SL Green CEO Marc Holliday, who has been one of the biggest advocates for returning to the office, had some sobering words at the company’s investor day.
“New York is a challenging office leasing market right now,” Holliday said Monday, citing high office vacancy and “tepid” leasing demand.
Much of that has to do with the uncertain state of the economy, which Holliday said has caused many tenants to hit pause on their leasing plans. But the CEO, who this time last year was cheering the city’s recovery, acknowledged that the return to office hasn’t played out as he anticipated.
“The hybrid work model has persisted far longer than I expected it to,” he said.
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Although New York City now has more office jobs than it had before the pandemic, Holliday said this is the first year that a “healthy New York economy didn’t align with the health of the overall office sector.”
Manhattan’s largest office landlord hasn’t suddenly become a pessimist. Holliday said SL Green is on track this year to sign 2.4 million square feet worth of leases, which he said surpasses its expectations.
In their presentation, SL Green executives hyped their proposal with Caesars Entertainment and Jay Z’s Roc Nation to bring a casino to Times Square. They also announced a deal with chef Daniel Boulud to bring a culinary market and steakhouse to the REIT’s One Madison Avenue development and unveiled plans for a $170 million redevelopment of 245 Park Avenue.