SL Green Realty Corp. signed 2.3 million square feet of new Manhattan office leases in 2025, bringing its total signed volume for the year to 2.3 million square feet. The company’s portfolio now totals 30.7 million square feet across 53 buildings, a 1.5 % increase from the 30.4 million square feet reported at the end of 2024.
The leasing activity lifts SL Green’s same‑store occupancy to 93.2 %, the target it set for 2025. The company’s pipeline remains at roughly 1.2 million square feet, indicating a steady flow of new tenants and a robust demand environment in prime Manhattan submarkets. The average lease term for the new contracts is 8.9 years, and the average rent is $88.91 per rentable square foot, a 19 % increase from the $74.38 per square foot average in Q4 2024. These terms reflect the market’s tightening supply and the company’s focus on high‑quality tenants.
In Q3 2025, SL Green’s mark‑to‑market for signed Manhattan leases was 2.7 % lower than previous rents, a modest concession that still preserves a strong revenue outlook. The company’s Q3 2025 FFO was $1.58 per share, up from $1.13 per share in Q3 2024, driven by higher rents and a favorable lease mix. Revenue for the quarter was $149.67 million, slightly below the $160.87 million consensus estimate, reflecting a 6 % decline in revenue from the prior year but offset by a 4 % increase in operating income.
Management highlighted the leasing momentum as evidence of a resilient market. CEO Marc Holliday said, “When we get close to that 93 % occupancy range, we can begin to push rents, rein in concessions, and see building values increase at above‑average rates.” The company’s guidance for 2026 FFO per share—$4.40 to $4.70—fell short of the consensus estimate of $5.13, prompting a muted market reaction. Investors expressed concern that the guidance signals a more cautious outlook for the next fiscal year, despite the strong leasing activity.
The leasing volume also positions SL Green to capitalize on the broader recovery in Manhattan’s office market, where year‑to‑date leasing in 2025 reached nearly 23 million square feet, up 37.6 % from the same period in 2024. The company’s focus on Class A properties in high‑demand neighborhoods continues to support its competitive moat and long‑term value creation.
Overall, the 2.3 million square‑foot signing demonstrates SL Green’s ability to secure high‑quality tenants in a tightening market, while the company’s guidance signals a cautious but stable outlook for 2026.
revised_sentiment_rating
importance
low
medium
high
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.