SL Green Signs Retail Leases Totaling More Than 66,000 Square Feet

Rhea-AI Summary

SL Green Realty Corp. (NYSE: SLG), Manhattan's largest office landlord, has announced 66,014 square feet of new retail leases since Q1 2024, achieving full retail occupancy at One Madison Avenue. The development features high-profile tenants including La Tête d'Or by Daniel Boulud, Delicious Hospitality Group, Los Tacos No. 1, Sweetgreen, Alidoro, and Jōji Box. These join the existing anchor tenant, Chelsea Piers, set to open in August 2024.

Additional notable leases include Brasserie Cognac at 461 Fifth Avenue and Chase Bank's renewal at 810 Seventh Avenue. The strong leasing activity reflects the demand for quality retail space in New York City, driven by increased foot traffic and tourism.

Positive

• Achieved full retail occupancy at One Madison Avenue
• Signed 66,014 square feet of new retail leases since Q1 2024
• Attracted high-profile tenants like Daniel Boulud and Delicious Hospitality Group
• Diversified retail mix with restaurants, fast-casual dining, and banking services
• Secured long-term leases, mostly 15 years, indicating tenant confidence

Negative

• None.

Insights

Market Research Analyst

SL Green Realty Corp.'s recent announcement of signing retail leases totaling 66,014 square feet is a significant indicator of the current state of New York City's commercial real estate market. The fact that One Madison Avenue has reached full retail occupancy suggests a strong demand for prime retail space, which is a positive sign for SL Green and the broader market.

It's worth noting that the diverse range of tenants, including high-end restaurants and well-known hospitality brands, will likely attract significant foot traffic. New York City is experiencing an uptick in tourism and the presence of these tenants will enhance the building's appeal. For retail investors, this could signify potential stability and growth in SL Green's revenue streams.

However, it's essential to consider the broader economic context. Rising interest rates and inflation can impact consumer spending and retail performance. While the current leasing success is a positive development, investors should monitor economic trends that may affect the retail sector's resilience.

In summary, the retail leasing achievements at One Madison Avenue and other properties in SL Green's portfolio reflect a promising outlook for the company's retail segment. Yet, prudent investors should remain vigilant about broader economic conditions that could influence future performance.

Financial Analyst

From a financial perspective, SL Green's full retail occupancy at One Madison Avenue is noteworthy. High occupancy rates typically translate into steady and predictable rental income, which is important for real estate investment trusts (REITs) like SL Green. The long-term leases, with some spanning 15 years, provide additional financial security and indicate tenant confidence in the location and the landlord.

Investors should also pay attention to the types of tenants SL Green has attracted. High-profile tenants such as Chef Daniel Boulud and Delicious Hospitality Group are likely to bring stability and prestige to the property. This tenant mix not only enhances the property's value but also strengthens SL Green's position in the competitive New York City real estate market.

Moreover, the diversification of tenant types—from high-end dining to casual eateries—reduces the risk of over-reliance on a single industry. This diversification can be beneficial during economic downturns, as it spreads the risk across various consumer segments.

Overall, the financial implications of these leasing agreements are positive. They suggest a robust and resilient revenue stream for SL Green, backed by long-term commitments from reputable tenants.

Completes Retail Leasing at One Madison Avenue

NEW YORK, July 17, 2024 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office landlord, today announced that it has signed retail leases totaling 66,014 square feet since the end of the first quarter of 2024 and has reached full retail occupancy at One Madison Avenue.

“One Madison Avenue epitomizes what a new office development should be to appeal to a new age workforce. Our goal was to curate an array of high-quality hospitality and lifestyle tenants to provide elevated live-work-play experiences for our tenants and the vibrant Flatiron neighborhood,” said Brett Herschenfeld, Executive Vice President, Retail and Opportunistic Investments at SL Green. “Our strong retail leasing across the portfolio is indicative of the appetite for unique, quality retail throughout New York City, driven by high foot traffic and an increase in New York City tourism.”

The new hospitality-focused retail tenants augment the building’s existing lifestyle flagship retail tenant Chelsea Piers, which will open its second Manhattan location at the tower in August 2024.

One Madison Avenue’s retail leasing achievements includes the following culinary offerings:

• La Tête d’Or by Daniel (11,983 square feet, 15 years): Chef Daniel Boulud will open his first steakhouse experience later this year. With influences drawn from the comfort of the American steakhouse blended with the classic Parisian dining scene, the restaurant will feature a 150-person main dining area, a cocktail bar in a dramatic lounge, private dining room, and an exclusive private omakase steak and seafood table to enjoy a unique dining experience. SL Green represented both the tenant and the landlord.
• Delicious Hospitality Group (13,558 square feet, 15 years): Owners of Pasquale Jones and Charlie Bird will be opening a new seafood-focused restaurant concept. The firm was represented by Ariel Schuster and Michael Cohen of Newmark and the landlord was represented by Ariel Schuster, Ross Berkowitz and Alex Hedaya of Newmark.
• Los Tacos No. 1 (4,032 square feet, 15 years): The bustling taqueria serving authentic Mexican cuisine was represented by Neal Ohm and Michael Cohen of Newmark. The landlord was represented by Ariel Schuster, Ross Berkowitz & Alex Hedaya of Newmark.
• Sweetgreen (3,917 square feet, 10 years): The nationally loved restaurant brand known for its salads, plates and bowls was represented by David Firestein and Jacqueline Klinger of The Shopping Center Group. The landlord was represented by Ariel Schuster, Ross Berkowitz and Alex Hedaya of Newmark.
• Alidoro (1,004 square feet, 15 years): Italian specialty sandwich shop adds authentic New York food and beverage to serve the building’s tenants. Alidoro was represented by Jon Paul Pirraglia of Ripco while the landlord was represented by Ross Berkowitz and Alex Hedaya of Newmark.
• Jōji Box (1,966 square feet, 15 years): Michelin star chefs George Ruan, Wayne Cheng and Xiao Lin of Jōji omakase fame will open a second Jōji Box location, which will be expanded to include accessible and fast casual omakase sushi, following its success at One Vanderbilt Avenue. SL Green represented both the tenant and the landlord.

Located adjacent to Madison Square Park, the 27-story, 1.4 million-square-foot Midtown South office tower will provide the highest standard for today’s workplace with forward-thinking amenities and a cutting-edge healthy work environment.

Elsewhere in the Company’s portfolio, other notable retail lease signings include:

• Brasserie Cognac signed a new 13,687 square feet, 15-year lease at 461 Fifth Avenue, bringing the tower’s retail space to 100% leased. The tenant was represented by Scott Feldberg of GPG Management and the landlord was represented by Ariel Schuster, Ross Berkowitz and Jason Wecker of Newmark.
• Chase Bank renewed its 4,718-square-foot lease for five years at 810 Seventh Avenue. The tenant was represented by Michael O’Neill of Cushman & Wakefield and the landlord was represented in-house.

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 June 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, 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 of retail leases has SL Green (SLG) signed since Q1 2024?

SL Green (SLG) has signed retail leases totaling 66,014 square feet since the end of the first quarter of 2024.

What is the retail occupancy status at SL Green's One Madison Avenue?

SL Green has reached full retail occupancy at One Madison Avenue.

Which notable chef is opening a steakhouse at One Madison Avenue?

Chef Daniel Boulud is opening his first steakhouse experience, La Tête d'Or by Daniel, at One Madison Avenue.

When is Chelsea Piers scheduled to open its second Manhattan location at One Madison Avenue?

Chelsea Piers is scheduled to open its second Manhattan location at One Madison Avenue in August 2024.

What other retail lease has SL Green secured outside of One Madison Avenue?

SL Green has secured a 13,687 square feet, 15-year lease with Brasserie Cognac at 461 Fifth Avenue, bringing that tower's retail space to 100% leased.