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aramount Group's second-quarter earnings call revealed a significant unreported lease, but not the subsequent deal signed after the quarter ended. Chairman and CEO Albert Behler announced that investment bank Piper Sandler had leased 140,000 square feet at 1301 Sixth Ave., one of Paramount's prime Midtown assets. However, sources later disclosed that law firm Adler & Stachenfeld took an additional 40,000 square feet after the quarter ended.

    The starting rents for both leases exceeded $90 per square foot, according to Paramount executives. Behler also reported that the company had leased a total of 690,000 square feet in New York and San Francisco year-to-date, with 52% located in Manhattan. The New York portfolio is now 88.1% leased, its highest level since early 2022.

    Behler attributed the city's strength to "a clear and sustained flight to quality." However, the data did not account for vacant space at 60 Wall St., which Paramount is spending $250 million to modernize. Analysts failed to ask about this omission during the call.

    Paramount CFO Linda Berberi addressed debt concerns, stating that the company's largest upcoming maturity, an $860 million loan on 1301 Sixth Ave., is backed by high-performing assets and a liquid debt market. The company plans to refinance the asset in the future.

    Regarding Showtime Networks' planned move-out from 1633 Broadway next year, Behler reported active showings for the space. He noted that asking rents range from $70 to $90 per square foot, with activity feeling "very good."