Core Viewpoint - SL Green Realty's stock has experienced significant declines, dropping over 35% in the past year and nearly 40% over the last five years, primarily due to high interest rates and weak demand for office space since the pandemic [1] Group 1: Interest Rates Impact - Higher interest rates have negatively affected commercial real estate investments, increasing interest expenses and reducing cash flows available for distribution to investors [2] - The Federal Reserve has been lowering the Federal Funds Rate, which has not significantly impacted long-term rates like the 10-year Treasury, remaining high due to inflation and federal deficits [3] - A potential decrease in the 10-year Treasury rate, if inflation falls to the Federal Reserve's target of around 2%, could enhance the value of commercial real estate and SL Green's share price [3] Group 2: Office Market Dynamics - The office market has faced challenges with rising vacancies and stagnant rental rates due to companies' hesitance to commit to long-term office space amid uncertain space needs [4] - Recent data from JLL indicates a resurgence in the office sector, with leasing activity in Q4 reaching a post-pandemic high and annual leasing growing by 5.2% year-over-year [5] - Large-scale transactions in the office market surged by 15%, and office sales volume has increased for seven consecutive quarters, growing by 35% last year, suggesting a potential new growth cycle for the office market [5]