Leasing Success and Guidance
Q: Are you ahead of leasing guidance for the year?
A: Yes, we are running ahead of our guidance, having had a very strong first half of the year, and we expect to exceed our goal of leasing 2 million square feet for the year.

Fee Income Growth
Q: Can you discuss the increase in fee income this quarter?
A: Our fee income this quarter was $33 million, up from $13 million in the prior quarter. These fees can be lumpy but are recurring as categories, including special servicing, asset management, and other ancillary fees.

Asset Valuation at 245 Park
Q: How is leasing progress affecting the valuation of 245 Park?
A: We have made significant leasing progress at 245 Park Avenue, executing over 500,000 square feet of leases in 13 months, which is on budget and plan. This progress enhances the asset's value, and we expect a premium to the valuation from when we transacted 13 months ago.

One Vanderbilt Stake Sale
Q: Any update on the potential stake sale in One Vanderbilt?
A: We are working on transaction documents with multiple offers from investors for One Vanderbilt and expect to share news later this quarter. The building is fully leased, with debt locked in through 2031 at under 3%, and we have over $30 per square foot of average embedded rent growth.

One Madison Leasing Progress
Q: Can you update us on leasing at One Madison?
A: One Madison is currently 65% leased, over 70% economically leased, and is right on our original budget. The building opens in November, the tower portion is fully leased, and we have five large podium floors remaining. We expect strong demand as large tenants return to the Midtown South market.

Transaction Market and Underwriting
Q: How are investors underwriting office leases and returns in NYC?
A: Investors have confidence in our ability to underwrite assets. For the right assets, they are comfortable with fundamentals like rents and downtime. The main challenge is the lack of debt liquidity, which is why we are launching our debt fund to provide that liquidity.

Market Rent Growth
Q: Are the recent rent increases sustainable?
A: The increase in rent spreads reflects both mix and market growth. On Park Avenue, average starting rents increased over 10%, from $93 to over $100 per square foot in the second quarter. We are pushing rents, especially in high-quality buildings, and expect this trend to continue while concessions remain stable.

Special Servicing Capacity
Q: Can you handle more assignments in special servicing?
A: Yes, we have over $3 billion of active special servicing and asset management, with another $6 billion where we're named special servicer. We have the capacity to take on more assignments, and this is a high-margin business that contributes directly to our bottom line.

SUMMIT in Paris Announcement
Q: Any details on the SUMMIT in Paris?
A: We'll have a more formal rollout in the coming months. There's lots to share, and it's very exciting, but we'll leave it at that for now.

Casino Bid Update
Q: What's the status of the casino bid?
A: The decision is pending with the governor on when to call for submissions. We are ready with our bid for a Times Square Caesars Palace casino, which would bring significant economic development, jobs, and tax revenue to New York City. We hope to prevail and would like to see the process move forward.

Capital Plan and Equity Issuance
Q: Is issuing equity part of your capital plan?
A: While issuing equity is available to us, we don't see the need currently, as our balance sheet and liquidity are strong. We would consider it if we saw additional investment opportunities, but it remains relatively expensive.

Same-Store NOI Guidance
Q: Should we expect an acceleration in same-store NOI in the second half?
A: We are trending ahead in the first half, but reaching our goal of 1% to 2% same-store NOI growth will be challenging. We'll strive to push the bottom line and manage expenses to meet the goal, but it's too early to say.

JV Debt Fund Focus
Q: Is the JV debt fund focusing only on Manhattan?
A: Yes, the focus of the JV debt fund is Manhattan. However, as we grow our special servicing and asset management business, we're taking on assignments outside of Manhattan, which is purely a fee business for us.

Leasing Demand for Lower Floors
Q: Do you expect greater leasing demand for lower floors?
A: While market vacancy is weighted towards lower floors, on Park Avenue, vacancy is less than 9%, and we're pushing rents across all floors. Concessions remain stable, and we're seeing price appreciation in better-quality buildings and tower floors.