Vornado Posts Higher FFO Despite Q3 Net Loss
Vornado Realty Trust reported higher third-quarter 2026 funds from operations alongside a net loss driven by its office portfolio results.
Updated on Nov. 3, 2026 in Commercial
Vornado Realty Trust reported $126.6 million in third-quarter 2026 funds from operations, up from $114.5 million a year earlier, while posting a $47.1 million net loss. The company also leased 1.6 million square feet in the first nine months of 2026, including a 1.05 million-square-foot lease with Citadel at 350 Park Avenue.
Why it matters
The results point to continued demand for Manhattan office space, with a large lease and new leasing activity supporting the company's operating income. For New York City's commercial real estate market, the figures offer a read on office leasing conditions in a central business district.
Vornado's third-quarter 2026 funds from operations rose 14 percent from $114.5 million a year earlier, and the company leased 1.6 million square feet in the first nine months of 2026 at a Manhattan office average starting rent of $113 per square foot. The filing does not address how the net loss of $47.1 million will affect future returns.
The players
Vornado Realty Trust
Vornado Realty Trust is a real estate investment trust that owns and operates a large portfolio of office and retail properties, concentrated in Manhattan.
The details
Vornado executed 30 office deals totaling 489,000 square feet in the third quarter, including 10 deals at Penn 1 totaling 248,000 square feet at average starting rents of $123 per square foot. The company also closed a $3.3 billion construction loan for 350 Park Avenue, where Citadel signed a 1.05 million-square-foot lease.
Timeline
- September 30, 2026: Third-quarter 2026 period ended.
- November 3, 2026: Vornado reported third-quarter 2026 earnings on its earnings call.
- 2026: Company expects to lease 2.4 million square feet of New York office space this year.
Market Context
Vornado's leasing pace and rent levels reflect the ongoing recovery in Manhattan's office market, where rents and deal sizes have been tracked as indicators of demand for Midtown towers. The company's 350 Park Avenue development extends that trend by anchoring new supply with a long-term tenant.
For New York City office workers and tenants, continued leasing at higher starting rents can translate into rising occupancy costs in Midtown towers. Landlords with strong leasing momentum may maintain pricing power in negotiations over renewals and new space.
The takeaway
Commercial tenants negotiating in Manhattan should weigh rising starting rents against the availability of large blocks of space when planning lease terms. Watching occupancy and rent trends in Midtown can help set realistic expectations for renewals and relocations.
Further reading
For broader context on deal activity, see Commercial real estate coverage for New York City.
Source note: This article includes information reported by Commercial Observer.
