Articles of the week ending April 25th
Vornado catches break with less-than-expected ground rent for Penn 1 tower
By Andria Cheng, CoStar News
Vornado Realty Trust secured a significantly lower-than-expected annual ground rent of $15 million for its Penn 1 tower, easing financial pressure amid a challenging office market.
Nonprofits, Education Tenants Offer Hope For Brooklyn Office Revival
By Sasha Jones, Bisnow
Brooklyn’s office market is showing signs of revival, driven by demand from nonprofits and educational tenants that are activating spaces with community-focused uses, despite lingering competition from Manhattan.
News _ Korean lenders take over Manhattan office tower through foreclosure auction
By Andria Cheng, CoStar News
A consortium of Korean lenders took control of Manhattan’s 285 Madison Avenue through a foreclosure auction after owner RFR Realty defaulted twice, seizing the opportunity amid a recovering office market and declining property valuations.
Federal Lease Terminations Drive 8M SF Of Office Occupancy Losses
By Maddy McCarty, Bisnow
Federal lease terminations and conversions drove over 8 million square feet of office occupancy losses in Q1 2025, reversing late 2024’s positive absorption trend despite strong leasing activity and declining new office supply.
DOJ Signs Biggest Lease Under New Trump Administration, Shrinking Footprint By 30%
By Emily Wishingrad, Bisnow
The DOJ signed a 403K SF lease renewal at Two Constitution Square in D.C.—the largest federal lease under Trump’s second term—marking a 30% footprint reduction as part of the administration’s broader push to downsize federal office space.
CUNY acquires 578 beds at 569 Lexington Ave.
By Julianne Cuba, Crain’s New York Business
CUNY purchased a former Midtown hotel for $85.7M, adding 578 dorm beds for students in a building previously operated by Found Study as dorm-style housing.
BlackRock reduces stake in Empire State Realty Trust
By Aaron Elstein, Crain’s New York Business
BlackRock reduced its stake in Empire State Realty Trust from 10.1% to 8.9%, amid declining tourism at the Empire State Building observatory and a 33% drop in the company’s stock value since January.
More Healthy Office Buildings Land in Special Servicing
By TRD Staff, The Real Deal
Even well-occupied NYC office buildings are landing in special servicing due to falling valuations, higher interest rates, and refinancing challenges despite steady rental income.