{"id":599506,"date":"2026-02-18T21:19:14","date_gmt":"2026-02-18T21:19:14","guid":{"rendered":"https:\/\/www.europesays.com\/us\/599506\/"},"modified":"2026-02-18T21:19:14","modified_gmt":"2026-02-18T21:19:14","slug":"esrt-transitions-to-100-nyc-portfolio-after-strong-deal-making-in-2025-commercial-observer","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/599506\/","title":{"rendered":"ESRT Transitions to 100% NYC Portfolio After Strong Deal-Making in 2025 \u2013 Commercial Observer"},"content":{"rendered":"

Empire State Realty Trust<\/a><\/b> (ESRT)\u2019s real estate portfolio is now entirely located in New York City following the sale of its final suburban asset in Stamford, Conn.<\/a>, the real estate investment trust announced during a Wednesday afternoon earnings call.<\/p>\n

ESRT \u2014 which at the end of 2025 had a portfolio comprising 7.6 million square feet of office space, 800,000 square feet of retail space and 743 residential units \u2014 focused its attention on \u201chigh-quality real estate\u201d acquisitions last year, according to the company\u2019s leaders. The REIT completed $417 million in all-cash acquisitions, including multifamily properties in Manhattan, $31 million worth of \u201cprime retail\u201d on North Sixth Street<\/a> in Williamsburg, Brooklyn, and the Scholastic<\/b> headquarters at 555-557 Broadway<\/b><\/a> in SoHo, which it bought in December for $386 million.<\/p>\n

SEE ALSO: LinkedIn Takes 15K SF of Retail Space at Empire State Building<\/a><\/p>\n

\u201cThe cumulative impact of all the transaction activity in the past five years is a successful transition to a 100 percent New York City portfolio that drives resilient cash flow through high-quality assets that benefit from live, work, play and visit,\u201d Christina Chiu<\/b>, president of ESRT, said during the Wednesday earnings call. \u201cTransaction activity has increased, and there is strong institutional capital interest in New York City and recognition of the strength of its underlying property fundamentals.\u201d<\/p>\n

Not only did ESRT have a successful year on the acquisition front, but it also reported strong leasing momentum. The REIT signed 458,473 square feet of leases during the fourth quarter of 2025 and 1 million square feet of leases in 2025 overall. ESRT\u2019s overall portfolio occupancy was 90.3 percent, and its office portfolio is currently 93.5 percent leased, according to the report.<\/p>\n

ESRT completed several major leases during the fourth quarter, including T.J. Maxx<\/a><\/b>\u2019s 46,437-square-foot renewal<\/a> for its store at 250 West 57th Street<\/b>, Nespresso<\/a><\/b>\u2019s 41,835-square-foot office renewal at 111 West 33rd Street<\/b>, Burlington Stores<\/a><\/b>\u2019 expansion to 206,392 square feet<\/a> at 1400 Broadway<\/b>, and J.P. Morgan Chase Bank<\/a><\/b>\u2019s 21,683-square-foot renewal<\/a> at One Grand Central Place<\/b>. There was also a 15,000-square-foot retail lease for LinkedIn<\/a><\/b> at the Empire State Building<\/b>.<\/p>\n

\u201cThe market tenor remains strong,\u201d Ryan Kass<\/b>, senior vice president and director of leasing and marketing at ESRT, said on the call. \u201cWe continue to see a bifurcating market as \u2018have\u2019 and \u2018have-nots\u2019 and we\u2019re a clear \u2018have.\u2019 We have just over 170,000 square feet of leases in the pipeline that we anticipate closing in the first and second quarter.\u201d<\/p>\n

As for ESRT\u2019s fourth-quarter earnings overall, the REIT recorded funds from operations (FFO) of 23 cents per share during the three-month period and 87 cents per share for all of 2025, compared to 24 cents per share and 95 cents per share for the same respective periods in 2024, the report shows.<\/p>\n

ESRT reported total revenues of $199.2 million during the fourth quarter, compared to $197.6 million during the same period in 2024. The REIT also recorded a net income of $19.7 million for the quarter, an increase from $11.2 million during the fourth quarter of 2024.<\/p>\n

However, ESRT\u2019s net operating income (NOI) from the observatory at the Empire State Building declined slightly from $26.5 million in the third quarter of 2025<\/a> to $24.4 million, according to the report. The observatory\u2019s NOI for the entire year was $90.1 million.<\/p>\n

The number of visitors to the observatory also dropped slightly during the quarter, largely due to a decline in visitation from cross-ocean international tourist visitors, ESRT CEO Anthony Malkin<\/b> said Wednesday.<\/p>\n

\u201cWe continue to grow our domestic demand and be ready for the return of our traditional budget-conscious international visitors,\u201d Malkin said.<\/p>\n

Isabelle Durso can be reached at idurso@commercialobserver.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Empire State Realty Trust (ESRT)\u2019s real estate portfolio is now entirely located in New York City following the…\n","protected":false},"author":3,"featured_media":599507,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[5122],"tags":[5229,2174,4282,258354,258353,405,403,5226,5225,5228,5227,170798,67,586,132,5230,68,2969],"class_list":["post-599506","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-america","tag-capital-markets","tag-channel","tag-christina-chiu","tag-earnings-anthony-malkin","tag-new-york","tag-new-york-city","tag-newyork","tag-newyorkcity","tag-ny","tag-nyc","tag-ryan-kass","tag-united-states","tag-united-states-of-america","tag-unitedstates","tag-unitedstatesofamerica","tag-us","tag-usa"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116093725104356625","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/599506","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=599506"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/599506\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/599507"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=599506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=599506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=599506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}