and multiple subway lines.

Per Harrison Sitomer, chief investment officer of SL Green, “We continue to see strong momentum on Third Avenue, with residential conversions helping reposition the corridor for strong office sector growth.”

SLG: In a Snapshot

With encouraging leases executed over the quarters, the company remains well-positioned to navigate the challenging environment. Its long-term leases with a diverse tenant base, with a strong credit profile, assure stable rental revenues.

The series of transactions shows the company’s long-term outlook on well-located Midtown Manhattan properties and highlights its success in extending loan maturities on favorable terms.

In the past month, shares of this Zacks Rank #4 (Sell) company have lost 15.5% against the industry's growth of 0.3%.

 

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Cousins Properties (CUZ - Free Report) and Digital Realty Trust (DLR - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CUZ’s 2025 FFO per share has moved a cent northward to $2.84 over the past month.

The Zacks Consensus Estimate for DLR’s 2025 FFO per share has moved 15 cents upward to $7.35 over the past two months.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.


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