Seth [indiscernible]'s questions to Vornado Realty Trust (VNO) leadership • Q1 2025
Question
Seth [indiscernible] from Citi inquired about changes in tenant behavior, such as improvements in concessions or an increase in early renewal activity, in addition to rent growth. He also asked if the differing capital intensity of office versus apartments alters Vornado's long-term investment strategy.
Answer
Executive Glen Weiss confirmed that rents are rising and free rent periods are decreasing, though tenant improvement (TI) allowances are stable. He noted a significant trend of tenant expansion across various industries. President and CFO Michael Franco added that the strategy is to own the highest-quality buildings where capital investment is justified by rent growth. Chairman and CEO Steven Roth concurred, expecting base rents and free rent to improve but not TI allowances.