SL Green Inks 123,000 Square Foot Lease With the Travelers Insurance Company at 485 Lexington Avenue

Rhea-AI Summary

SL Green Realty Corp (NYSE: SLG), Manhattan's largest office landlord, has secured a significant lease renewal with The Travelers Insurance Company at 485 Lexington Avenue. The renewal encompasses 122,788 square feet, covering a portion of the seventh floor and the entirety of the eighth and ninth floors, extending for an additional 10 years.

This transaction brings SL Green's total office leases signed year to date to 3,518,829 square feet, with an additional pipeline exceeding 900,000 square feet. The company reports that Midtown leasing momentum continues to outperform both 5-year and 10-year averages.

Positive

• Secured major 122,788 sq ft lease renewal with Travelers Insurance for 10 years
• Achieved 3.5M square feet in total leases signed year to date
• Maintains strong pipeline of over 900,000 square feet
• Midtown leasing performance exceeding both 5-year and 10-year averages

Negative

• None.

Insights

Real Estate Analyst

The renewal of 122,788 square feet by Travelers Insurance represents a significant win for SL Green, particularly in the challenging NYC office market. The 10-year commitment demonstrates strong tenant confidence and provides valuable income stability. SL Green's impressive 3.5M square feet of leases signed year-to-date, coupled with a robust pipeline of 900,000 square feet, indicates strong leasing momentum and market recovery in Midtown Manhattan. The outperformance versus both 5-year and 10-year averages suggests improving market fundamentals. This lease renewal helps maintain occupancy at 485 Lexington Avenue and strengthens SL Green's position as Manhattan's largest office landlord. The transaction reinforces the continued demand for quality office space in prime Midtown locations, despite broader market concerns about office utilization.

Market Research Analyst

This lease renewal is particularly noteworthy as it occurs during a period of uncertainty in the office market sector. The commitment from a major insurance company like Travelers sends a positive signal about the resilience of Manhattan's office market. The 3.5M square feet of leases signed year-to-date by SL Green significantly outpacing historical averages indicates a potential market recovery trend. The additional 900,000 square feet in the pipeline suggests continued strong demand. For context, this level of leasing activity is remarkable given the ongoing debates about remote work and office space utilization. The long-term nature of the renewal (10 years) also suggests that major corporations are maintaining their commitment to physical office spaces in prime locations.

3.5M Square Feet Signed Year to Date

NEW YORK, Dec. 09, 2024 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office landlord, today announced that The Travelers Insurance Company has executed a 122,788 square foot renewal at 485 Lexington Avenue. The company will remain on a portion of the seventh floor and all of the eighth and ninth floors for an additional 10 years. This transaction increases SL Green’s office leases signed year to date to 3,518,829 square feet while maintaining a pipeline of more than 900,000 square feet.

“We are proud to extend our valued relationship with The Travelers Insurance Company,” said Steven Durels, Executive Vice President and Director of Leasing and Real Property at SL Green. “Midtown leasing momentum continues to be broad based as it outperforms both the 5-year and 10-year averages.”

The Travelers Insurance Company was represented by Robert Ageloff, Matt Astrachan and Kate Roush of Jones Lang LaSalle, and the landlord was represented by Paul Glickman, Alex Chudnoff, Diana Biasotti, Christine Colley, Kristen Morgan of Jones Lang LaSalle.

About SL Green Realty Corp.
SL Green Realty Corp., Manhattan's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing the value of Manhattan commercial properties. As of September 30, 2024, SL Green held interests in 55 buildings totaling 31.8 million square feet. This included ownership interests in 28.1 million square feet of Manhattan buildings and 2.8 million square feet securing debt and preferred equity investments.

Forward Looking Statement
This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, occupancy, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," or the negative of these words, or other similar words or terms.

Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements include risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

PRESS CONTACT
slgreen@berlinrosen.com

SLG-LEAS

FAQ

How many square feet did Travelers Insurance renew at SL Green's 485 Lexington Avenue?

Travelers Insurance renewed 122,788 square feet at 485 Lexington Avenue, covering a portion of the seventh floor and all of the eighth and ninth floors.

What is SL Green's (SLG) total leased square footage year to date in 2024?

SL Green has signed office leases totaling 3,518,829 square feet year to date in 2024.

How long is the new lease term for Travelers Insurance at SL Green's building?

The lease renewal with Travelers Insurance is for an additional 10 years.

What is SL Green's (SLG) current leasing pipeline size?

SL Green maintains a leasing pipeline of more than 900,000 square feet.