SL Green Realty, Manhattan’s largest commercial office landlord, reported a first-quarter 2026 net loss of $84.4 million — and used the same earnings report to argue that the city’s office market has decisively turned in its favor.

In results released April 15, the company posted a net loss of $1.20 per share, wider than the $21.1 million loss a year earlier, and funds from operations (FFO) of $64.6 million, or 84 cents per share. But the figure investors and brokers focused on was leasing volume: SL Green signed 51 Manhattan office leases totaling 929,264 square feet — what Chief Executive Marc Holliday called the single biggest first quarter in the firm’s 28-year history.

A record leasing quarter

The 929,264 square feet were signed at an average starting rent of roughly $105 per square foot, with what the company described as positive mark-to-market spreads — meaning new rents came in higher than the expiring ones on the same space, a reversal from the depths of the pandemic-era office slump.

Two leases anchored the quarter. The legal-AI company Harvey AI took 185,326 square feet at One Madison Avenue, SL Green’s redeveloped tower near Madison Square Park, and the firm Clay took 163,095 square feet at 11 Madison Avenue. Both deals fit a broader pattern in the 2025–2026 Manhattan recovery: artificial-intelligence and financial tenants competing for the newest, most amenitized towers while older, commodity office space continues to languish.

SL Green said Manhattan same-store office occupancy stood at 94.4% including signed-but-not-yet-commenced leases, and reaffirmed a target of 95.0% by the end of 2026.

Refinancings and sales

Alongside the leasing numbers, the company laid out a series of capital-markets moves. It completed a $1.65 billion refinancing of One Madison Avenue, led by Wells Fargo and Goldman Sachs, and refinanced its corporate credit facility. SL Green also agreed to sell the residential and retail components of 7 Dey Street for $222.6 million and sold 690 Madison Avenue for $54.5 million.

Those transactions matter for a company whose loss is driven less by operations than by the heavy interest costs and non-cash write-downs that hang over the entire office sector. By terming out debt on a flagship asset like One Madison — and pulling cash out of non-core residential and retail positions — SL Green is buying time and liquidity while it waits for higher leased rents to convert into reported earnings.

The company reaffirmed full-year 2026 FFO guidance of $4.40 to $4.70 per share, with a midpoint of $4.55, and set a 2026 common dividend of $2.47 per share. In March, it promoted Harrison Sitomer to president.

The wider Manhattan office picture

SL Green’s report is one of the clearest reads on the Manhattan office market because of its scale — the company owns or has interests in a large share of the borough’s prime towers. A record first-quarter leasing haul, positive rent spreads and rising occupancy all point to a market that has moved past the bottom for top-tier “Class A” space, even as a glut of older buildings continues to be sold at discounts, refinanced under duress or converted to housing.

The split-screen is the defining feature of the post-pandemic office economy: a leasing boom at the high end, distress at the low end, and a landlord like SL Green reporting both a record quarter and a sizable loss in the same breath. The loss reflects the cost of carrying a large portfolio through a high-rate period; the leasing reflects where demand is going as it returns.

For now, the company is betting that the leasing momentum it booked in the first quarter will show up in FFO later in the year and into 2027, as free-rent periods burn off and newly signed rents start flowing through the income statement.

Verification

Frequently Asked Questions

How did SL Green perform in Q1 2026?
SL Green reported a net loss of $84.4 million, or $1.20 per share, and funds from operations (FFO) of $64.6 million, or 84 cents per share. The headline loss widened from a year earlier, but the company emphasized record leasing volume and a string of refinancings as evidence the Manhattan office market is tightening in its favor.
How much office space did SL Green lease?
The company signed 51 Manhattan office leases totaling 929,264 square feet at an average starting rent of about $105 per square foot — what CEO Marc Holliday called the single biggest first quarter in the company's 28-year history.
What were the largest leases?
Two of the biggest were Harvey AI taking 185,326 square feet at One Madison Avenue and the firm Clay taking 163,095 square feet at 11 Madison Avenue — both signs of AI and finance tenants expanding in prime Manhattan towers.
Did SL Green sell or refinance any buildings?
Yes. SL Green completed a $1.65 billion refinancing of One Madison Avenue led by Wells Fargo and Goldman Sachs, refinanced its corporate credit facility, and agreed to sell the residential and retail portions of 7 Dey Street for $222.6 million, among other capital moves.