Instacart downgraded as competition tightening grip on online grocery
Investing.com - New York City’s office market is showing resilience contrary to post-pandemic predictions, according to a recent analysis from Piper Sandler. According to InvestingPro data, this resilience is reflected in SL Green’s strong liquidity position, with a current ratio of 3.74x indicating robust financial flexibility.
The research firm highlighted that premium office space in NYC is commanding higher rents due to rising employment and decreased new supply. Piper Sandler reiterated its Overweight ratings on Boston Properties (NYSE:BXP) and SL Green Realty (NYSE:SLG), while maintaining a Neutral stance on Vornado Realty Trust (NYSE:VNO) based on valuation differences. SLG stands out with its impressive 29-year track record of consecutive dividend payments, currently offering a 5% yield. Discover more insights about SLG and other office REITs with InvestingPro’s comprehensive analysis tools and Pro Research Reports, covering 1,400+ US stocks.
Office jobs in NYC have reached 1.55 million, exceeding pre-pandemic levels of 1.5 million and up from 1.2 million before the global financial crisis, according to data shared during Piper Sandler’s annual NYC Office Outlook Webinar with Cushman & Wakefield. The firm noted that tenants are prioritizing locations with proximity to major transit hubs.
Financial services represent approximately 33% of office leasing activity, with technology, advertising, media, and information (TAMI) companies accounting for 16%. Legal firms comprise about 10% of the market but have nearly doubled their traditional market share as they relocate from older spaces to new or renovated buildings.
The analysis also pointed to approximately 20 million square feet of office-to-residential conversions either underway or proposed, which further strengthens the office market by reducing available supply. Piper Sandler noted that vacancy is generally concentrated in a few buildings per submarket, with users increasingly demanding amenities and layouts available only in modern or heavily renovated buildings.
In other recent news, SL Green Realty Corp reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of -$0.16, which was better than the forecasted -$0.21. However, the company’s revenue did not meet expectations, totaling $147.54 million compared to the anticipated $157.96 million. Despite the positive earnings surprise, SL Green’s stock saw a decline of 3.99% following the earnings release. Piper Sandler has reiterated its Overweight rating on SL Green, maintaining a price target of $72.00, citing the company’s focus on a strong real estate submarket. Jefferies also adjusted its price target for SL Green, raising it to $57.00 from $56.00 while keeping a Hold rating, reflecting revised financial projections. Additionally, Evercore ISI reiterated an Outperform rating with a price target of $74.00, following SL Green’s recent earnings report. These developments highlight the mixed analyst sentiment and financial performance surrounding SL Green Realty.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.