SL Green Reports Increased Leasing and Profits in Q3 2025
By Mark Hallum October 16, 2025 3:09 pm
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SL Green Realty reported strong earnings and increased leasing volume in the third quarter of 2025 compared to the previous quarter.
The company, Manhattan’s largest office landlord, reported in a Thursday earnings call that it signed 52 leases totaling 657,942 square feet this past quarter compared to 541,721 square feet in the second quarter. Meanwhile, same-store cash net operating income increased from $155.9 million in the second quarter to $164.4 million in the quarter ending Sept. 30.
The earnings announcement came one day after the company revealed that it had entered into a contract to buy the Park Avenue Tower at 65 East 55th Street from Blackstone for $730 million, with the deal expected to close in the first quarter of 2026.
In September, the real estate investment trust also entered an agreement to purchase 346 Madison Avenue and 11 East 44th Street for $160 million from former Brooks Brothers owner Claudio Del Vecchio, with that deal expected to close before the end of the year.
“Over the past five years, we saw the heightened demand for well-located Park Avenue and Grand Central assets long before the competition, and now it’s truly paying off,” SL Green CEO Marc Holliday said during the earnings call. “Earlier in the quarter, we delivered on our goal of identifying a major new development site, acquiring 346 Madison Avenue and 11 East 44th across the street from One Vanderbilt. This is the perfect place to build the next great building.”
The company also announced it had gained $86.6 million from the sale of its 5 percent interest in One Vanderbilt to the Japanese firm Mori Building Company.
On the leasing front, SL Green locked in several large tenants in Manhattan with the announcement that the New York State Office of General Services had signed a deal to expand to 117,390 square feet at 919 Third Avenue, while Harvey AI Corporation took 92,663 square feet and Sigma Computing took 64,077 square feet at One Madison Avenue.
But despite several significant achievements, the third quarter was not all that SL Green had hoped for.
In mid-September, the REIT and its partners, Caesars Entertainment and Roc Nation, lost their bid for a $5.5 billion casino in Times Square, when a key committee voted against advancing their application to the next phase of approval with the New York State Gaming Commission.
The joint venture had put $500 million down on the application fee, an expense that may not have been reflected in the third-quarter results considering that the process has been ongoing for a few years now.
“There should be at least one casino in Manhattan, I think that’s obvious, and Times Square was the exact right location, but the process was designed to make that impossible, at least for the time being,” Holliday said.
But potential for the site is anything but dead, with Holliday not ruling out the possibility of a casino in the future.
“The positive outcome is that we know we have an extremely valuable asset of 1515 Broadway,” Holliday said. “Whether its future is as office or as an entertainment and hospitality use, we have plenty of time to sort that out since the building is fully leased until 2031.”
Mark Hallum can be reached at mhallum@commercialobserver.com.
