Empire State Realty Trust (ESRT) Citi’s Miami Global Property CEO Conference 2026 summary

Portfolio performance and leasing

• Achieved 93.6% leased commercial portfolio with over 1 million sq ft leased in 2025, marking four years of occupancy growth and positive rent spreads in NYC.

• Leasing pipeline supports further occupancy gains, with most deals expected to close in the first half of 2025.

• Focused on assembling larger blocks of space to attract higher-value tenants, with some short-term occupancy dips expected due to this strategy.

• Mark-to-market opportunities show double-digit, teens-type rent growth, with stabilized concessions and flat tenant improvement costs.

• Strong leasing interest in new acquisitions, with actionable demand and ongoing tenant discussions.

Capital allocation and acquisitions

• Closed $417 million in all-cash transactions for high-quality NYC assets and exited last suburban commercial asset, sharpening NYC focus.

• Acquired the Scholastic Building in SoHo, rebranded as 130 Mercer, with 70% occupancy and a path to 8% stabilized yield after lease-up.

• All asset classes compete for capital under a risk-adjusted return framework; recent SoHo acquisition was opportunistic.

• Over $1 billion in NYC acquisitions completed without recognizing taxable gain, improving cash flow prospects.

• Share buybacks remain a key capital allocation tool, with over $300 million repurchased to date.

Market trends and outlook

• NYC transaction volumes are up from 2024 but remain below 2019, with prices 20%-30% below peak.

• Institutional investors and lenders are returning to the market, signaling renewed confidence.

• Residential transaction volume is slow due to political uncertainty, while office and retail demand remains strong.

• Net effective rent growth expected to be positive in 2027, led by modernized, amenitized, energy-efficient properties.

• Fewer public companies expected in the property sector a year from now.