The Future of 350 Park and Going "All In" On the Office Market | The Real Deal's NYC Forum 2026

Why It Matters

The resurgence of high‑grade office space and AI‑driven leasing signals strong revenue prospects for landlords, while political cooperation will be crucial to unlocking new development potential in Manhattan.

Key Takeaways

• Class A office demand surges, vacancy under 10% in NYC.
• 350 Park demolition underway; joint venture decision due July.
• AI-driven tech firms expanding NYC footprint, boosting leasing activity.
• Class B assets see rent growth, attracting renovation investments.
• Political tensions with mayor may affect projects; collaboration urged.

Summary

The Real Deal’s NYC Forum 2026 panel turned its attention to the office market, highlighting a dramatic shift from the post‑COVID gloom to a burgeoning “boom loop.” Speakers, including CBRE’s Steven Seagull, Newark’s Liz Hart, and Vornado’s Glenn Weiss, centered the conversation on the high‑profile 350 Park development and the broader health of Class A office space in Manhattan.

Data points underscored the optimism: vacancy in trophy‑class buildings remains in the low single digits, with rents approaching $100 per square foot for premium space and even higher for ultra‑premium parcels. Class B and B+ assets are catching the upside, posting rents in the $70‑$80 range and prompting owners to invest in renovations. AI‑focused firms are leasing at a faster pace than last year, driving demand across sectors from finance to law, while the demolition of 350 Park has begun and a joint‑venture decision is slated for mid‑July.

Panelists offered vivid commentary. Weiss warned that political posturing—exemplified by the mayor’s recent video—could jeopardize projects unless leaders cooperate. Hart highlighted the influx of San‑Francisco tech companies and AI startups seeking a dual‑city presence, noting that physical office remains essential for growth. Seagull cited recent record‑setting leases, while a participant recounted a $32 million loss from assuming all transactions could go digital, reinforcing the continued value of human‑driven brokerage.

The implications are clear: New York’s office market is now a landlord’s market, with limited new supply and robust tenant demand supporting rent growth and reduced concessions. Investors should eye Class B upgrades and AI‑centric tenants as growth engines, while developers must navigate political dynamics to keep flagship projects like 350 Park on track.

Original Description

Leaders from CBRE, Newmark and Vornado are "all in" on NYC's office market.

At The Real Deal's New York City Forum 2026, CBRE's Stephen Siegel, Newmark's Elizabeth Hart and Glen Weiss of Vornado Realty Trust joined TRD Editor-in-Chief Stuart Elliott to break down the market's rebound, Al's impact, Class B's comeback and more - including the potential fallout of Mayor Zohran Mamdani's viral pied-à-terre tax video which singled out Ken Griffin's Billionaire's Row condo.

Weiss defended Steve Roth's fiery comments from Vornado's earnings call, where Roth slammed politicians pushing "tax the rich" policies and called the mayor's video "dangerous" and

"irresponsible." CBRE chairman Stephen Siegel also weighed in, blasting Mamdani's rhetoric and warning about anti-wealth sentiment in New York politics.

But, for all the bad blood, Weiss revealed that 350 Park is still "ready to roll."

Watch the full video to learn what these execs had to say about the office market and Mamdani, and read TRD's coverage at https://therealdeal.com/new-york/2026/05/06/vornado-exec-says-they-are-

ready-to-roll-on-350-park/

This conversation was made possible by Quality Building Services.

00:00-01:34 - TRD Editor-in-Chief Stuart Elliot introduces the panel

01:35-05:14 - Panelists respond to Mayor Mamdani's pied-à-terre tax video calling out Ken Griffin and defend Vornado exec Steve Roth's response

05:15-05:40 - The future and present of 350 Park Avenue

05:41-08:06 - Why companies are planting flags in South Florida and New York

08:07-10:55 - Rising rents across office classes

10:56-15:46 - How Al is (and isn't) impacting the office market

15:47-18:24 - The booms and busts of real estate competition|

18:25-20:45 - The next wave of office exoduses

20:46-23:26 - How New York City stacks up against other office markets

23:27-25:37 - Investment sales market vs. the office brokerage market

25:38-27:50 - "Ford to City: Drop Dead" and other lessons from the past