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Vornado signals $350/sq ft as 350 Park Avenue targets Class A office demand
During its second-quarter earnings call, Vornado confirmed the $350 asking rent level for 350 Park Avenue while reporting FFO of $144.0 million and quarterly revenue of $462.2 million.
Vornado Realty Trust said it could start asking as much as $350 per square foot for 350 Park Avenue, a new Class A office development in the Penn District. The company, according to Commercial Observer, confirmed the $350 level during its second-quarter 2026 earnings call after an investor asked for confirmation of the implied asking rent.
Vornado chairman Steven Roth linked the target rent to the scarcity of new supply and to high construction costs and interest rates, arguing that would help keep demand for well-located older buildings strong. He also tied the strategy to why Vornado bought Park Avenue Plaza, noting the market conditions for both new and existing office space.
The project is being developed with Citadel and Rudin, and Vornado began development at the end of the fourth quarter of 2025, targeting 1.85 million square feet of office space. On the same call, Vornado reported net income of $16.4 million in the second quarter of 2026, compared with $743.8 million a year earlier, with funds from operations reaching $144.0 million versus $120.9 million year-over-year.
Vornado also reported revenue of $462.2 million for the three months ending June 30, up from $441.4 million in the second quarter of 2025. The company said it leased about 348,000 square feet of office space and 61,000 square feet of retail during the quarter, leaving its portfolio 90.8 percent occupied overall, with office assets at 92.2 percent occupied and retail at 77.8 percent, and Roth said there were 67,000 square feet of lease deals pending signature in the Penn District.