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<\/p>\nWhile many Manhattan office owners had a bumper third quarter, Empire State Realty Trust had its slowest leasing period in\u00a0three years.<\/p>\n
<\/p>\n
\n Empire State Realty Trust’s namesake property, the Empire State Building, part of the REIT’s 7.8M Manhattan office portfolio.\n <\/p>\n
ESRT<\/a>, which owns the Empire State Building as part of a\u00a07.8M SF office portfolio, signed tenants to 72K SF of Manhattan office\u00a0space in the third quarter, according to its\u00a0earnings report, released Wednesday<\/a>.<\/p>\n It is the first time since the fourth quarter of 2022 that ESRT’s office leasing activity was below 100K SF, according to a\u00a0Bisnow analysis of the REIT’s quarterly filings.\u00a0<\/p>\n The REIT\u2019s stock price dropped by nearly 6% on Thursday. It has now lost more than 29% of its value this year.\u00a0<\/p>\n Across Manhattan, tenants\u00a0signed\u00a0nearly 8.4M SF of leases during the period, more than 50% higher than the five-year quarterly average, according to CBRE<\/a>. This year is on pace to be the city’s strongest for office leasing since before the pandemic.<\/p>\n ESRT’s\u00a0Q3\u00a0numbers\u00a0also stand in direct contrast to\u00a0its recent\u00a0performance. It signed a combined 443K SF of Manhattan office leases in the first half of the year and 289K SF in last year’s third quarter,\u00a0its filings\u00a0with the Securities and Exchange Commission show.\u00a0<\/p>\n ESRT\u00a0Chairman and CEO Anthony Malkin\u00a0said on the company’s earnings call Thursday that\u00a0it has signed an additional 50K SF of leases in October and has another 150K SF in the pipeline.<\/p>\n \u201cOur highly leased portfolio has benefited from strong lease-up executed over the last several years, and 3Q was a slightly lighter quarter for office leasing,\u201d Malkin said.<\/p>\n The REIT’s focus is leasing up the 500K SF of available Manhattan office space, Malkin said, with some being held off-market to lease as contiguous blocks.<\/p>\n \u201cWe remain focused on our ability to drive occupancy and maximize lease economics,\u201d he said, adding that the firm has also been pushing to increase rents, reduce concessions and sign extensions with current tenants.<\/p>\n Its\u00a0Manhattan office\u00a0occupancy rose in the third quarter to 90.3% from 89.5% in Q2 as companies that previously signed leases occupied their space. But its leased percentage, which takes into account more recent deals where move-ins haven’t occurred, dropped from 94.1% in Q3 2024 to 93.1%.<\/p>\n The company affirmed its guidance on its earnings, funds from operations and occupancy for the year and reported increases in rents it is able to derive from its portfolio, which is largely made up of older properties.<\/p>\n The average rent per square foot in its Manhattan offices in the third quarter was $69.97, compared to the market average of $72.57, according to CBRE.<\/p>\n The REIT also\u00a0owns 800K SF of retail space, which\u00a0was 94.7% occupied before ESRT announced a deal with Rolex at one of its recently acquired Williamsburg storefronts.<\/p>\n The quarter’s results come a little over a month after the REIT announced<\/a>\u00a0that longtime executive Thomas Durels<\/a> would be stepping away from\u00a0his role, transitioning leadership to Chief Revenue Officer Ryan Kass<\/a> and newly hired Chief Operating Officer Jackie Renton. Durels\u00a0plans to remain involved with ESRT until June 2027.<\/p>\n","protected":false},"excerpt":{"rendered":"While many Manhattan office owners had a bumper third quarter, Empire State Realty Trust had its slowest leasing…\n","protected":false},"author":3,"featured_media":348218,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5122],"tags":[5229,170038,170799,170801,405,403,5226,5225,5228,5227,47039,111762,40813,170798,72652,170800,67,586,132,5230,68,2969],"class_list":{"0":"post-348217","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york","8":"tag-america","9":"tag-empire-state-realty-trust","10":"tag-esrt","11":"tag-jackie-renton","12":"tag-new-york","13":"tag-new-york-city","14":"tag-newyork","15":"tag-newyorkcity","16":"tag-ny","17":"tag-nyc","18":"tag-nyc-office","19":"tag-nyc-office-leasing","20":"tag-nyc-retail","21":"tag-ryan-kass","22":"tag-securities-and-exchange-commission","23":"tag-thomas-durels","24":"tag-united-states","25":"tag-united-states-of-america","26":"tag-unitedstates","27":"tag-unitedstatesofamerica","28":"tag-us","29":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115475071095316113","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/348217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=348217"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/348217\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/348218"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=348217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=348217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=348217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}