The Empire State Building’s owner reported an uptick in occupancy and leasing rates, throwing some cold water on the notion that commercial tenants are shunning older office towers.
“This whole narrative that only the AAA brand-new stuff will lease, we’ve said that’s wrong for several quarters,” said Empire State Realty Trust CEO Tony Malkin in an earnings call Thursday. “Look at the points on the board.”
The board shows that second-quarter occupancy rates in Empire State’s portfolio of mainly older Midtown office buildings rose to 86.8%, from 86.7% in the prior quarter, and the amount leased rose to 90.3%, from 89.4%. The landlord scored a big win last quarter when Flagstar Bank agreed to keep leasing the space held by Empire State’s second-largest tenant, Signature Bank.