SL Green (SLG) Secures 91% at One Vanderbilt, Stock Rallies
SL Green Realty Corp. SLG has inked a 15-year lease with UiPath PATH for 26,363 square feet of space, covering the entire sixth floor at One Vanderbilt Avenue. With this lease, the skyline-defining tower in the center of East Midtown is now more than 91% leased.
Reflecting positive sentiments, shares of SL Green have gained 2.89% during Friday’s trading session.
Located in Midtown Manhattan, one of the growing hubs of New York, the property is well poised to attract a lot of tenants. The 1.7-million-square-foot skyscraper offers an unparalleled combination of amenities, innovative office design, state-of-the-art technology, best-in-class sustainability and a healthy work environment, together with a direct connection to Grand Central Terminal. This has likely enabled the company to enjoy exponential tenant demand and stellar leasing velocity at the property.
Previously in June, SL Green announced the signing of three leases, aggregating 124,000 square feet of space, at One Vanderbilt Avenue. It comprised both new and expansion leases. Following those leases, the property was 89% leased.
With numerous corporate leaders encouraging employees to return to offices, the outlook for urban office properties is improving. There has been acceleration in leasing activity in recent months.
Amid this, SL Green, with its premium properties, is on track to meet or exceed the company’s leasing goal of 1.3 million square feet for 2021.
However, the rising supply of office properties and intense competition from developers and owners are challenging for the company. Also, softness in the retail real estate sector is a concern for SL Green.
Shares of this Zacks Rank #3 (Hold) company have gained 1.2% in the past six months, underperforming the industry's growth of 6.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Key Picks
The Zacks Consensus Estimate for Duke Realty Corporation’s DRE ongoing-year FFO per share has been revised marginally upward over the past month. The company carries a Zacks Rank of 2 (Buy), currently.
The Zacks Consensus Estimate for CubeSmart’s CUBE 2021 FFO per share has moved 7.4% upward over the past two months. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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