Paramount Group's earnings call revealed big new lease, and another followed

Core Viewpoint - Paramount Group reported significant leasing activity in its second-quarter earnings call, highlighting a major unreported lease and the overall strength of its New York portfolio, despite some omissions regarding vacant properties [1][4]. Leasing Activity - Paramount leased 690,000 square feet of offices in New York and San Francisco year-to-date, with 52% of these leases occurring in Manhattan [3]. - The starting rents for the leases signed by Piper Sandler and Adler & Stachenfeld were above $90 per square foot [3]. Portfolio Performance - The New York portfolio is currently 88.1% leased, the highest level since early 2022, indicating a strong demand for quality office space in the city [4][7]. - The reported leasing figures do not account for the vacant 60 Wall St., which has 1.6 million empty square feet, potentially skewing the perceived strength of the portfolio [4][7]. Debt and Refinancing - The largest upcoming maturity for Paramount is an $860 million loan on 1301 Sixth Ave., which is backed by high-performing assets that are over 97% leased [8]. - The company is on track to refinance this asset and plans to provide more details in the next earnings call [8]. Future Outlook - Showtime Networks is set to move out from 260,000 square feet at 1633 Broadway next year, but the building has been solidly leased for over 10 years, with active showings currently taking place [8]. - Asking rents at 1633 Broadway range from $70 to $90 per square foot, with positive activity noted in the leasing market [9].