SL Green Realty Corp. SLG has been receiving a positive response from its existing tenants, as indicated by its recent leasing efforts. This office real estate investment trust (REIT) recently inked a fifteen-year, 144,418-square-foot renewal and expansion lease with Newmark & Company Real Estate, Inc. at 125 Park Avenue.

Since the beginning of the year through March 3, 2025, SL Green has signed Manhattan office leases totaling 455,008 square feet, while maintaining a current pipeline of approximately 975,000 square feet.

Per Steven Durels, executive vice president and director of Leasing and Real Property at SL Green, “This is another example of the continued strength of the midtown Manhattan office market, which is showing significant tenant demand for high quality space near Grand Central Terminal.”

125 Park Avenue, which is now 99% leased, is undergoing improvements such as the finalization of the new lobby design and restoration of the building’s entrance to its original design. The building, designated as a New York City landmark for its contribution to Midtown East, is strategically located across from Grand Central Terminal.

SLG: In a Nutshell

The high demand for premium office spaces is propelling SLG’s leasing momentum. In January 2025, SL Green signed a 92,663-square-foot expansion lease with IBM at One Madison Avenue. The 15-year lease covers the entire seventh floor of the building. The company signed 188 leases for around 3.6 million square feet in 2024.

SL Green has a mono-market strategy focus and an enviable footprint in the large and high-barrier-to-enter New York real estate market.

Shares of this Zacks Rank #2 (Buy) company have lost 1.8% over the past six months compared with the industry’s 1.8% decline.

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Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are Gladstone Land LAND and Sabra Healthcare REIT SBRA, each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Gladstone’s 2025 FFO per share is pegged at 54 cents, which indicates year-over-year growth of 14.9%.

The Zacks Consensus Estimate for Sabra’s full-year FFO per share is $1.49, which indicates an increase of 3.5% from the year-ago period.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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