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Vornado's PENN 2 Reaches 90% Leasing Milestone With Two Major Tenants
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Key Takeaways
VNO's PENN 2 reached 90% leased after signing full-floor leases with Veeva and Altana.
Veeva leased the entire 11th floor, spanning 62,223 sq. ft., under a 12-year agreement.
Altana leased the full 21st floor for 62,309 sq. ft. and will establish its new headquarters.
Vornado Realty Trust (VNO - Free Report) announced that PENN 2 is now 90% leased following the execution of two full-floor leases with Veeva and Altana AI. The leasing activity marks another milestone in the repositioning of PENN 2, which has transformed into a reimagined 31-story office tower in the heart of THE PENN DISTRICT campus.
Veeva signed a 12-year lease for 62,223 square feet across PENN 2’s entire 11th floor. As a leading provider of cloud software, AI, data and consulting services for the global life science industry, Veeva’s commitment highlights the PENN 2’s appeal to high-quality, technology and innovation-focused tenants.
Altana will establish its new headquarters on the entire 21st floor under a 10-year lease covering 62,309 square feet. The company operates an AI-powered trusted trade network that connects global logistics providers, businesses and their suppliers with government agencies.
Vornado transformed PENN 2 through a comprehensive redevelopment that introduced a modern curtain wall, a triple-height lobby and 16 distinctive double-height outdoor tenant loggias. The building features 72,000 sq. ft. of outdoor green space, including The Perch, a rooftop glass pavilion that opens onto a 17,000 sq. ft. private landscaped space for tenants, and a 280-seat Town Hall suspended above a pedestrian plaza on 33rd Street. The building also includes 30,000 sq. ft. of curated retail, highlighted by The Dynamo Room, a 7,100 sq. ft. full-service restaurant and bar by Sunday Hospitality.
Together with its neighboring PENN 1, the towers form a two-building campus in the heart of THE PENN DISTRICT. The campus is located directly above Penn Station, North America’s most accessible and active mass transit hub. The twin projects encompass 4.4 million square feet of premium office space, new and improved entrances to Penn Station and the surrounding subway system, and acres of public plazas, landscaping and granite stone-paved sidewalks. Tenants across the PENN DISTRICT also benefit from 180,000 square feet of Vornado’s WorkLife program, one of the city’s most comprehensive workplace amenity offerings.
Conclusion
The new leases with Veeva and Altana underscore Vornado's strategy of attracting high-quality tenants and improving occupancy at its flagship PENN DISTRICT assets. PENN 2’s reaching 90% leased occupancy reflects continued demand for well-located, amenity-rich office space following the property's extensive redevelopment.
In the past three months, shares of this Zacks Rank #2 (Buy) company have gained 45.8% compared with the industry's 3.7% growth.
View the Zacks #1 Rank List
Image: Bigstock
Vornado's PENN 2 Reaches 90% Leasing Milestone With Two Major Tenants
Key Takeaways
Vornado Realty Trust (VNO - Free Report) announced that PENN 2 is now 90% leased following the execution of two full-floor leases with Veeva and Altana AI. The leasing activity marks another milestone in the repositioning of PENN 2, which has transformed into a reimagined 31-story office tower in the heart of THE PENN DISTRICT campus.
Veeva signed a 12-year lease for 62,223 square feet across PENN 2’s entire 11th floor. As a leading provider of cloud software, AI, data and consulting services for the global life science industry, Veeva’s commitment highlights the PENN 2’s appeal to high-quality, technology and innovation-focused tenants.
Altana will establish its new headquarters on the entire 21st floor under a 10-year lease covering 62,309 square feet. The company operates an AI-powered trusted trade network that connects global logistics providers, businesses and their suppliers with government agencies.
Vornado transformed PENN 2 through a comprehensive redevelopment that introduced a modern curtain wall, a triple-height lobby and 16 distinctive double-height outdoor tenant loggias. The building features 72,000 sq. ft. of outdoor green space, including The Perch, a rooftop glass pavilion that opens onto a 17,000 sq. ft. private landscaped space for tenants, and a 280-seat Town Hall suspended above a pedestrian plaza on 33rd Street. The building also includes 30,000 sq. ft. of curated retail, highlighted by The Dynamo Room, a 7,100 sq. ft. full-service restaurant and bar by Sunday Hospitality.
Together with its neighboring PENN 1, the towers form a two-building campus in the heart of THE PENN DISTRICT. The campus is located directly above Penn Station, North America’s most accessible and active mass transit hub. The twin projects encompass 4.4 million square feet of premium office space, new and improved entrances to Penn Station and the surrounding subway system, and acres of public plazas, landscaping and granite stone-paved sidewalks. Tenants across the PENN DISTRICT also benefit from 180,000 square feet of Vornado’s WorkLife program, one of the city’s most comprehensive workplace amenity offerings.
Conclusion
The new leases with Veeva and Altana underscore Vornado's strategy of attracting high-quality tenants and improving occupancy at its flagship PENN DISTRICT assets. PENN 2’s reaching 90% leased occupancy reflects continued demand for well-located, amenity-rich office space following the property's extensive redevelopment.
In the past three months, shares of this Zacks Rank #2 (Buy) company have gained 45.8% compared with the industry's 3.7% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the broader REIT sector are Cousins Properties (CUZ - Free Report) and American Tower (AMT - Free Report) , each carrying a Zacks Rank of #2 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 2026 FFO per share is pegged at $2.93, which indicates year-over-year growth of 3.17%.
The Zacks Consensus Estimate for AMT’s full-year FFO per share is pinned at $10.95, which suggests an increase of 1.77% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.