Leasing Uptick Can’t Save Paramount From Q1 Net Loss

Paramount Group reported a slight net loss for the first quarter of 2025 compared to the same period last year, even though office leasing in its portfolio found its footing.

The real estate investment trust saw 283,874 square feet leased in the first quarter of the year, a slight improvement from the 276,717 square feet seen in the first quarter of 2024. However, the average weighted asking rent for the quarter was $76.52 per square foot, a decline from the $86.65 per square foot it ended 2024 with.

Ultimately, Paramount reported a 5.4 percent decrease in same-store net operating income, from $92.4 million in the first quarter of 2024 to $87.3 million in 2025, while revenue was down from $188 million to $187 million in that same period.

Nevertheless, CEO and President Albert Behler called it the company’s strongest quarter since 2019.

“It is important to recognize the recent shifts in the broader economic environment as we discuss our performance,” Behler said in opening remarks. “Despite these shifts, we have not experienced any disruptions to our leasing activity over the past month.” 

April saw Paramount sign deals with Chicago-based law firm Kirkland & Ellis, which leased 131,000 square feet at 900 Third Avenue, and Benesch Friedlander Coplan & Aronoff, which agreed to a 90,000-square-foot deal at 1301 Avenue of the Americas.

Paramount also said on the call that it sold 45 percent equity interest in 900 Third Avenue for about $210 million, but it’s unclear who bought that equity stake.

Paramount has $7.9 billion in assets as of March 31, compared to $7.8 billion at the end of 2024.

Mark Hallum can be reached at mhallum@commercialobserver.com.