Paramount Signs 74,000 Square Foot Lease at 1301 Avenue of the Americas

Rhea-AI Summary

Paramount Group, Inc. (PGRE) signed a 74,000 square foot lease with Citizens Bank at 1301 Avenue of the Americas, a Class A office building in Midtown Manhattan. The lease signifies progress in leasing vacant space and adds to Paramount's prestigious tenant roster.

Insights

Real Estate Market Analyst

The recent lease agreement between Paramount Group, Inc. and Citizens Bank is a significant development in the commercial real estate sector. It reflects the ongoing demand for premium office space in strategic locations such as Midtown Manhattan. The lease of a 74,000 square foot space at a Class A office building is indicative of the market's recovery post-pandemic, as businesses continue to seek high-quality premises for their operations.

Considering the size and prestige of the location, this deal could signal a positive trend for the office real estate market, suggesting that despite the rise of remote work, there is still a strong appetite for centrally located, high-end office spaces. This is particularly relevant for financial institutions like Citizens Bank that may prioritize accessibility and prominence in a major financial hub.

The introduction of amenities like the Paramount Club could also set a new standard for office buildings, aiming to attract high-caliber tenants by offering exclusive services. This could potentially lead to a competitive advantage for Paramount Group in attracting and retaining tenants, which in turn may contribute to the stability and growth of their revenue streams.

Financial Analyst

The lease agreement between Paramount Group and Citizens Bank could have favorable financial implications for Paramount. Occupancy rates are a critical metric for real estate investment trusts (REITs) and by securing a long-term tenant for a substantial amount of space, Paramount is likely to see increased stability in its income. This can be particularly attractive to investors looking for consistent returns.

Additionally, the location of the property at 1301 Avenue of the Americas, coupled with the leasing of space to a reputable tenant such as Citizens Bank, may enhance the property's value. This could potentially lead to an appreciation in Paramount Group's stock as the market reacts to the positive leasing activity. Investors will be interested in the terms of the lease, such as the duration and the rate per square foot, as these details will impact the financial forecasting for Paramount Group's earnings.

Moreover, the lease could be used as a benchmark for future deals in the area, potentially raising the average lease rates and influencing the overall valuation of commercial properties in Midtown Manhattan.

NEW YORK--(BUSINESS WIRE)-- Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) announced today that it has signed a 74,000 square foot lease with Citizens at 1301 Avenue of the Americas, a 1.7 million square-foot Class A office building, located between 52^nd and 53^rd Streets in Midtown Manhattan.

With this lease signing, the Company has made further progress leasing vacant space at 1301 Avenue of the Americas.

“We are delighted to welcome Citizens Bank to 1301 Avenue of the Americas as the latest addition to Paramount’s world class tenant roster,” said Peter Brindley, Executive Vice President, Head of Real Estate. “This new lease builds on the momentum of recent leasing activity along Avenue of the Americas, and in our portfolio specifically. Paramount Club, located at 1301 Avenue of the Americas, is a members only club created for corporate employees across our New York portfolio. Paramount Club is scheduled to open May 1, 2024 and continues to be a key differentiator in the market.”

About Paramount Group, Inc.

Headquartered in New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240318755984/en/

Wilbur Paes

Chief Operating Officer,

Chief Financial Officer & Treasurer

212-237-3122

ir@paramount-group.com

Tom Hennessy

Vice President, Business Development &

Investor Relations

212-237-3138

ir@paramount-group.com

Media:

212-492-2285

pr@paramount-group.com

Source: Paramount Group, Inc.

FAQ

What lease agreement did Paramount Group, Inc. (PGRE) announce?

Paramount Group, Inc. (PGRE) announced a 74,000 square foot lease with Citizens Bank at 1301 Avenue of the Americas.

Where is the office building located where the lease was signed?

The office building where the lease was signed is located between 52nd and 53rd Streets in Midtown Manhattan.

When is Paramount Club scheduled to open?

Paramount Club, a members only club at 1301 Avenue of the Americas, is scheduled to open on May 1, 2024.