WORLD PROPERTY CHANNEL ®

• BMW Renews 10-Year, 228,000-SF Contract
• DE Shaw Research Takes 75,000 SF on 7 Floors at Tower 45
• Law firm Debevoise & Plimpton Crafts 11-year, 33,000 SF Expansion
• Aeropostale Closes 15-Year Retail Deal for Over 17,500 SF.
• Manhattan's Total December Lease Closings of 2.25M SF Strongest Since July 2009

Tower 45, NYC

(NEW YORK CITY) -- SL Green Realty Corp. (NYSE:SLG) is riding into 2010 on the wave of a strong year-end leasing performance in 2009.

The New York City-based firm signed 48 leases totaling more than 560,000 square feet in its New York City portfolio. Leading the way was the 10-year, 228,000-square-foot early renewal of BMW of Manhattan, Inc. at 555 West 57th Street.
 
Also highlighting the fourth quarter were a 10-year, 75,000-square-foot new lease with DE Shaw Research, LLC covering seven floors at Tower 45, located at 120 W. 45th Street and an 11-year, 33,000 square foot expansion with Debevoise & Plimpton, LLP at 919 Third Avenue. Both transactions pre-lease spaces that were scheduled to become vacant in 2011.

Additionally, SL Green announced the completion of a 15-year retail lease with Aeropostale. The prominent teen apparel retailer is taking over 17,500 square feet at 1515 Broadway, combining ground floor space previously leased by Bank of America together with 2nd floor space previously occupied by MTV Studios.

There were 2.25 million square feet leased in Manhattan during the month of December according to Cushman & Wakefield, Inc. The last two times monthly leasing activity exceeded 2 million square feet was in July 2009 and June 2008.

Andrew Mathias

"When we recaptured the former MTV studio space from Viacom, we recognized this as a unique opportunity to create high visibility retail space and unlock tremendous rental value," says Andrew Mathias, President and Chief Investment Officer of SL Green.

Mathias says the transaction required the simultaneous buyout of Bank of America who controlled a long-term lease on the space.

"Our extensive efforts were well worth it, as this new lease with Aeropostale anchors the building's retail repositioning with additional opportunity for further value creation in the remaining space and signage."

"The New York City office market got off to a slow start in 2009," notes Steven Durels, Executive Vice President, Director of Leasing and Real Property for SL Green. "However, we definitely saw a steady improvement in transaction velocity as 2009 progressed. Direct vacancy has stabilized and quality sublease availability is shrinking."

Steven Durels

"Likewise, we are seeing an increasing number of in-place tenants with expirations beyond 2010 initiating longer-term renewal and expansion discussions," said Durels.

"It appears that many companies realize the market is beginning to bottom-out and are fearful that rents will rise before their leases expire. These early renewals like the BMW transaction permit us to substantially reduce our near-to-mid term portfolio rollover."

Overall, Durels reported that the Company signed 191 Manhattan leases covering more than 1,480,000 square feet for the full year.

In addition, the Company's Reckson division, which manages its suburban portfolio in Westchester and Connecticut, reported 29 deals topping 346,000 square feet. This included a renewal with Verizon for approximately 117,000 square feet and a new lease with Gerald Metals for approximately 23,250 square feet.  

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