10Y UST4.79%30Y MTG6.71%+0.75%SOFR3.66%+0.27%VNQ$96.58-0.08%XLRE$44.16-0.20%FED FUNDS3.63%
Real Estate Trail
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Commercial Observer · Office

HR Tech Firm Gusto Expands to 76K SF at Vornado’s Penn 1

Via Commercial Observer · September 4, 2026
Compiled by Real Estate Trail Editorial · September 4, 2026

Why this matters

Office continues to trade in two distinct markets: trophy assets in walkable submarkets that are leasing at or near record rents, and commodity Class B and C buildings where the basis is still resetting. Underwriting on the latter has moved toward replacement-cost-minus, with credit underwriting now leaning on tenant covenant and remaining lease term rather than mark-to-market expectations. For LP-positioned capital, the read-through is that the bifurcation is now a structural feature of the sector, not a cycle to wait out.

Editorial analysis · Real Estate Trail Editorial

On the RET wire

Computed from Real Estate Trail’s own tracked coverage

Excerpt from Commercial Observer:
Human resources technology company Gusto has doubled its footprint at Vornado Realty Trust ’s 2.5 million-square-foot Midtown office tower Penn 1 , also known as 1 Pennsylvania Plaza . The deal includes a 13-year leas…
Read the full article at Commercial Observer

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