Bloomberg Lease Details
Q: Was the Bloomberg lease in your pipeline; lease terms?
A: The 1.2 million sq ft Bloomberg lease wasn't in our reported pipeline as it came together quickly. It's a 15-year lease starting today, with a substantial positive mark-to-market. Concessions are appropriate for a renewal but significantly below what they would have been for a new tenant. "

One Vanderbilt JV Sale Status
Q: Is the One Vanderbilt stake sale on track; do you need to sell?
A: Yes, we're confident we'll close the transaction in Q4, affirming One Vanderbilt's position as a premier office tower. We don't have to sell but it's part of our original plan to reduce ownership to 50-60%, optimizing returns and enhancing fee generation. "

Debt & Equity Market Reopening
Q: Are opportunities more pronounced in DPE or direct purchases?
A: It's both; debt and equity liquidity are returning quickly. This year, there's $5.3 billion in SASB deals, compared to zero last year. Spreads are compressing, and equity follows debt. Our focus now is on DPE, which is customary post-downturn before moving into direct equity deals. "

Mortgage Servicing Business Growth
Q: How much income is coming from mortgage servicing; outlook?
A: The business is growing fast, throwing off substantial fee income that mostly goes to the bottom line. We have $5 billion in active assignments, $6.8 billion where we're named but assets aren't yet in special servicing, and an additional $3 billion in pipeline assignments. "

Alternative Strategy Portfolio Progress
Q: Does the improving environment help ASP negotiations?
A: Yes, the market's improvement helps us reevaluate ASP assets. We've had good results extracting value from them, like with 717 Fifth, 719 Seventh, and 2 Herald. We continue to work on optimizing these assets, which are mostly non-recourse, aiming for full recovery. "

Financing Markets, Lenders Warming Up
Q: Are traditional lenders warming up to office lending again?
A: Absolutely; we expect in 2025, major banks will focus on growth and new lending. Our assets are strong and not overleveraged, so lenders are willing to refinance with minimal principal paydowns. It's natural for lenders to work with us until the market fully recovers. "

Leasing Trends and Concessions
Q: Have we passed peak concessions in New York overall?
A: Yes, concessions peaked last year. We've seen no increase in free rent or TI allowances this year. As rents rise more materially, concessions will start to tighten, with free rent reducing first and TI allowances later. "

Tech Sector Leasing Demand Increase
Q: Any updates on tech tenants' appetite for space?
A: Tech companies are increasingly active, with over 6 million sq ft of active searches, up from 3 million a year ago. Growth is driven by AI initiatives, organic expansion, and a return-to-office mentality, leading to significant leasing activity. "

Office-to-Residential Conversions
Q: What's your view on office-to-residential conversions?
A: We're on target with expectations; there's an accelerated city program with around 75 applications totaling over 25 million sq ft. We believe over 25 million sq ft will convert in the next 5-7 years, reducing office supply and contributing to net absorption. "

Acquisitions and Funding Plans
Q: How are you thinking about funding acquisitions; equity issuance?
A: We'll discuss details in December, but we see real estate investment as a spectrum between debt and equity, seeking the best opportunities. We have various capital sources, including possible equity issuance if the price is right, but we're currently comfortable with our capital levels. "