Inside SL Green’s busy start to 2026

Despite being one of New York City’s biggest players, SL Green didn’t get everything that it wanted last year.

The Manhattan office giant saw its proposal for a $5.4 billion casino at 1515 Broadway in Times Square rejected by a local advisory committee, scrapping one of the company’s most ambitious redevelopment plans. SL Green was in the running to acquire Paramount Group, but Rithm ended up winning out with a $1.6 billion deal. And CEO Marc Holliday also expressed interest in acquiring the Chrysler Building several months ago, but his interest reportedly cooled since, and Tishman Speyer has emerged as the frontrunner.

At the same time, a foreclosure lawsuit tied to nearly $1 billion in debt at Worldwide Plaza, the Midtown tower SL Green owns with RXR, drags on.

But as the second quarter approaches, the city’s largest office landlord continues its attack at every angle.

The firm began executing its plan to sell roughly $2.5 billion of property while pursuing about $1 billion in acquisitions and development opportunities. The strategy pairs opportunistic buying with a steady recycling of capital.

Some of those bets were already taking shape late last year. SL Green went into contract to buy Park Avenue Tower at 65 East 55th Street for $730 million from Blackstone, a discount to what the private equity giant had invested in acquiring and renovating the building. The company moved on to its next major development, agreeing to buy the former Brooks Brothers flagship at 346 Madison Avenue, a site that could support an 800,000-square-foot office tower just steps from Grand Central.

Overseeing this flurry of sales, acquisitions, and development is Harrison Sitomer, recently promoted to president. The longtime investment chief has risen through the ranks since starting as an intern 15 years ago, and now he’s charged with executing the company’s $2.5 billion asset sales plan while steering new acquisitions and developments.

Early signs suggest the strategy is gaining traction. The firm has started the year with one of the strongest leasing runs in its history, signing more than 900,000 square feet of deals across its portfolio in the first quarter alone.

One of the biggest examples is The Carlyle Group, which signed leases totaling more than 200,000 square feet across Midtown. The private equity firm took 150,000 square feet at 245 Park Avenue while also adding space at the nearby MetLife Building. Carlyle is keeping its roughly 195,000 square feet at One Vanderbilt, as demand for top-tier office space around Grand Central remains high.

Artificial intelligence companies are rising as another powerful source of demand. AI startup Clay recently signed a 163,000-square-foot lease at 11 Madison Avenue, bringing the 2.3 million-square-foot tower to full occupancy. Another fast-growing tenant, Harvey AI, doubled its footprint at One Madison Avenue to about 185,000 square feet, filling the redeveloped building less than three years after it opened.

It’s becoming a pattern across Manhattan. AI firms leased roughly 325,000 square feet in 2024 and about 810,000 square feet in 2025. In just the first few months of 2026, the sector has already crossed the 500,000-square-foot mark.

Even older buildings are benefiting from the rebound. A recent 43,000-square-foot lease by patent law firm Groombridge, Wu, Baughman & Stone helped push 1185 Sixth Avenue to about 91 percent occupancy after years of tenant turnover.

While leasing momentum builds, SL Green is also using the moment to remake its balance sheet.

The REIT recently sold a minority stake in 100 Park Avenue to Rockpoint at a $425 million valuation. The company is also marketing 1350 Sixth Avenue, where it’s reportedly seeking about $360 million, along with other interests including a stake in 245 Park Avenue and a majority share of 750 Third Avenue, which is being converted into apartments.

Retail assets have also been part of the refocused strategy. SL Green and Jeff Sutton’s Wharton Properties recently sold the building at 690 Madison Avenue for $54.5 million. The property is leased entirely to Van Cleef & Arpels, whose parent company is believed to be the buyer.

The firm is also positioning for its next major development. SL Green purchased the former Brooks Brothers flagship building at 346 Madison Avenue for about $160 million at the end of 2025, a site that could support an 800,000-square-foot office tower just steps from Grand Central Terminal.

The playbook is straightforward. Lease up space, recycle capital through asset sales and position the company for the next generation of office development in Midtown.

There was plenty of other real estate news this week. Savills is aiming to expand its U.S. presence with the acquisition of Eastdil, the Alexander brothers were found guilty and internal turmoil at NJ Attorney’s office has slowed its criminal mortgage fraud charges.

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