Vornado’s PENN 2 Hits 90% Leasing Milestone After Major Veeva and Altana AI Deals

Vornado Realty Trust has reached a major leasing milestone at PENN 2, with the renovated 31-story Manhattan office tower now about 90% leased after signing two full-floor agreements with Veeva and Altana AI. The new leases total more than 124,000 square feet, strengthening PENN 2’s position as one of the key office assets in New York’s growing PENN DISTRICT.

Two Technology Tenants Drive Leasing Momentum

The leasing milestone was supported by commitments from two technology-focused companies. Veeva signed a 12-year lease for about 62,223 square feet on the 11th floor, while Altana AI agreed to a 10-year headquarters lease for roughly 62,309 square feet on the 21st floor.

These deals show that high-quality, transit-connected office buildings are still attracting strong tenant demand, even as the broader office market continues to adjust to hybrid work trends. For Vornado, the agreements are an important sign that its investment in PENN 2 and the wider PENN DISTRICT is gaining traction.

PENN 2 Becomes a Premium Office Destination

PENN 2 has been transformed into a modern office tower with upgraded workspaces, improved public areas, and strong building amenities. The tower sits above Penn Station, giving tenants direct access to one of North America’s busiest transportation hubs. The wider PENN 1 and PENN 2 campus includes about 4.4 million square feet of premium office space.

The building’s tenant roster already includes major names such as Madison Square Garden Entertainment, Universal Music Group, Major League Soccer, Verizon, and Dick’s Sporting Goods. The addition of Veeva and Altana AI adds more technology strength to the property and supports Vornado’s strategy of attracting blue-chip and innovation-driven tenants.

Why the Leasing Milestone Matters

Reaching 90% leased is meaningful because it signals strong confidence in the building’s location, design, and long-term value. In a market where many older office buildings are struggling, PENN 2’s progress highlights the growing divide between upgraded, amenity-rich offices and less modern properties.

Companies are still willing to lease physical office space when the location supports employee access, brand image, collaboration, and recruitment. PENN 2 benefits from all four. Its location above Penn Station gives workers access to subway lines, Long Island Rail Road, New Jersey Transit, PATH, and Amtrak. Metro-North service is also expected to connect to the area in 2027.

Vornado’s PENN DISTRICT Strategy Gains Support

Vornado has spent years reshaping the area around Penn Station into a more polished business, retail, and entertainment district. The PENN DISTRICT plan includes office upgrades, new public plazas, improved sidewalks, better station access, and more retail options. These changes are designed to make the neighborhood more attractive to companies, workers, visitors, and investors.

The success at PENN 2 suggests that the strategy is working. Instead of depending only on location, Vornado has focused on creating a full campus environment. That approach is important because modern tenants often want more than office space. They want convenience, flexible amenities, food options, outdoor areas, and easy commuting.

Impact on Vornado Realty Trust

For Vornado Realty Trust, the leasing activity may improve investor confidence in its New York office portfolio. Office real estate has faced pressure from higher interest rates, remote work, and slower leasing in some markets. However, trophy and newly renovated buildings in strong locations have generally performed better than older assets.

PENN 2’s 90% leasing level gives Vornado a stronger story to tell shareholders. It shows that capital improvements can produce results when they are tied to a prime location and clear tenant demand. The deals also add long-term lease stability because both Veeva and Altana AI signed multi-year agreements.

Conclusion

Vornado’s PENN 2 reaching 90% leased marks an important win for the company and for the continued redevelopment of Manhattan’s PENN DISTRICT. The new full-floor leases with Veeva and Altana AI show that premium office buildings with strong transportation access can still attract major corporate tenants. As companies rethink their workplace needs, PENN 2 stands out as a clear example of how modern design, location, and amenities can help office properties stay competitive.

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