Item 2. Properties
ITEM 2. PROPERTIES
Summary of Office, Retail, and Multifamily Portfolio
As of December 31, 2023, our office and retail portfolio was comprised of approximately 8.6 million rentable square feet of office space and 0.7 million rentable square feet of retail space and was approximately 86.3% occupied and 90.6% leased, yielding approximately $536.0 million of annualized rent. We have 11 office properties and our retail properties are comprised of retail space at the base of our New York City office and multifamily properties, and five standalone retail properties predominantly located in Manhattan. 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 86th and 102nd floor observatories at the Empire State Building, which are operated by our Observatory segment.
The tables below present an overview as of December 31, 2023.
Annualized
Rentable Rent per
Square Percent Percent Annualized Occupied Number of
Property Name Location or Sub-Market Feet (1)
Occupied (2)
Leased (3)
Rent (4)
Square Foot (5)
Leases (6)
Office - Manhattan
The Empire State Building Penn Station -Times Sq. South 2,713,783 84.6 % 91.8 % $ 149,146,291 $ 64.98 144
One Grand Central Place Grand Central 1,241,235 85.2 % 90.7 % 64,495,396 61.01 148
1400 Broadway (7)
Penn Station -Times Sq. South 917,281 100.0 % 100.0 % 51,543,523 56.19 20
111 West 33rd Street (8)
Penn Station -Times Sq. South 639,496 94.2 % 95.7 % 40,779,657 67.68 21
250 West 57th Street Columbus Circle - West Side 472,707 80.6 % 84.5 % 23,990,288 62.98 28
501 Seventh Avenue Penn Station -Times Sq. South 461,209 88.4 % 88.4 % 20,432,035 50.09 19
1359 Broadway Penn Station -Times Sq. South 456,004 83.5 % 91.4 % 22,376,656 58.75 32
1350 Broadway (9)
Penn Station -Times Sq. South 372,599 85.5 % 86.4 % 19,076,631 59.90 50
1333 Broadway Penn Station -Times Sq. South 296,349 84.4 % 94.4 % 14,545,148 58.12 13
Office - Manhattan 7,570,663 87.3 % 92.1 % 406,385,625 61.47 475
Office - Greater New York Metropolitan Area
First Stamford Place (10)
Stamford, CT 781,731 78.7 % 82.3 % 26,691,177 43.38 48
Metro Center Stamford, CT 281,510 70.9 % 70.9 % 10,914,848 54.71 20
Office - Greater New York Metropolitan Area 1,063,241 76.6 % 79.3 % 37,606,025 46.15 68
Total/Weighted Average Office Properties 8,633,904 86.0 % 90.5 % 443,991,650 59.79 543
Retail Properties
112 West 34th Street (8)
Penn Station -Times Sq. South 93,057 100.0 % 100.0 % 24,825,569 266.78 4
The Empire State Building Penn Station -Times Sq. South 90,670 71.9 % 76.4 % 7,032,389 107.93 10
One Grand Central Place Grand Central 68,733 99.4 % 99.4 % 8,977,805 131.41 12
1333 Broadway Penn Station -Times Sq. South 67,001 100.0 % 100.0 % 10,155,485 151.57 4
250 West 57th Street Columbus Circle - West Side 65,526 91.4 % 91.4 % 9,111,860 152.07 7
10 Union Square Union Square 58,006 91.9 % 91.9 % 8,181,304 153.49 10
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1542 Third Avenue Upper East Side 56,135 100.0 % 100.0 % 2,542,042 45.28 4
1010 Third Avenue Upper East Side 38,235 100.0 % 100.0 % 3,460,188 90.50 2
501 Seventh Avenue Penn Station -Times Sq. South 35,859 50.8 % 59.6 % 1,310,333 71.94 5
1350 Broadway (9)
Penn Station -Times Sq. South 30,710 77.8 % 77.8 % 5,962,833 249.70 5
1359 Broadway Penn Station -Times Sq. South 29,247 83.0 % 100.0 % 1,668,652 68.73 5
561 10th Avenue (11)
Hudson Yards 28,266 100.0 % 100.0 % 2,007,748 71.03 3
77 West 55th Street Midtown 25,388 100.0 % 100.0 % 1,978,407 77.93 3
1400 Broadway (7)
Penn Station -Times Sq. South 17,879 78.2 % 78.2 % 1,538,836 110.07 6
298 Mulberry Street (12)
NoHo 10,365 100.0 % 100.0 % 1,802,507 173.90 1
Williamsburg Retail (13)
Brooklyn 6,538 100.0 % 100.0 % 1,158,422 177.18 3
345 East 94th Street (14)
Upper East Side 3,700 100.0 % 100.0 % 263,134 71.12 1
Total/Weighted Average Retail Properties 725,315 90.4 % 92.1 % 91,977,514 140.27 85
Portfolio Total 9,359,219 86.3 % 90.6 % $ 535,969,164 $ 66.32 628
(1) Excludes (i) 189,148 square feet of space across the Company's portfolio attributable to building management use and tenant amenities and (ii) 83,190 square feet of space attributable to the Company's Observatory.
(2) Based on leases signed and commenced as of December 31, 2023.
(3) Includes occupied space plus leases signed but not commenced as of December 31, 2023.
(4) Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.
(5) Represents annualized rent under leases commenced as of December 31, 2023 divided by occupied square feet.
(6) 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.
(7) Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 40 years (expiring December 31, 2063).
(8) Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 54 years (expiring June 10, 2077).
(9) Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 27 years (expiring July 31, 2050).
(10) First Stamford Place consists of three buildings.
(11) Does not include the square footage related to the 417 residential units at this property.
(12) Does not include the square footage related to the 96 residential units at this property.
(13) Does not include the square footage related to the 6 residential units at this property.
(14) Does not include the square footage related to the 208 residential units at this property.
Tenant Diversification
As of December 31, 2023, our office and retail portfolios were leased to a diverse tenant base consisting of approximately 628 leases. Our tenants represent a broad array of industries as follows:
Diversification by Industry Percent (1)
Arts and entertainment 3.2 %
Broadcast 1.0 %
Consumer goods 15.8 %
Finance, insurance, real estate 16.9 %
Government entity 2.1 %
Healthcare 1.8 %
Legal services 5.2 %
Non-profit 4.2 %
Professional services (not including legal services) 9.2 %
Retail 18.2 %
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Technology, media and advertising 18.0 %
Others 4.4 %
Total 100.0 %
(1) Based on annualized rent.
The following table sets forth information regarding the 20 largest tenants in our commercial portfolio based on annualized rent as of December 31, 2023.
Weighted Percent of
Average Total Portfolio Percent of
Remaining Occupied Rentable Portfolio
Lease Lease Square Square Annualized Annualized
Tenant Property Expiration (1)
Term (2)
Feet (3)
Feet (4)
Rent (5)
Rent (6)
LinkedIn Empire State Building Aug. 2036 12.7 years 501,409 5.4 % $ 33,465,435 6.2 %
Flagstar Bank 1400 Broadway Aug. 2039 15.7 years 313,109 3.3 % 18,285,046 3.4 %
Centric Brands Inc. Empire State Building Oct. 2028 4.8 years 221,365 2.4 % 11,952,833 2.2 %
PVH Corp. 501 Seventh Avenue Oct. 2028 4.8 years 237,281 2.5 % 11,519,383 2.1 %
Sephora 112 West 34th Street Jan. 2029 5.1 years 11,334 0.1 % 10,533,585 2.0 %
Target 112 West 34th St., 10 Union Sq. Jan. 2038 14.1 years 81,340 0.9 % 9,341,224 1.7 %
Coty Inc. Empire State Building Jan. 2030 6.1 years 156,187 1.7 % 8,497,458 1.6 %
Macy's 111 West 33rd Street May 2030 6.4 years 131,117 1.4 % 8,451,562 1.6 %
Urban Outfitters 1333 Broadway Sept. 2029 5.8 years 56,730 0.6 % 8,185,595 1.5 %
Li & Fung 1359 Broadway, ESB Oct. 2027 - Oct. 2028 4.5 years 149,061 1.6 % 7,954,806 1.5 %
Footlocker 112 West 34th Street Sept. 2031 7.8 years 34,192 0.4 % 7,745,828 1.4 %
Federal Deposit Insurance Corp. Empire State Building Dec. 2025 2.0 years 119,226 1.3 % 7,578,004 1.4 %
HNTB Corporation Empire State Building Feb. 2029 5.2 years 105,143 1.1 % 7,000,733 1.3 %
Institutional Capital Network, Inc. One Grand Central Place Feb. 2024 - Oct. 2035 10.6 years 94,331 1.0 % 6,351,680 1.2 %
The Michael J. Fox Foundation 111 West 33rd Street Nov. 2029 5.9 years 86,492 0.9 % 6,267,495 1.2 %
Shutterstock Empire State Building Apr. 2029 5.3 years 104,386 1.1 % 6,096,096 1.1 %
Fragomen 1400 Broadway Feb. 2035 11.2 years 107,680 1.2 % 5,959,656 1.1 %
Burlington Merchandising Corp. 1400 Broadway Jan. 2038 14.1 years 102,898 1.1 % 5,932,832 1.1 %
ASCAP 250 West 57th Street Aug. 2034 10.7 years 87,943 0.9 % 5,384,628 1.0 %
Duane Reade Empire State Building, 1350 Broadway May 2025 - Sept. 2027 2.5 years 39,142 0.4 % 4,941,165 0.9 %
Total 2,740,366 29.3 % $ 191,445,044 35.5 %
(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 weighted average remaining lease term, based on annualized rent.
(3) Based on leases signed and commenced as of December 31, 2023.
(4) Represents the percentage of rentable square feet of the Company's office and retail portfolios in the aggregate.
(5) Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.
(6) Represents the percentage of annualized rent of the Company's office and retail portfolios in the aggregate.
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 (decrease) in mark-to-market rent.
Year Ended December 31,
2023 2022 2021
New and renewal leases entered into during the year (square feet) 950,746 1,118,579 1,005,630
Weighted average annualized cash rent per square foot for new and renewal leases executed during the year $ 65.30 $ 59.42 $ 57.55
Weighted average annualized cash rent per square foot for previous leases $ 61.25 $ 58.58 $ 58.04
Increase (decrease) in mark-to-market rent 6.6 % 1.4 % (0.8) %
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The following tables set forth a summary schedule of expirations for leases in place as of December 31, 2023 plus available space for each of the ten calendar years beginning with the year ended December 31, 2023 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 all early termination rights.
Office and Retail Portfolio
Percent of
Rentable Portfolio Annualized
Number Square Rentable Percent of Rent Per
of Leases Feet Square Feet Annualized Annualized Rentable
Year of Lease Expiration Expiring (1)
Expiring (2)
Expiring Rent (3)
Rent Square Foot
Available — 875,777 9.4 % $ — — % $ —
Signed leases not commenced 28 402,268 4.3 % — — % —
Fourth quarter 2023 (4)
15 143,627 1.5 % 7,522,786 1.4 % 52.38
2024 89 509,671 5.4 % 30,075,202 5.6 % 59.01
2025 85 594,946 6.4 % 40,363,625 7.5 % 67.84
2026 72 628,943 6.7 % 37,384,704 7.0 % 59.44
2027 87 713,569 7.6 % 47,192,095 8.8 % 66.14
2028 63 945,077 10.1 % 52,486,474 9.8 % 55.54
2029 50 981,952 10.5 % 73,521,837 13.7 % 74.87
2030 38 745,546 8.0 % 50,024,340 9.3 % 67.10
2031 23 174,491 1.9 % 20,214,026 3.8 % 115.85
2032 29 368,694 3.9 % 26,223,606 4.9 % 71.13
2033 29 329,711 3.5 % 21,332,708 4.0 % 64.70
Thereafter 48 1,944,947 20.8 % 129,627,759 24.2 % 66.65
Total 656 9,359,219 100.0 % $ 535,969,162 100.0 % $ 66.32
Manhattan Office Properties (5)
Percent of
Rentable Portfolio Annualized
Number Square Rentable Percent of Rent Per
of Leases Feet Square Feet Annualized Annualized Rentable
Year of Lease Expiration Expiring (1)
Expiring (2)
Expiring Rent (3)
Rent Square Foot
Available — 597,862 7.9 % $ — — % $ —
Signed leases not commenced 20 362,213 4.8 % — — % —
Fourth quarter 2023 (4)
12 124,643 1.6 % 7,044,490 1.7 % 56.52
2024 76 431,339 5.7 % 25,204,397 6.2 % 58.43
2025 67 495,292 6.5 % 32,205,906 7.9 % 65.02
2026 57 485,929 6.4 % 29,511,170 7.3 % 60.73
2027 71 600,450 7.9 % 36,782,006 9.1 % 61.26
2028 47 854,943 11.3 % 47,465,773 11.7 % 55.52
2029 35 738,291 9.8 % 44,821,337 11.0 % 60.71
2030 27 599,150 7.9 % 37,243,747 9.2 % 62.16
2031 12 86,541 1.1 % 6,076,449 1.5 % 70.21
2032 21 334,698 4.4 % 23,105,190 5.7 % 69.03
2033 15 141,599 1.9 % 8,587,282 2.1 % 60.65
Thereafter 35 1,717,713 22.8 % 108,337,878 26.6 % 63.07
Total 495 7,570,663 100.0 % $ 406,385,625 100.0 % $ 61.47
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Greater New York Metropolitan Area Office Properties
Percent of
Rentable Portfolio Annualized
Number Square Rentable Percent of Rent Per
of Leases Feet Square Feet Annualized Annualized Rentable
Year of Lease Expiration Expiring (1)
Expiring (2)
Expiring Rent (3)
Rent Square Foot
Available — 220,593 20.7 % $ — — % $ —
Signed leases not commenced 3 27,802 2.5 % — — % —
Fourth quarter 2023 (4)
2 2,540 0.2 % 63,701 0.2 % 25.08
2024 7 52,728 5.0 % 2,222,975 5.9 % 42.16
2025 13 76,903 7.2 % 3,597,773 9.6 % 46.78
2026 8 71,784 6.8 % 3,508,404 9.3 % 48.87
2027 10 58,730 5.5 % 2,801,695 7.5 % 47.70
2028 11 84,915 8.0 % 3,735,230 9.9 % 43.99
2029 5 128,271 12.1 % 5,907,668 15.7 % 46.06
2030 4 78,033 7.3 % 3,562,425 9.5 % 45.65
2031 2 16,560 1.6 % 843,885 2.2 % 50.96
2032 (6)
1 — — % 6,180 — % —
2033 3 151,754 14.3 % 7,494,005 19.9 % 49.38
Thereafter 2 92,628 8.8 % 3,862,084 10.3 % 41.69
Total 71 1,063,241 100.0 % $ 37,606,025 100.0 % $ 46.15
Retail Properties
Percent of
Rentable Portfolio Annualized
Number Square Rentable Percent of Rent Per
of Leases Feet Square Feet Annualized Annualized Rentable
Year of Lease Expiration Expiring (1)
Expiring (2)
Expiring Rent (3)
Rent Square Foot
Available — 57,322 7.9 % $ — — % $ —
Signed leases not commenced 5 12,253 1.7 % — — % —
Fourth quarter 2023 (4)
1 16,444 2.3 % 414,595 0.5 % 25.21
2024 6 25,604 3.5 % 2,647,830 2.9 % 103.41
2025 5 22,751 3.1 % 4,559,946 5.0 % 200.43
2026 7 71,230 9.8 % 4,365,130 4.7 % 61.28
2027 6 54,389 7.5 % 7,608,394 8.3 % 139.89
2028 5 5,219 0.7 % 1,285,471 1.4 % 246.31
2029 10 115,390 15.9 % 22,792,832 24.8 % 197.53
2030 7 68,363 9.4 % 9,218,168 10.0 % 134.84
2031 9 71,390 9.8 % 13,293,692 14.5 % 186.21
2032 7 33,996 4.7 % 3,112,236 3.4 % 91.55
2033 11 36,358 5.0 % 5,251,421 5.7 % 144.44
Thereafter 11 134,606 18.7 % 17,427,798 18.8 % 129.47
Total 90 725,315 100.0 % $ 91,977,514 100.0 % $ 140.27
(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) 189,148 rentable square feet across the Company's portfolio attributable to building management use and tenant amenities and (ii)
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83,190 square feet of space attributable to the Company's Observatory.
(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, 2023 and expire on December 31, 2023.
(5) Excludes (i) retail space in our Manhattan office properties and (ii) the Empire State Building broadcasting licenses and Observatory operations.
(6) Represents a telecom lease with no square footage.
Portfolio Transaction Activity
On February 1, 2023, we closed on the sale of 69-97 and 103-107 Main Street in Westport, Connecticut at a gross asset valuation of $40.0 million. Refer to "Financial Statements - Note 11 Related Party Transactions" in this Annual Report on Form 10-K.
On April 5, 2023, we closed on the sale of 500 Mamaroneck Avenue in Harrison, New York at a gross asset valuation of $53.0 million.
On September 14, 2023, we closed on the acquisition of a Williamsburg retail property located on the corner of North 6 th Street and Wythe Avenue in Brooklyn, New York, for a purchase price of $26.4 million.
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