Manas Abic's questions to Paramount Group Inc (PGRE) leadership • Q2 2025
Question
Manas Abic of Evercore ISI inquired about tenant demand and asking rents for 1633 Broadway, particularly concerning the upcoming Showtime Networks move-out. He also asked about the trajectory of tenant improvement costs, questioning if the high level seen in the quarter represents a new baseline.
Answer
Chairman, CEO & President Albert Behler noted strong performance at 1633 Broadway, highlighting its retail success. Peter Brindley, Executive VP & Head of Real Estate, added that they are actively negotiating on the Showtime space with asking rents between $70-$90 psf. Regarding costs, Brindley explained that New York concessions have stabilized, while elevated TIs in San Francisco were a strategic choice to secure long-term leases and build momentum, noting the success of this strategy in their growing pipeline.