Posted Apr 18, 2025, 7:13 AM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
Posts: 56,622
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https://www.investing.com/news/transcrip...-q1-2025-beats-eps-forecast-93CH-3991673
Earnings call transcript: SL Green Realty Q1 2025 beats EPS forecast
04/17/2025
Quote:
Steve Sakwa, Analyst, Evercore ISI:
Thanks. Good afternoon. Mark, I know at the Investor Day and on other calls, you’ve talked about wanting to try and secure a new high quality development site in Midtown. I’m just curious, given kind of what’s going on in the macro and the uncertainty over tariffs and costs, how challenging is that to try and pencil out today? And is that something you’d still be looking at, say, this year? Or maybe that’s something more for next year?
Mark Holliday, Chairman and Chief Executive Officer, SL Green Realty Corp:
I think it’s completely delinked, Steve. These development projects are five to seven year journeys. And when we take a pen and pencil or computer to underwriting, this is not a question of two months ago, we were excited about development and two months later, we’re not. And next month we are. And next month we’re not based on the stock market tariffs.
There is an enormous scarcity of high quality office development sites that can be delivered over the next four or five years. And in a city like New York that is, you know, the pivotal CBD in this country and is growing and, is reaching all sorts of records on employment, on Wall Street profits, on bank earnings. There’s a confidence we have in the long term viability of this market that we would absolutely welcome the prospect of developing a significant new site in core Midtown Manhattan in our market, in SL Green territory. That’s for sure. And that hasn’t changed in my opinion or mind in the past three months.
My pricing it goes back to what I said earlier. On the bond question, might pricing change one way or the other? Maybe. Do I think rents have changed for that product? Absolutely not.
In this building alone at 1 Vanderbilt, we have a constant flow of inquiries for expansion, because we have great tenants here and elsewhere through the portfolio. And notwithstanding, you know, what you’re seeing in market, there’s still companies that are growing and taking advantage of this market and need more space. This isn’t anecdotal. These tenants who are ringing our doorbells and saying, we need to grow. And this isn’t like modest growth.
Some of these requirements are significant. And the issue I have right now is not tariffs. The issue I have right now is delivering 1,500,000 to 2,000,000 square feet of brand new Class A, One Vanderbilt like style office space to the most sophisticated base of tenants in the country that want to grow. And I’m as committed to that today as I was in December.
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Last edited by NYguy; Apr 18, 2025 at 7:54 AM.
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