Vornado signs 30 Manhattan office leases at $123 a square foot

Vornado Realty Trust signed 30 Manhattan office leases totaling 489,000 square feet in the third quarter at an average starting rent of $123 a square foot. That compared with $113 a square foot across the first nine months of 2026.

Vornado booked a net loss of $47.1 million, against net income of $11.5 million in the third quarter of 2025. Commercial Observer attributed the swing to depreciation and amortization. Funds from operations came to $126.6 million, up from $114.5 million a year earlier. Revenue rose to $467.6 million from $453.7 million. CEO Steven Roth said comparable FFO rose 14% year on year.

The $10 gap between the third-quarter starting rent and the nine-month average shows new Manhattan leases are signing above the rents already on the books. Same-store net operating income at the New York office portfolio rose 11.9%. Roth called the mark-to-market "eye-catching."

Penn 1, the 2.5 million-square-foot Midtown tower, is roughly 96% leased after 10 deals totaling 248,000 square feet in the quarter. Vornado also closed a $3.3 billion construction loan for 350 Park Avenue, the supertall it is developing with Ken Griffin's Citadel and Rudin, as Private Wealth Daily previously reported. Roth said overall Manhattan third-quarter leasing was 10 million square feet, above the five-year and 10-year quarterly averages.

"We are most definitely in a landlord's market," Roth said on the call, describing demand for Class A space in a market of roughly 180 million square feet.