The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Manus Ebbecke - Evercore - Analyst
: Great. Good morning, everyone. Thanks for taking the question. The first one, I wanted to just touch on high-level on capital uses and sources. With
the stock obviously trading where it is, what do you -- what should we expect kind of like going forward in '25, and maybe see more of transactions
like 900 Third Avenue or just maybe help us think through on like a more broader high-level what you kind of like are aiming for here?
Question: Manus Ebbecke - Evercore - Analyst
: Thanks. I think that makes sense. And then maybe one question, was interesting to hear that you talked about the 32,000 square feet law firm that
signed for the former Google floors at One Market Plaza. Could you maybe, to the extent you can share, talk about the rents, maybe the concessions
or the timing for that specific tenant to decide to go to one marketplace, but congrats it's a good win for the building?
Question: Manus Ebbecke - Evercore - Analyst
: Great. That's all from me. Thank you.
Question: Blaine Heck - Wells Fargo - Analyst
: Great. Just following up on that last question. I guess, can you just talk a little bit more about San Francisco? It sounds like you guys continued to
see good activity in that market in the first quarter. I guess, has any of that momentum stalled with the current uncertainty in the market? Peter,
you just talked about the activity at One Market, but can you touch on any activity you guys have at One Front? And then more broadly, I guess,
how do you think about your commitment to that market over the long term? I guess, is there any scenario in which you'd sell down your exposure
there like you did in DC, and kind of just focus on New York?
Question: Blaine Heck - Wells Fargo - Analyst
: Okay, great. That's really helpful and sounds great. And then I appreciate your commentary and transparency again on the 2025 move-outs and
upcoming expirations, but wanted to ask if you could give an update on any activity you have at Showtime, Visa, any other large spaces that are
facing expirations in '26.
Question: Blaine Heck - Wells Fargo - Analyst
: Okay. Thanks, Peter. Last one for me, maybe for Wilbur, just touching on guidance, your leasing volume and lease rate guidance were adjusted
upward, but no change in same-store NOI guidance, is that just due to kind of the delayed commencement of leases that you're expecting,
transferring into occupancy or are there any other kind of moving pieces that we should be aware of?
Question: Blaine Heck - Wells Fargo - Analyst
: Great. Thank you, guys.
Question: Dylan Burzinski - Green Street - Analyst
: Hi, guys. Thanks for taking the question. Maybe just sort of continuing on the trend of the improvement in leasing volume return activity that you
guys are seeing, not only across New York now, but San Francisco, can you sort of talk about that, specifically related to some of the larger tenants?
Are we starting to finally see these tenants come back and look to take down space, especially in San Francisco?
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MAY 01, 2025 / 2:00PM, PGRE.N - Q1 2025 Paramount Group Inc Earnings Call
Question: Dylan Burzinski - Green Street - Analyst
: Appreciate those comments, Peter. And I guess just that demand you talked about in San Francisco, would you characterize that as like net-new
demand in terms of new tenants in market or expansionary space? Or is that more sort of musical chairs and more representative of tenants wanting
to move out of quote-unquote, maybe a more commodity building into a higher-quality building that a Paramount might own?
Question: Tom Catherwood - BTIG - Analyst
: Thank you and good morning, everybody. Great to see the progress in Manhattan in both in 1Q and thus far in 2Q. Are the Kirkland and Benesch
leases all on vacant space? Or are you taking back some space or moving tenants around to get those deals done?
Question: Tom Catherwood - BTIG - Analyst
: Got it. Appreciate that. And then, Peter, you had mentioned the shrinking pool of quality available office space in Midtown, are you starting to see
tenants coming to you earlier in the renewal process to try to lock in their space than they have in years past? And does that allow you to start
pushing rents here?
Question: Tom Catherwood - BTIG - Analyst
: Got it. And then last one for me, following up on Blaine's San Francisco question. Yesterday, one of your peers expressed concern that the first
quarter leasing pickup was more of a one-off with a number of large requirements landing at once, but demand behind that primarily concentrated
in small to mid-sized tenants. Do you agree with that? And has your pipeline recently changed as large leases have signed elsewhere?
Question: Tom Catherwood - BTIG - Analyst
: Got it. Appreciate all the answers. Thanks, everyone.
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MAY 01, 2025 / 2:00PM, PGRE.N - Q1 2025 Paramount Group Inc Earnings Call
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