Vornado Sees Tightening 'Landlords Market' in Manhattan

Realty trust reports strong leasing momentum, rising rents, and progress on major redevelopment projects

Published on Feb. 10, 2026

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Vornado Realty Trust executives said leasing momentum in Manhattan accelerated in 2025, positioning the company for what Chairman and CEO Steven Roth described as a tightening 'landlords market' in the city. Management pointed to rising demand for high-quality office space, improving occupancy, and a growing pipeline of deals, while also outlining major development and redevelopment initiatives and recent balance sheet actions.

Why it matters

As one of the largest commercial real estate owners in New York City, Vornado's performance and outlook provide valuable insights into the health of the Manhattan office market. The company's ability to drive rents and occupancy in its portfolio, particularly in the Penn District redevelopment projects, signals broader trends that could impact businesses and residents across the city.

The details

Vornado reported strong leasing activity in 2025, with average starting rents of $98 per square foot in Manhattan (excluding a large NYU lease). Mark-to-market results were +10.4% on a GAAP basis and +7.8% on a cash basis, with an average lease term of more than 11 years. The company said it led $100-per-square-foot leasing for the second year in a row, executing 46 leases totaling 2.5 million square feet. In Q4 2025, Vornado executed 25 New York office deals totaling 960,000 square feet at average starting rents of $95 per square foot.

  • Vornado expects to complete leasing the remaining space at PENN 2 this year.
  • Construction will commence in April on the 1.85 million square foot 350 Park Avenue project.
  • Vornado expects to break ground in the fall on a 475-unit rental residential project at 34th Street and 8th Avenue.

The players

Vornado Realty Trust

A publicly traded real estate investment trust focused on owning, leasing and managing commercial properties in the New York metropolitan area.

Steven Roth

Chairman and CEO of Vornado Realty Trust.

Michael Franco

President and CFO of Vornado Realty Trust.

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