Company: SLG-PI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001040971-25-000010
Chunk: 7

Company: SL GREEN REALTY CORP
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1
Chunk 7
---
 is exemplified by the following tables, which show the percentage of leasing volume attributable to each industry:

Percent of Manhattan Leasing Volume (1)Industry20242023Financial Services31.1 %39.1 %Technology, Advertising, Media, and Information ("TAMI")15.5 %15.2 %Legal Services14.8 %17.2 %Real Estate9.4 %2.2 %Retail/Wholesale9.2 %6.2 %Professional Services8.0 %5.6 %Public Sector6.7 %12.4 %Amusement, Arts, Entertainment2.8 %— %Other2.5 %2.1 %

(1)Source: Cushman and Wakefield Research Services

General Terms of Leases in the Manhattan Markets

Leases in Manhattan typically contain terms that may not be contained in leases in other U.S. office markets. The initial term of leases entered into for space in Manhattan is generally seven to fifteen years. Tenants leasing space in excess of 10,000 square feet for an initial term of 10 years or longer often will negotiate an option to extend the term of the lease for one or two renewal periods, typically for a term of five years each. The base rent during the initial term often will provide for agreed-upon periodic increases over the term of the lease. Base rent for renewal terms is most often based upon the then fair market rental value of the premises as of the commencement date of the applicable renewal term (generally determined by binding arbitration in the event the landlord and the tenant are unable to mutually agree upon the fair market value), though base rent for a renewal period may be set at 95% of the then fair market rent. Very infrequently, leases may contain termination options whereby a tenant can terminate the lease obligation before the lease expiration date with payment of a penalty together with repayment of the unamortized portion of the landlord's transaction costs (e.g., brokerage commissions, free rent periods, tenant improvement allowances, etc.).

In addition to base rent, a tenant will generally also pay its pro rata share of increases in real estate taxes and operating expenses for the building over a base year, which is typically the year during which the term of the lease commences, based upon the tenant's proportionate occupancy of the building. In some smaller leases (generally less than 10,000 square feet), in lieu of paying additional