From the May issue: As the commercial credit crisis kicks into
high gear in the New York market, SL Green, the city’s largest
commercial landlord, has found itself in the center of a growing storm.
The publicly traded investment trust, which owns 29 office buildings in
Manhattan alone, is facing the sudden reality of holding billions of
dollars in commercial debt in a real estate market that is rapidly
declining. After years of making highly leveraged deals, led by the
mammoth $6 billion acquisition of rival real estate investment trust
Reckson Associates in 2007, the company is now awash in a sea of debt.
What’s worse, it’s on a ship that is leaking revenue in the form of
dropping commercial rents. [more]

SL Green Chairman Stephen Green (left) and NYU’s Barry Hersh

The city’s largest office building landlord SL Green Realty is holding firm on 50 percent
renewal commissions in office leases despite a downturn in the economy
and competition from other large property owners who are paying full
commissions. The real estate investment trust headquartered in Midtown pays a 50
percent commission on renewals, a consistent fee the company has paid
for a decade, the company said in a statement released to The Real Deal. “We welcome the participation of brokers and have had a consistent
decade-long policy during both strong and weak market conditions to pay
a one-half commission on renewal transactions,” the statement said. Several leasing brokers said they were chafing under the policy. [more]