Vornado is looking to transform the Penn Station area. The entrepreneur and rapper recently wrote an open letter asking NYC residents to support the proposal and “honor the city of dreams.” The bid got backing from many celebrities, including Jay-Z and his Roc Nation company. The project would bring billions in profit for the city and state while boosting the local economy. The partners call the location perfect for a casino. SL Green teamed up with Caesars Entertainment, one of the largest and most recognizable gaming companies, for a Times Square casino. Details On The Casino Bidsīoth companies have big plans in iconic NYC locations. The companies face stiff competition for licenses and resistance from local residents and organizations. SL Green jumped on board right away, while Vornado was hesitant at first but entered the race later.Ī casino bid is a high-risk, high-reward scenario. Last year, the New York Gaming Commission announced it would issue three downstate casino licenses. A winning bid would be a high-risk bet with enormous revenue potential. While competitors are looking at residential buildings, SL Green and Vornado are aiming higher.īoth companies have put in ambitious bids for a downstate casino in Manhattan. The stock prices reflect the need for diversification.
And short sellers are compounding the stock issues, particularly for SL Green. New leases have typically been for smaller spaces or shorter times. That has changed, as many tech employees now work from home. The biggest office clients used to be tech companies, which leased larger spaces in anticipation of growth.
Office occupancies have stalled at around 50% of pre-pandemic levels.
Meanwhile, Vornado’s stock is down 62% in the past year and 80% since the pandemic. SL Green’s stock is down 65% in the past year and 78% since the start of the COVID-19 pandemic. For Vornado, it’s a 20-year low. They’ve become favorite targets for short-sellers as New York City offices sit empty. SL Green’s share values are the lowest they’ve been in ten years.
Downstate casino bids by New York developers like SL Green and Vornado could be a lifeline as the companies’ traditional business is struggling.
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