New York & Tri-State + Midtown New York | June 19, 2023

Fitch to Downgrade Manhattan Office Towers, Including 280 Park

Fitch Ratings has warned of a potential downgrade for 280 Park Ave., a Class A office tower owned by SL Green Realty and Vornado Realty Trust. This follows a trend of scrutiny for both older and newer office buildings.

The Midtown office building has seen stable occupancy rates, but the upcoming vacancies, including the possible departure of six tenants, including BlueMountain Capital Management and Cohen & Steers, raise concerns.

While SL Green and Vornado recently secured lease renewals, Fitch maintains a negative outlook due to the tenant departures. The building’s floating-rate mortgage is set to mature in September 2024. Fitch has also assigned negative outlooks to other buildings in Lower Manhattan and Midtown.

Connect

Inside The Story

About Emily Fu

Emily Fu is Content Director of Connect Commercial Real Estate, where she covers the east coast markets, including New York, Boston & New England, and DC & Mid-Atlantic markets. She produces daily news stories as well as longer-form content, ranging from Q&As to thought-leadership pieces. She also writes feature stories for Connect Money. With previous stints at Reuters, Seeking Alpha, and Commercial Observer, Emily has covered the finance side of the commercial real estate industry, technology, media, telecom (TMT), and fashion. She attended the Columbia Graduate School of Journalism and currently resides in Manhattan.

Order Reprints