Jaguar Market Digest – October 15

Sector Performance:

Today’s Movers:

One Story That Stood Out:

Vornado Realty Trust (VNO) – Evercore ISI analyst Steve Sakwa hosted a property tour & dinner with Vornado’s senior management where he visited their recently completed renovations at PENN1 & PENN2. According to the analyst, It’s clear from the tour and supported by numerous reports, that office demand in NYC remains robust despite the swirling macro conditions and the upcoming Mayor election. “To put it simply, 2025 may be one of the strongest years of leasing on record for the NYC office market and may turn out to be VNO’s best year of leasing as well considering its large master lease with NYU earlier this year at 770 Broadway.”

While the exact timing of lease commencements is always the hardest thing to peg for office companies, management reiterated their previous views that the FFO ramp would be “significant” in ’27 as a majority of the signed leases at PENN2 would be rent commencing by then and is one of the reasons that Evercore is nearly 10% above consensus for 2027. The leasing pipeline for PENN2 remains robust and management is quite confident in hitting its leasing goals for the year with rents that will clearly exceed its original budget.