Vornado Declares Manhattan Office Recovery While Warning Politics Could Derail It

For years, the office conversation has been dominated by decline. Vacancy rates, downsizing, remote work, distressed loans, and the supposed death of the central business district became the defining narrative for commercial real estate. But during Vornado Realty Trust’s latest earnings call, chairman Steve Roth made something else clear: some of the biggest office landlords in the country now believe the downturn is over for the buildings that matter most.

The company’s first-quarter earnings missed analyst expectations, but that barely registered during a call that evolved into a sweeping argument about the future of New York office real estate, the economics of development, the role of AI in cities, and the increasingly tense relationship between wealthy investors and progressive politics.

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RSK: Many say the office market is beyond repair but Tier 1 and Tier 2 buildings are leasing up quickly.