Item 2. Properties
ITEM 2. PROPERTIES
Summary of Office, Retail, and Multifamily Portfolio
As of December 31, 2024 , our office and retail portfolio was comprised of approximately 7.8 million rentable square feet of office space and 0.8 million rentable square feet of retail space and was approximately 88.6% occupied and 93.5% leased, yielding approximately $544.0 million of annualized rent. We have 10 office properties and our retail properties are comprised of retail space at the base of our New York City office and multifamily properties, four standalone retail properties located in Manhattan and a portfolio of retail assets on North 6th Street (the "North Sixth Street Collection") in Williamsburg, Brooklyn. All properties are located in dynamic retail corridors with convenient access to mass transportation, a diverse te nant base and high pedestrian traffic. Our real estate segment includes all activities related to the ownership, management, operation, acquisition, repositioning and disposition of all of our real estate assets other than the observatory at the Empire State Building, which is included in our Observatory segment.
The tables below present an overview as of December 31, 2024 .
Annualized
Rentable Percent Percent Rent per
Square Occupied Leased Annualized Occupied Number of
Property Name Location or Sub-Market Feet (1)
(2),(3)
(3),(4)
Rent (5)
Square Foot (6)
Leases (7)
Office - Manhattan
The Empire State Building Penn Station -Times Sq. South 2,712,743 92.5 % 95.5 % $ 167,921,372 $ 67.66 150
One Grand Central Place Grand Central 1,231,231 84.9 % 95.2 % 69,263,888 66.39 137
1400 Broadway (8)
Penn Station -Times Sq. South 917,281 87.0 % 94.5 % 48,759,260 61.09 18
111 West 33rd Street (9)
Penn Station -Times Sq. South 639,595 97.6 % 100.0 % 43,427,737 69.53 22
250 West 57th Street Columbus Circle - West Side 474,790 83.5 % 84.8 % 26,300,689 66.45 30
1359 Broadway Penn Station -Times Sq. South 456,567 80.7 % 90.8 % 23,022,570 62.51 29
501 Seventh Avenue Penn Station -Times Sq. South 454,788 90.7 % 90.7 % 22,376,790 54.39 19
1350 Broadway (10)
Penn Station -Times Sq. South 384,225 87.4 % 93.9 % 20,143,028 60.15 49
1333 Broadway Penn Station -Times Sq. South 296,349 83.4 % 90.0 % 14,653,535 59.27 12
Office - Manhattan 7,567,569 89.0 % 94.2 % 435,868,869 65.00 466
Office - Greater New York Metropolitan Area
Metro Center Stamford, CT 282,276 73.2 % 74.9 % 11,727,761 56.76 20
Office - Greater New York Metropolitan Area 282,276 73.2 % 74.9 % 11,727,761 56.76 20
Total/Weighted Average Office Properties 7,849,845 88.4 % 93.5 % 447,596,630 64.76 486
Retail Properties
112 West 34th Street (9)
Penn Station -Times Sq. South 93,057 100.0 % 100.0 % 25,078,377 269.49 4
The Empire State Building Penn Station -Times Sq. South 88,445 77.4 % 78.7 % 7,856,065 114.72 11
North Sixth Street Collection Williamsburg - Brooklyn 87,880 77.3 % 90.4 % 8,964,050 131.99 15
One Grand Central Place Grand Central 70,810 100.0 % 100.0 % 7,866,157 111.09 12
1333 Broadway Penn Station -Times Sq. South 67,001 100.0 % 100.0 % 10,381,904 154.95 4
250 West 57th Street Columbus Circle - West Side 63,443 93.2 % 93.2 % 8,571,735 145.04 6
10 Union Square Union Square 57,094 91.8 % 91.8 % 8,290,772 158.25 9
1542 Third Avenue Upper East Side 56,211 95.0 % 95.0 % 2,511,068 47.03 3
1010 Third Avenue Upper East Side 38,235 100.0 % 100.0 % 3,421,053 89.47 2
1359 Broadway Penn Station -Times Sq. South 29,247 99.4 % 99.4 % 2,221,959 76.40 5
501 Seventh Avenue Penn Station -Times Sq. South 27,213 73.1 % 89.4 % 1,433,160 72.08 6
77 West 55th Street Midtown 25,388 100.0 % 100.0 % 2,083,627 82.07 3
1350 Broadway (10)
Penn Station -Times Sq. South 19,511 44.0 % 100.0 % 2,161,613 251.94 4
1400 Broadway (8)
Penn Station -Times Sq. South 17,017 82.2 % 82.2 % 1,670,565 119.50 6
561 10th Avenue Hudson Yards 11,822 100.0 % 100.0 % 1,618,301 136.89 2
298 Mulberry Street NoHo 10,365 100.0 % 100.0 % 1,981,708 191.19 1
345 East 94th Street Upper East Side 3,700 100.0 % 100.0 % 254,444 68.77 1
Total/Weighted Average Retail Properties 766,439 90.4 % 94.1 % 96,366,558 139.02 94
Portfolio Total 8,616,284 88.6 % 93.5 % $ 543,963,188 $ 71.52 580
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(1) Excludes (i) 195,410 square feet of space across the Company's portfolio attributable to building management use and tenant amenities, (ii) 85,334 square feet of space attributable to the Company's Observatory, and (iii) square footage related to the Company's residential units.
(2) Based on leases signed and commenced as of December 31, 2024 .
(3) Percent occupied and percent leased exclude 110,035 rentable square feet of broadcasting and storage space.
(4) Includes occupied space plus leases signed but not commenced as of December 31, 2024.
(5) Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.
(6) Represents annualized rent under leases commenced as of December 31, 2024 divided by occupied square feet.
(7) Represents the number of leases at each property or on a portfolio basis. If a tenant has more than one lease, whether or not at the same property, but with different expirations, the number of leases is calculated equal to the number of leases with different expirations.
(8) Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 39 years (expiring December 31, 2063).
(9) Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 52 years (expiring June 10, 2077).
(10) Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 26 years (expiring July 31, 2050).
Tenant Diversification
As of December 31, 2024 , our office and retail portfolios were leased to a diverse tenant base consisting of approximately 580 leases. Our tenants represent a broad array of industries as follows:
Diversification by Industry Percent (1)
Arts and entertainment 3.1 %
Broadcast 1.0 %
Consumer goods 16.2 %
Finance, insurance and real estate 15.0 %
Government entity 2.1 %
Healthcare 1.7 %
Legal services 5.9 %
Non-profit 4.8 %
Professional services (not including legal services) 9.7 %
Retail 19.4 %
Technology, media and advertising 18.2 %
Others 2.9 %
Total 100.0 %
(1) Based on annualized rent.
The following tables set forth information regarding the 10 largest office tenants and 10 largest retail tenants in our commercial portfolio based on the respective annualized rent as of December 31, 2024 .
Top 10 Office Tenants Percent of Occupied Rentable Square Feet (2)
Percent of Office Annualized Rent (3)
Tenant Property Lease Expiration (1)
LinkedIn Empire State Building Mar. 2025 - Aug. 2036 6.7 % 7.4 %
Flagstar Bank 1400 Broadway Aug. 2039 4.5 % 4.3 %
Centric Brands Inc. Empire State Building Oct. 2028 3.7 % 3.1 %
PVH Corp. 501 Seventh Avenue Jan. 2026 - Oct. 2028 3.4 % 3.0 %
Institutional Capital Network, Inc. One Grand Central Place Dec. 2041 2.0 % 2.3 %
Coty Inc. Empire State Building Jan. 2030 2.3 % 2.0 %
Macy's 111 West 33rd Street May 2030 1.9 % 2.0 %
Li & Fung 1359 Broadway, ESB Oct. 2027 - Oct. 2028 2.2 % 1.9 %
FDIC Empire State Building Dec. 2025 1.7 % 1.7 %
Shutterstock, Inc. Empire State Building Apr. 2029 1.6 % 1.7 %
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Top 10 Retail Tenants Percent of Occupied Rentable Square Feet (4)
Percent of Retail Annualized Rent (5)
Tenant Property Lease Expiration (1)
Sephora USA, Inc. 112 West 34th Street Jan. 2029 1.6 % 11.0 %
Target Corporation 112 West 34th St., 10 Union Sq. Jan. 2038 11.7 % 9.8 %
URBAN OUTFITTERS 1333 Broadway Sep. 2029 8.2 % 8.7 %
Foot Locker, Inc. 112 West 34th Street Sep. 2031 4.9 % 8.1 %
The TJX Companies, Inc. 250 West 57th Street Nov. 2030 6.7 % 4.8 %
CVS Albany, L.L.C. 298 Mulberry Street Jan. 2030 - Dec. 2040 3.1 % 3.7 %
New Cingular Wireless PCS, LLC 250 West 57th Street, ESB, 10 Union Sq. Jan. 2029 - Apr. 2033 1.3 % 3.4 %
JP Morgan Chase Bank One Grand Central Place Dec. 2027 3.1 % 3.2 %
The New York City School Construction Authority 1010 Third Avenue Mar. 2039 4.1 % 3.1 %
Starbucks 1542 Third Avenue, 1350 Broadway, 1359 Broadway, 10 Union Sq., ESB Jun. 2025 - Oct. 2032 4.7 % 3.0 %
(1) Expiration dates are per lease and do not assume exercise of renewal or extension options. For tenants with more than two leases, the lease expiration is shown as a range.
(2) Represents the percentage of occupied rentable square feet of the Company's office portfolio.
(3) Represents the percentage of annualized rent, including base rent and base rent and current reimbursement for operating expenses and real estate taxes, of the Company's office portfolio.
(4) Represents the percentage of occupied rentable square feet of the Company's retail portfolio.
(5) Represents the percentage of annualized rent, including base rent and base rent and current reimbursement for operating expenses and real estate taxes, of the Company's retail portfolio.
Lease Expirations
The following table sets forth new and renewal leases entered into at our properties, the weighted average annualized cash rent per square foot for new and renewal leases executed during the year, the previous weighted average annualized cash rent prior to the renewal or re-leasing of these leases and the percent increase in mark-to-market rent.
Year Ended December 31,
2024 (1)
2023 (1)
2022 (1)
New and renewal leases entered into during the year (square feet) 1,324,824 981,907 1,223,325
Weighted average annualized cash rent per square foot for new and renewal leases executed during the year $ 72.12 $ 65.43 $ 61.27
Weighted average annualized cash rent per square foot for previous leases $ 69.66 $ 61.46 $ 59.50
Increase in mark-to-market rent 3.5 % 6.5 % 3.0 %
(1) Beginning in 2024, the number of leases signed include "Early Renewals" which are leases signed over two years prior to the lease expiration. Amounts for number of leases signed, total square feet, leasing commission costs per square foot and tenant improvement costs per square foot have been adjusted to include the impact of early renewals for the twelve months ended December 31, 2023 and December 31, 2022 .
The following tables set forth a summary schedule of expirations for leases in place as of December 31, 2024 plus available space for each of the ten calendar years beginning with the year ended December 31, 2025 at the office and retail properties in our commercial portfolio. The information set forth in the table assumes that tenants exercise no renewal options and/or all early termination rights.
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Office and Retail Portfolio
Year of Lease Expiration Number of Leases Expiring (1)
Rentable Square Feet Expiring (2)
Percent of Portfolio Rentable Square Feet Expiring Annualized Rent (3)
Percent of Annualized Rent Annualized Rent Per Rentable Square Foot
Available — 592,749 6.9 % $ — — % $ —
Signed leases not commenced 30 418,308 4.9 % — — % —
Fourth quarter 2024 (4)
12 62,705 0.7 % 3,815,250 0.7 % 60.84
2025 71 561,379 6.5 % 38,059,602 7.0 % 67.80
2026 74 703,062 8.2 % 43,294,762 8.0 % 61.58
2027 88 698,520 8.1 % 47,545,063 8.7 % 68.07
2028 61 860,478 10.0 % 51,645,522 9.5 % 60.02
2029 63 790,481 9.2 % 67,843,206 12.5 % 85.83
2030 54 768,868 8.9 % 56,995,847 10.5 % 74.13
2031 27 205,241 2.4 % 22,456,781 4.1 % 109.42
2032 29 365,291 4.2 % 27,356,096 5.0 % 74.89
2033 33 302,642 3.5 % 22,596,775 4.2 % 74.67
2034 22 331,909 3.9 % 24,662,688 4.5 % 74.31
Thereafter 46 1,954,651 22.6 % 137,691,596 25.3 % 70.44
Total 610 8,616,284 100.0 % $ 543,963,188 100.0 % $ 71.52
Manhattan Office Properties (5)
Year of Lease Expiration Number of Leases Expiring (1)
Rentable Square Feet Expiring (2)
Percent of Portfolio Rentable Square Feet Expiring Annualized Rent (3)
Percent of Annualized Rent Annualized Rent Per Rentable Square Foot
Available — 476,851 6.3 % $ — — % $ —
Signed leases not commenced 23 385,303 5.1 % — — %
Fourth quarter 2024 (4)
12 62,705 0.8 % 3,815,250 0.9 % 60.84
2025 64 527,068 7.0 % 35,958,524 8.2 % 68.22
2026 64 602,635 8.0 % 37,033,613 8.5 % 61.45
2027 77 615,168 8.1 % 37,904,393 8.7 % 61.62
2028 55 840,106 11.1 % 49,175,905 11.3 % 58.54
2029 49 643,455 8.5 % 42,161,109 9.7 % 65.52
2030 39 662,664 8.8 % 43,478,449 10.0 % 65.61
2031 17 122,021 1.6 % 8,840,245 2.0 % 72.45
2032 22 326,723 4.3 % 24,101,729 5.5 % 73.77
2033 18 194,949 2.6 % 12,324,950 2.8 % 63.22
2034 16 307,701 4.1 % 21,263,418 4.9 % 69.10
Thereafter 33 1,800,220 23.7 % 119,811,284 27.5 % 66.55
Total 489 7,567,569 100.0 % $ 435,868,869 100.0 % $ 65.00
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Greater New York Metropolitan Area Office Properties
Year of Lease Expiration Number of Leases Expiring (1)
Rentable Square Feet Expiring (2)
Percent of Portfolio Rentable Square Feet Expiring Annualized Rent (3)
Percent of Annualized Rent Annualized Rent Per Rentable Square Foot
Available — 70,732 25.1 % $ — — % $ —
Signed leases not commenced 1 4,910 1.6 % — — % —
Fourth quarter 2024 (4)
— — — % — — % —
2025 3 16,474 5.8 % 855,995 7.3 % 51.96
2026 1 23,268 8.2 % 1,418,307 12.1 % 60.96
2027 4 21,546 7.6 % 1,214,965 10.4 % 56.39
2028 2 11,480 4.1 % 647,970 5.5 % 56.44
2029 2 12,183 4.3 % 703,884 6.0 % 57.78
2030 3 29,062 10.3 % 1,787,898 15.2 % 61.52
2031 1 15,030 5.4 % 820,187 7.0 % 54.57
2032 (6)
2 7,281 2.6 % 430,652 3.7 % 59.15
2033 1 63,173 22.4 % 3,480,347 29.7 % 55.09
2034 — — — % — — % —
Thereafter 1 7,137 2.6 % 367,556 3.1 % 51.50
Total 21 282,276 100.0 % $ 11,727,761 100.0 % $ 56.76
Retail Properties
Year of Lease Expiration Number of Leases Expiring (1)
Rentable Square Feet Expiring (2)
Percent of Portfolio Rentable Square Feet Expiring Annualized Rent (3)
Percent of Annualized Rent Annualized Rent Per Rentable Square Foot
Available — 45,166 5.9 % $ — — % $ —
Signed leases not commenced 6 28,095 3.7 % — — % —
Fourth quarter 2024 (4)
— — — % — — % —
2025 4 17,837 2.3 % 1,245,083 1.3 % 69.80
2026 9 77,159 10.1 % 4,842,842 5.0 % 62.76
2027 7 61,806 8.1 % 8,425,705 8.7 % 136.33
2028 4 8,892 1.2 % 1,821,647 1.9 % 204.86
2029 12 134,843 17.6 % 24,978,213 25.9 % 185.24
2030 12 77,142 10.0 % 11,729,500 12.2 % 152.05
2031 9 68,190 8.9 % 12,796,349 13.3 % 187.66
2032 5 31,287 4.1 % 2,823,715 2.9 % 90.25
2033 14 44,520 5.8 % 6,791,478 7.1 % 152.55
2034 6 24,208 3.1 % 3,399,270 3.5 % 140.42
Thereafter 12 147,294 19.2 % 17,512,756 18.2 % 118.90
Total 100 766,439 100.0 % $ 96,366,558 100.0 % $ 139.02
(1) If a tenant has more than one lease, whether or not at the same property, but with different expirations, the number of leases is calculated equal to the number of leases with different expirations.
(2) Excludes (i) 195,410 square feet of space across the Company's portfolio attributable to building management use and tenant amenities, (ii) 85,334 square feet of space attributable to the Company's Observatory, and (iii) square footage related to the Company's residential units.
(3) Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.
(4) Represents leases that are included in occupancy as of December 31, 2024 and expire on December 31, 2024 .
(5) Excludes (i) retail space in our Manhattan office properties and (ii) the Empire State Building broadcasting licenses and Observatory operations.
(6) Includes a telecom lease with no square footage.
Portfolio Transaction Activity
On March 28, 2024, we executed a buyout of the 10% non-controlling interest in two of our multifamily properties located at 561 10 th Avenue and 345 East 94 th Street in Manhattan for $14.2 million in cash and the assumption of $18.0 million of in-place debt and now own 100% of the ownership interests in these assets.
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In September and October 2024, we closed on the acquisition of a portfolio of retail properties on North 6 th Street in Williamsburg, Brooklyn for a purchase price of $195.0 million.
In September 2024, we entered into an agreement to acquire an additional retail asset on North 6 th Street in Williamsburg, Brooklyn for approximately $30.0 million. This acquisition is subject to customary closing conditions. The acquisition is anticipated to close in mid-2025.
Net Operating Income ("NOI") from our office, retail, multifamily, and Observatory operations were approximately 58%, 12%, 5%, and 25% of total NOI, respectively, after the effect of the 2024 acquisitions, annualized based on fourth quarter results, and the removal of First Stamford Place NOI. See Part II, ITEM 7, "Management's Discussion and Analysis of Financial Condition of Results of Operations — Net Operating Income" for the definition of NOI and a reconciliation to net income, the most directly comparable GAAP measure, to NOI.
Refer to "Financial Statements — Note 3 Acquisitions and Dispositions" in this Annual Report on Form 10-K.
ITEM 3. LEGAL PROCEEDINGS
Refer to “Financial Statements — Note 9 Commitments and Contingencies” in this Annual Report on Form 10-K for a description of any pending legal proceedings.
ITEM 4. MINE SAFETY DISCLOSURE
Not applicable.
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PART II