Annabell Ehr

Annabell Ehr asked about the expected retention rate for Vornado's remaining 2026 expirations, particularly the 600,000 sq ft in the fourth quarter, and if any larger blocks of space were noteworthy. She also inquired about the expected trends for tenant inducements (TIs) and free rent.

Answer

Glen Weiss, EVP of Office Leasing, expressed confidence in the 2026 expirations, expecting two larger blocks to renew, and stated Vornado is in "great shape" for future expirations. Steven Roth, Chairman and CEO, provided a broader market outlook, noting that Manhattan office rents are rising faster than TIs or tenant inducements are decreasing. He believes free rent can decline, but TIs will remain "very, very sticky" due to construction costs. Glen Weiss agreed, adding that Vornado is actively squeezing TIs and seeing free rents come down more easily.

Annabel Ehr asked about Vornado's expected retention rate for its remaining 2026 lease expirations, particularly the 600,000 sq ft in the fourth quarter, and if there were any larger blocks of space to highlight.

Answer

Glen Weiss, EVP of Leasing, expressed confidence in the 2026 expirations, stating that two large block expirations are expected to renew, and that Vornado is in "great shape" for future expirations through 2027. Steven Roth, Chairman and CEO, added that the Manhattan office market is tightening, with rents rising faster than TIs are decreasing, and free rent is expected to decline.