SL Green Reports Improved Leasing Metrics in Q2 2026

SL Green is reaping the rewards of a resurgent New York City office market. 

“It might be the dead of summer, but our team is, of course, hard at work — this is truly when we shine the brightest, are completely dialed in on our business plan, and outwork the marketing,” said CEO Marc Holliday, Thursday afternoon during SL Green’s second-quarter earnings call. 

Holliday had earlier predicted the firm’s occupancy would rise — and SL Green saw its occupancy rate rise to 94.7 percent for its New York office portfolio, up from 94.4 percent .

“Much of what we predicted at our investor conference in December has now played out in ways that improve cash flow,” he said, before listing off the latest shareholder metrics. 

The firm reported that its funds from operations (FFO) reached $109.6 million, or $1.43 per share, in the second quarter of 2026, compared to the $124.5 million, or $1.63 per share, recorded in the same period last year. The firm’s total revenue increased from $241 million in the second quarter of 2025 to $264 million in the second quarter of 2026, an increase of 9 percent, SL Green reported.  

The firm reported a net loss of $26.5 million, or 38 cents per share, in the second quarter of 2026, compared to the net loss of $11.1 million, or 16 cents per share, one year ago.

The New York-based real estate investment trust (REIT) signed 53 Manhattan office leases in the second quarter of 2026 that totaled 445,161 square feet, with an average rent of $93.17 per square foot and average lease term of 5.8 years, bringing its leasing activity through the first six months of 2026 to 1,374,425 square feet leased in 104 Manhattan office transactions. 

“A growing scarcity of premier space in desirable Midtown districts has turned the tables in our favor,” said Holliday, who added the firm expects to exceed its internal leasing goals by the end of the year. “The trend continues to move in the right direction.”

The flagship deals SL Green inked in the second quarter include the recent announcement that a top — as yet unnamed — AI firm has signed 98,420-square-foot, 10-year lease to take the entire 11th floor at 11 Madison Avenue; insurance giant Fidelity National Title Insurance signed a new lease for 19,966 square feet for 10 years at 711 Third Avenue in July; 1185 Avenue of the Americas filled with 57,000 square feet of new leases in July; and 500 Park Avenue secured leases for 19,000 square feet.  

The firm’s leasing pipeline now stands at 900,000 square feet, split roughly evenly between new leases and renewals, according to Steven Durels, executive vice president and director of leasing and real property at SL Green. 

Durels added that 400,000 square feet of that current leasing volume is in active negotiation, “potentially, very far advanced negotiations” with term sheets that are expected to be signed. 

Holliday and company were busy on the acquisition and dispositions front, as well, in the second quarter. The firm sold 10 East 53rd Street to Meadow Partners for $312.2 million, of which SL Green will collect proceeds of $100 million that will go toward repaying corporate debt. 

SL Green also closed on the $222.6 million sale of residential and retail components at 7 Dey Street, a 34-story, 209-unit, mixed-use office-condo tower. SL Green will retain ownership of the building’s 21,000 square foot office section after netting $23.7 million of cash proceeds. 

The firm’s biggest deal occurred in late May, when SL Green sold a 49 percent stake in 346 Madison Avenue to Japanese developer Mori Building Company, with a gross valuation for the building reaching $175 million. The deal will include the two firms joining forces to develop a new 46-story, 850,000-square-foot office tower near Grant Central Terminal in the future. 

When it comes down to all the activity the firm had in the last three months, Holiday cited both the domestic World Cup tourism jump and “the extraordinary and prolonged use of business activity” in New York City. 

He specifically noted that jobs requiring the use of office space in New York City are growing, and that the health care sector and venture capital sector are both powering office leasing, along with finance firms. 

“Our economy is in a league of its own compared to any other central business district in the country, or even in the world, driven by the financial services sector performing as well as I’ve ever seen it,” said Holiday, who noted Wall Street profits hit $21 billion in the first quarter of 2026. “The city is experiencing one of the largest resurgences I’ve ever seen. … This is what adds up to 50 million square feet of office space leased [by SL Green] in the past four quarters.”  

Brian Pascus can be reached at bpascus@commercialobserver.com.