NEW YORK | 15 Penn Plaza (Hotel Penn) | 1,050 FT / 315 M | 52 FLOORS

[NYguy]

https://www.costar.com/article/1901998029/manhattans-top-dollar-office-leases-jump-to-record-highs



By Andria Cheng
January 7, 2026

Most sought-after corridors

As to where New York tenants paying premium rents want to be, the JLL study found Park Avenue remained the most sought-after corridor, accounting for nearly 1.8 million square feet of $100-plus leasing in 2025.

….. Other in-demand corridors and neighborhoods included Avenue of the Americas, Vornado Realty Trust’s Penn District surrounding Penn Station, Hudson Yards and Manhattan West.

Among landlord winners, Vornado again leased the largest overall quantity of top-dollar space, totaling about 2.6 million square feet across 47 deals. Its Penn 1 and Penn 2 towers with direct access to Penn Station “emerged as the most active buildings by transaction count, combining for 25 top-tier deals,” JLL said.

Time for Vornado to turn up the heat.

[NYguy]

Please, please, jumpstart one of these hibernating projects....


https://www.bloomberg.com/news/articles/...nyc-base-out-of-park-avenue-office-tower

SocGen Considers Moving NYC Base Out of Park Avenue Office Tower


By Natalie Wong
January 16, 2026

French bank Societe Generale SA is considering relocating its New York headquarters from its current offices at 245 Park Ave., a skyscraper that occupies an entire city block.

The Paris-based firm is seeking roughly 500,000 square feet of offices elsewhere in Manhattan, according to people familiar with the matter, who asked not to be identified because the discussions are private.

Potential new locations include Vornado Realty Trust’s 15 Penn Plaza, RXR Realty and TF Cornerstone’s 175 Park Ave. and Boston Properties and the Moinian Group’s 3 Hudson Boulevard, the people said.

Societe Generale’s lease at 245 Park expires in 2032. The firm is also contemplating staying at its current building, the people said.

Large financial services firms have been actively looking for spaces in top-quality offices in Midtown, especially on Park Avenue, where companies including hedge fund Citadel and alternative asset manager Blue Owl Capital Inc. have expanded in recent years.

JPMorgan Chase & Co. opened its new megatower in that corridor late last year, and it’s spending about $1 billion to renovate the old Bear Stearns offices across the street.

With many of the most in-demand buildings running out of available space, new construction could be a viable option for firms seeking new offices.

Related Cos. and Oxford Properties Group recently secured a $1.6 billion loan for a new skyscraper at 70 Hudson Yards, which will house Deloitte’s US headquarters

[ChiND]

I’d like to see a new MSG there. MSG is already the oldest and worst arena in the NHL and the NBA. If it doesn’t move now and stays there in perpetuity, in fifty years, it will really be a joke.

Barclays and UBS are dramatically superior to MSG. Rangers and Knicks fans deserve better, and the 650,000 people who pass through Penn every day deserve a better station than one which is stuck under the worst arena in professional sports.

Vornado should build a new tower on the Gimbel’s site.

[Sky88]

Originally Posted by ChiND

I’d like to see a new MSG there. MSG is already the oldest and worst arena in the NHL and the NBA. If it doesn’t move now and stays there in perpetuity, in fifty years, it will really be a joke.

Barclays and UBS are dramatically superior to MSG. Rangers and Knicks fans deserve better, and the 650,000 people who pass through Penn every day deserve a better station than one which is stuck under the worst arena in professional sports.

Vornado should build a new tower on the Gimbel’s site.

I don't think there will be a new MSG. They're not capable of it. As for Vornado, well, wait and hope if you want to see a new tower in the area...

[ChiND]

MSG might stay. Such an unfortunate event would render Byford’s work a joke. He knows that it must go. Increased train capacity cannot occur in the current footprint with the worst arena in sports crushing Penn. Also, billions will have been wasted on the new tunnel since the track gridlock at Penn won’t be fixed if that massive tumor is not removed from Penn.

I’m an advocate of low, business-friendly taxes, but if MSG doesn’t move, its tax exemption should end.

https://www.ourtownny.com/news/now-s-the...square-garden-says-andy-byford-ME5327394

Bottcher asked Byford if there was a third option, improving Penn Station in a way that would leave “flexibility” if Dolan agreed later to move the Garden. That, replied Byford, was a poor idea.

“I can’t really see how that would happen,” Byford said, “and I think we’ve got to be careful here that we don’t end up blighting ourselves in that if you were to leave that question open, how much would you really want to spend on the new station? If you thought, well, then you’re going to have to come back and do it all again if the Garden suddenly moves. So, I think this is our opportunity to fix this issue once and for all.

Who knows what will happen. I’d like to see a new MSG between 33rd and 34th and an utterly colossal new tower on the Gimbel’s site, together with new ones on the old Modell’s and Duane Reade sites. And that’s just for starters….

We’ll have some idea by May…

[NYguy]

Originally Posted by ChiND

I’d like to see a new MSG there.

https://www.flickr.com/photos/71829982@N00/7420288904

[ChiND]

It’s clearly possible that the worst arena in sports will continue to crush Penn Station and that the latter will remain Tartarus with track gridlock too. I hope that doesn’t happen, but I acknowledge that it might.

[NYguy]

https://www.crainsnewyork.com/real-estate/societe-generale-weighs-moving-new-york-base-245-park-ave


January 20, 2026

French bank Société Générale is considering relocating its New York headquarters from its current offices at 245 Park Ave., a skyscraper that occupies an entire city block.

The Paris-based firm is seeking roughly 500,000 square feet of offices elsewhere in Manhattan, according to people familiar with the matter, who asked not to be identified because the discussions are private.

Potential new locations include Vornado Realty Trust's 15 Penn Plaza, RXR Realty and TF Cornerstone's 175 Park Ave. and BXP and the Moinian Group's 3 Hudson Blvd., the people said.

[ChiND]

Originally Posted by NYguy

https://www.crainsnewyork.com/real-estate/societe-generale-weighs-moving-new-york-base-245-park-ave


January 20, 2026

Apart from where they might wind up, 245 Park is a dump. I'm shocked that SLG is doing such a lackluster "make over." At a minimum, that eyesore needed a totally new facade. I really hope that SG doesn't stay there and anchors a new tower instead.

[ChiND]

I think that Vornado had an investors’ call this week. I’m curious what they said about this site.

[NYguy]

https://nypost.com/2026/02/01/business/p...ing-junky-retail-nyc-loses-retail-giant/

PENN District poised to grow by another block, replacing ‘junky retail’


By Steve Cuozzo
Feb. 1, 2026

Vornado Realty Trust’s PENN District transformation is poised to grow by another whole block.

The powerful REIT plans to create what a source called a “cohesive street-level experience” on both sides of Seventh Avenue between West 33rd and 34th streets, replacing what Vornado chairman Steve Roth recently called “junky retail.”

Vornado quietly bought up one parcel after another on the nondescript but heavily-trafficked block over the past few years. The next step, our sources said, will be demolishing the unattractive small buildings on the east side, to be followed by those on the west side. The few existing tenants are all on short-term leases.

The district is now home to more than 5 million square feet of prime office space, 300,000 square feet of public plazas and scores of eating and drinking venues, including huge new Avra inside the Moynihan building and Blue Ribbon Steak & Sushi. Vornado is also landlord to Primark, the international clothing merchant opening its US flagship at 150 W. 34th St.

The new Seventh Avenue storefronts — to be installed inside three-level “retail boxes” — will aim to sign actual stores, not restaurants or fast-food operations. Demolition of old structures is to start later this year with completion of the new spaces targeted for 2027.

Vornado EVP and co-head of real estate Glen Weiss said his company’s “transformative work is evident across all corners of the neighborhood. With Newmark, we will make the Penn District retail environment New York’s next big event.”

An even bigger event will be a new skyscraper to rise on the former Hotel Pennsylvania site. Vornado’s mum on plans but Roth told investors last fall he was in talks with a major tenant to anchor a 1,000 foot-tall tower.

[ChiND]

This would be nice, but they don’t own several key pieces of garbage on the east side of 7th between 33rd and 34th. To clean up this area, they also need to raze a lot of the low rise garbage on 34th that’s east of the Old Navy store. Lastly, other than Farley, 8th Avenue around the Garden is absolutely disgusting. It looks like a third-world city and needs serious attention. The Grand Penn plan would solve these problems and dramatically improve this forlorn area in one fell swoop. If it’s not chosen, Vornado has some serious work to do to improve this dystopian dump.

By the way, I recall that within the past few months, one of the crappy little buildings on the east side of 7th between 33rd and 34th (425 7th) was bought by someone other than Related. Specifically, 425 Seventh Avenue was sold in November 2025 to the O5 Group, an affiliate of The Oved Group, for $30 million.


That Vornado let the opportunity to buy this pass suggested to me that they think that eminent domain proceedings will occur with respect to the parcels they don't own.

[Crawford]

The article implies that they own the block. Maybe they're using shell companies to mask the ownership, which isn't uncommon for assemblages.

[ChiND]

Originally Posted by Crawford

The article implies that they own the block. Maybe they're using shell companies to mask the ownership, which isn't uncommon for assemblages.

That's generally how it works, but when the sale of 427 occurred, it suggested that Oved was unrelated to Vornado. Also, the last I checked, Vornado doesn't own the vile, putrid eyesore on the SE corner of the block that contains the Sbarro, among other garbage.

Razing the junk that they own indicates nothing since this junk will come down if Grand Penn is selected in May.

Before people flip out about MSG possibly moving, I'm not saying that it will happen, but it's certainly a very strong possibility.

Ever since my first Rangers game 45 years ago, this block has always been utterly vile and disgusting.


Flickr

Another adjacent Achilles Heel


Jenel

Who knows what will happen, but this would be much nicer than the current Gahenna. I’d love to see a massive new office tower on the Gimbel’s site.


GPA

[NYguy]

https://investors.vno.com/news-releases/...engages-newmark-next-phase-penn-district

Vornado Realty Trust Engages Newmark for Next Phase of THE PENN DISTRICT Retail Renaissance


February 2, 2026

The reinvention of Vornado’s retail holdings is a core component of its $2.5 billion revitalization of THE PENN DISTRICT campus. Over the past decade, Vornado has redeveloped more than 5 million square feet of Class A office space, introduced more than 300,000 square feet of inviting public plazas, and led a series of public-private partnerships to enhance the area’s transit infrastructure. In conjunction with these projects, Vornado has developed 1.1 million square feet of new retail throughout its PENN DISTRICT holdings.

The newly created space is now home to a wide array of retailers, including more than 70 curated food and beverage purveyors. Plaza 33, the newly landscaped pedestrian square, is populated with a series of standout restaurants including The Dynamo Room, Bar Primi and Blue Ribbon Sushi & Steak. At the new Moynihan Train Hall, Vornado has created a diverse dining scene anchored by Avra Estiatorio. Vornado also led the expansion and redevelopment of the Long Island Rail Road concourse, Penn Station’s main underground passageway, which is now fully lined with a mix of national and local dining options and retailers.

Vornado is now in the initial stages of creating a cohesive street-level retail experience along both sides of Seventh Avenue between 33rd and 34th Streets. Working with Newmark, Vornado will develop this corridor to complement its existing anchors, Macy’s and Primark’s 78,000 sf flagship store set to open this coming Spring. Newmark will also work with Vornado on its Moynihan Retail Corridor, which serves as the central spine of the Moynihan Train Hall.

“Through our redevelopment of THE PENN DISTRICT, we have thoughtfully curated a diverse blend of local and nationally owned restaurants, cafes and shops that offer something for all workers, residents, commuters and visitors who experience the neighborhood on a daily basis,” said Vornado Executive Vice President and Co-Head of Real Estate Glen Weiss.

“We have methodically remade THE PENN DISTRICT as a 24/7 neighborhood for every occasion and every taste. The success of our transformative work is evident across all corners of the neighborhood. In partnership with Mark and the Newmark team, we will make THE PENN DISTRICT retail environment New York’s next big event.”

“It is a privilege to partner with Chairman and CEO Steve Roth, Glen Weiss and the entire Vornado team – one of the most significant and visionary real estate owners not just in New York City, but across the continent – as we take on this extraordinary responsibility,” Mark Masinter said.

“With Madison Square Garden as the world’s premier venue, Penn Station as the western hemisphere’s busiest transit hub, and 34th Street and Seventh Avenue among the most active intersections in North America, the opportunity to help shape the future of THE PENN DISTRICT is a remarkable honor for Newmark to advise.”

[NYguy]

https://finance.yahoo.com/quote/VNO-PO/earnings/VNO-PO-Q4-2025-earnings_call-408636.html

Feb 10, 2026

Steven Roth
Chairman and CEO


At our PENN 15 site, we have been busy responding to anchor tenant requests for proposals for substantial blocks of space.

..... the cost of a new build has doubled and now costs, say, $2,500 per foot to build a new tower in Manhattan. You can all do the math. Even at these higher rents, it's touch and go to make a new tower pencil. And by the way, these new builds are multi-billion dollar monsters, which are very difficult for most to finance.

[Busy Bee]

Can someone on the industry please break down why exactly construction costs have doubled? That is insane.

[ChiND]

..... the cost of a new build has doubled and now costs, say, $2,500 per foot to build a new tower in Manhattan. You can all do the math. Even at these higher rents, it's touch and go to make a new tower pencil. And by the way, these new builds are multi-billion dollar monsters, which are very difficult for most to finance.

Risks and Challenges
Potential market saturation in Manhattan’s office space sector.
Economic uncertainties impacting tenant demand.
Rising interest rates affecting financing costs.
Execution risks associated with large-scale development projects.
Competition from other real estate developers in premium segments.

The foregoing quotes are hardly a ringing endorsement for 15 Penn; instead, they make a potent case for a new MSG between 33rd and 34th.

This isn’t Park Avenue, and no one will pay $300+/sf to anchor a new tower here. Smaller towers on the old Modell’s site and elsewhere would do very well, especially if Tartarus is cleaned up. Also, it’s not remotely clear that Vornado would get federal financing like RXR appears to be getting for 175 Park or a huge equity investment from a very deep pocketed entity like Citadel at 350 Park. Thus, as Roth concedes, financing a $5 billion tower at 15 Penn would not be easy.

Moving MSG would not only fix Penn (and the oldest and worst arena in sports), but it would also clean up this dystopian mess of an area. Vornado would not only make a lot of money on that project, but the massive gentrification of the area would dramatically raise the value of Vornado's existing buildings there and of planned projects on sites it owns in the area.

Gahenna

Flickr

Tartarus

Jenel

Valhalla

GPA

[ChiND]

Although Vornado "supports" ASTM's plan, the Grand Penn plan is in its interest given Roth's candid admissions regarding the Sisyphean task inherent in building 15 Penn.

Higher Build and TI Costs Tighten Development Economics

Management flagged that construction and tenant improvement costs in Manhattan remain elevated, with new towers cited at around $2,500 per square foot to build and TI spending staying stubbornly high. While firm rents offset some of that pressure, the combination makes underwriting new projects more difficult and raises the bar for future development decisions.

https://www.tipranks.com/news/company-an...on-penn-district-upswing#google_vignette

It is entirely possible that we will miss the opportunity of a lifetime by selecting ASTM's low bar, underwhelming plan, which amounts to a $7b application of lipstick on a pig.

However, if ASTM is chosen, I would not be surprised if Vornado reprises the Alexander's and Rizzoli's debacles, and we have a huge, empty lot for the next twenty years making this dismal, dystopian area even worse. Thus, I hope that the worst train station in the Northeast, the worst arena in sports, and the worst area of Midtown are transformed into the Elysian Fields pursuant to the Grand Penn plan.


GPA

[BK1985]

How many time are you going to reshare the same images over and over again, sometimes within the same page? we get it, you have a total boner for this misplaced "park" and shitty faux classical lipstick over existing glass buildings and here you are calling something lipstick on a pig when in fact this gpa proposal is more or less doing the same exact thing. both proposals that we have seen have drawbacks, the original Penn is gone and never coming back. the sooner you understand/admit that to yourself the better.