SL Green Realty CEO Marc Holliday: New York leasing growth is the strongest I've seen in my career

Core Insights - The commercial real estate market in New York is showing mixed signals, with prime office buildings like SL Green's One Madison Avenue achieving full occupancy, while older office towers are still valued below pre-pandemic levels [1][2] - There has been strong leasing demand across various sectors, including law firms and financial tech, with expectations that two-thirds of SL Green's portfolio will be 98% leased by the end of the year [2][3] - The resurgence in leasing activity is primarily driven by new and well-located buildings, with vacancy rates in Midtown Manhattan reported at 7% and below [4][5] Leasing Demand - The demand for office space in New York is robust, with significant leasing activity noted, including 9 million square feet leased over the past three years [9] - Law firms, previously thought to be at risk due to AI, are expanding their office spaces, indicating a strong demand for quality office locations [6][8] Market Dynamics - The current market favors attractive, newly constructed or redeveloped office spaces, emphasizing the importance of location and asset quality [4][5] - The demand for office space is being driven by companies seeking to establish a presence in New York due to its educated and diverse workforce [3][6] Economic Considerations - The mayor's administration is focused on addressing the city's affordability crisis, with discussions around maintaining tax levels while enhancing revenue through growth and efficiency [10][12] - The budget for the city is projected to be balanced without new income taxes, which is seen as crucial given the high cost of living in New York [12][13]