Steven Roth on market outlook
From Vornado Realty Trust Q2 2025 Earnings Call | Q2 2025 Results | Q2 2025 Investor Conference Call · · E for Earnings
“This is the very definition of a landlord's market. With tight availability and class A better buildings in Manhattan and no new supply coming for the rest of the decade, I believe the next few years have the potential to be one of the strongest periods of rental growth we've seen in decades.”
On , Steven Roth, Chairman of the Board & Chief Executive Officer at VORNADO REALTY TRUST, spoke about market outlook during Vornado Realty Trust Q2 2025 Earnings Call | Q2 2025 Results | Q2 2025 Investor Conference Call on E for Earnings.
About Steven Roth
On Vornado Realty Trust's second quarter 2025 earnings call, Steven Roth described the current Manhattan office market as "the very definition of a landlord's market," citing tight availability, no new supply expected for the rest of the decade, and what he called the potential for one of the strongest periods of rental growth in decades. He stated that replacement costs for a Class A tower in Manhattan have risen to approximately $2,500 per square foot, and with interest rates at six percent or higher, rents in the 200s are now common. Roth said that every $10 per square foot increase in rents yields $50 million to the bottom line, and that when market rents reach $150 per square foot on five million square feet, that would represent an increment of $250 million per year. He also noted that Vornado's stock had increased 42% over the trailing 12 months, nearly double the S&P 500, and expressed pride in the company's balance sheet improvements, including reducing its leverage ratio by 1.4 turns. Roth discussed the redevelopment of 350 Park Avenue with Citadel as anchor tenant and Ken Griffin as a 60% partner, stating that city planning commission approval had been received and final city council approval was expected in the fall. He expressed condolences regarding shootings at 345 Park Avenue. Roth also said that two assets "may be on the for sale list for the right deal at the right time," adding that "nothing is sacred," and that the company's "sole mission" is to increase its stock price. In earlier remarks, Roth described New York City's vibrancy as driven by its indigenous population and global visitors, and predicted continued growth for New York and Washington real estate due to incoming international investment, particularly from China. He also recounted the acquisition of the Virgin block at 1540 Broadway, where Vornado and Related bought the entire U.S. Virgin record store chain to gain control of a below-market lease.