SL Green Lands News America Lease, Reports Q1 Earnings
- Apr 22, 2008
SL Green Realty Corp. has announced that News America Inc. has signed a new 12-year, 84,000-square-foot lease to occupy floors 25, 26 and 27 at Manhattan’s 1185 Ave. of the Americas. The lease boosts the building’s occupancy to 99 percent.SL Green also has announced that the Omnicom Group has signed a lease renewal covering 55,000 square feet at 220 East 42nd St. The 37-story, 1 million-square-foot tower also known as “The News Building,” was made famous in the Superman television series in the 1950’s, and the landmarked lobby featuring a rotating globe continues to be a tourist attraction today. Lee Feld of Feld Real Estate exclusively represented Omnicom in the transaction.In addition, Sl Green has reported that The City of New York has renewed its 20,000-square-foot lease on the eighth floor of 1250 Broadway, the 39-story, 749,000-square-foot tower located at West 32nd St. SL Green’s Elaine Anazagasty negotiated on behalf of the landlord. SL Green has also reported its first-quarter earnings. FFO was $87.9 million, or $1.44 per share down 29.1 percent from a year ago, which was $2.03 per share. First quarter revenues fell 4.6 percent to $272.7 million. Net income available totaled $125.9 million, or $2.14 per share, down $21.5 million from a year ago, when it was $2.53 per share. In today’s webcast, CEO Mark Holliday said, “We are pleased to be able to report that we have no projects that have been deferred in this slowdown.” He went on to say, “We believe the leasing market will soften due to lack of participation by the Financial industry,” as is reflected by the fact that SL Green’s new major leases do not include firms from that sector.Average per-square-foot starting Manhattan office rents were $62.32, including 1185 6th ave. (pictured), reflected continued growth; average starting suburban office rents were $31.52 per square foot, a 17.6 percent increase. Significant leasing activities during the first quarter included: Early renewals with Crain Communications Inc. for 99,000 square feet at 711 Third Ave.; early renewal with Omnicom Group Inc. for 55,000 square feet at 220 East 42nd St.; a new lease with Sirius Satellite Radio Inc. for 45,000 square feet at 1221 Ave. of the Americas; a new lease with NYU Hospital Center for 44,000 square feet at 673 First Ave.; a new lease with Sonnenschein, Nath & Rosenthal got 44,000 square feet at 1221 Ave. of the Americas; and a new lease with The Segal Co. for 139,000 square feet at 333 West 34th St.