Madon Ferran

Madon Ferran inquired about the drivers behind the uptick in New York office TIs and LCs as a percentage of initial rent in the quarter, and the expected trend for the rest of 2026. She also asked about the reasons for the decline in the projected cash yield for Sunset Pier 94 despite solid leasing activity.

Answer

Glen Weiss, EVP of Office Leasing, clarified that the uptick in TIs and LCs was an "outlier quarter" driven by specific deals with strong credit tenants, not a trend. He expects a return to 12%-13% and anticipates concessions to tighten, with free rents coming down and TIs squeezing. Steven Roth, Chairman and CEO, attributed the decline in Sunset Pier 94's projected cash yield from 10% to 9% to "reality," citing challenges in the streaming business and the short-term nature of the initial leases.

Madon Ferran inquired about the drivers behind the uptick in New York office TIs and LCs as a percentage of initial rent in the quarter, asking about the expected trend for the rest of 2026, and also questioned the reasons for the decline in the projected cash yield for Sunset Pier 94 despite solid leasing activity.

Answer

Glen Weiss, EVP of Leasing, clarified that the uptick in TIs and LCs was an "outlier quarter" due to specific deals for desirable tenants, not a trend, and expects concessions to tighten, with free rents already coming down. Steven Roth, Chairman and CEO, explained that the decline in Sunset Pier 94's projected cash yield from 10% to 9% was due to "reality" and challenges in the streaming business, despite 100% short-term leasing at opening.