SL Green Sees Solid Leasing Velocity In First 2 Months Of 2020
Zacks Investment Research | Mar 02, 2020 08:00PM ET
SL Green Realty Corp. (NYSE:SLG) is witnessing solid leasing velocity across its markets. The company made an encouraging start to 2020 by signing 239,771 square feet of office leases during the first two months of the year, at a mark-to-market of 12.2% over the prior fully escalated rents on the same spaces.
Management noted that there is continued tenant demand in the TAMI, legal and financial services sectors. This is driving solid leasing velocity across all market segments and price points.
Among the significant leases signed in the initial months of the current year, one includes a renewal and expansion with Hudson Yards Construction LLC for 75,704-square-foot lease at 410 Tenth Avenue, for 25 years. The other one is a new lease with Memorial Hospital for Cancer and Allied Diseases, for the full second floor at 485 Lexington Avenue spanning 54,199 square feet, for 10 years. Furthermore, a new lease has been signed with an internationally-renowned fashion brand — KCP Holdco, Inc. — for 37,169 square feet of space at 707 Eleventh Avenue, for 10 years.
In a separate press release, the company also announced the acquisition of 126-132 Nassau Street and plans to build new 215,000-square-foot building for long-term tenant on the site by demolishing the existing 98,412-square-foot office building.
This marks the company’s fourth ground-up construction project in Lower Manhattan, aimed at capitalizing on the region’s solid growth potential. In fact, serving as a center of commercial, residential and retail activity, Lower Manhattan has emerged as a preferred global destination.
Notably, SL Green owns premium office properties in Manhattan and enjoys a solid balance sheet. The company is well poised to benefit from the resilient economy and stable job-market environment that has been spurring demand for office spaces, given its large footprint in New York Metropolitan area. However, rising supply of office properties and a competitive landscape might curb its pricing power.
Shares of this Zacks Rank #3 (Hold) company have gained 0.7% in the past six months, as against the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.