Vornado Realty Trust
An American real estate investment trust focused primarily on office buildings and street retail in Manhattan.
Last updated August 31, 2026
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Overview
Vornado Realty Trust is a publicly traded American real estate investment trust headquartered in New York City. Its principal business is the ownership, operation, redevelopment, and leasing of office properties and street-level retail assets, with a strong concentration in Manhattan. The company also has interests in selected properties and joint ventures in other United States markets, including San Francisco, Chicago, and Northern Virginia. The modern Vornado organization developed from a much older retail and consumer-products business. The company’s origins are associated with Two Guys, a discount-store chain established in 1947 by Sidney and Herbert Hubschman. In 1959, Two Guys acquired O. A. Sutton Corporation, which manufactured electric fans under the Vornado name. The corporate name subsequently became Vornado Inc. During the 1960s, the business operated more than 200 stores, but it gradually divested its retail operations during the 1970s. By the late 1970s and early 1980s, the value of its real estate portfolio had become more important than the declining retail chain. Real-estate investor Steven Roth’s Interstate Properties acquired a significant stake in Vornado in 1980 and gained control after a proxy contest in 1981. Under this ownership, Vornado shifted decisively toward real estate. Its transformation included the acquisition and restructuring of Alexander’s, a troubled retailer whose principal value lay in its strategically located New York properties. Vornado later acquired Citicorp’s interest in Alexander’s, and Alexander’s became a separate real estate investment trust in 1993. That same year, Vornado Inc. was converted into Vornado Realty Trust, establishing the current REIT structure. The company expanded its Manhattan office platform through a 1997 stock acquisition of office properties from Bernard H. Mendik. In 2001, it acquired Charles E. Smith Commercial Realty, adding a substantial portfolio concentrated in Arlington, Virginia, and other Washington-area locations. Vornado also pursued major investments outside its core Manhattan portfolio, including a 32.5 percent interest in Toys “R” Us acquired in 2005. That investment was ultimately written off after the retailer entered bankruptcy in 2018. Vornado’s portfolio has included prominent office, retail, hospitality, and mixed-use properties. Notable assets and interests have included 770 Broadway, 888 Seventh Avenue, 350 Park Avenue, 660 Fifth Avenue, 1290 Avenue of the Americas, the Fuller Building, Penn 1, the New York Marriott Marquis retail and signage components, the Crowne Plaza Times Square Manhattan retail and office components, Merchandise Mart in Chicago, and a substantial interest in 555 California Street in San Francisco. The company has also maintained a significant interest in Alexander’s, whose assets include the office and retail complex at 731 Lexington Avenue. The company’s corporate structure has changed through portfolio separations and joint ventures. In 2015, Vornado completed the spin-off of Urban Edge Properties, separating a group of retail assets located largely outside Manhattan. In 2017, its Charles E. Smith Companies subsidiary was combined with JBG Companies to create JBG SMITH Properties, a separately traded real estate company focused on the Washington metropolitan area. These transactions sharpened Vornado’s emphasis on high-value New York office and retail properties. Vornado is associated most closely with Steven Roth, who has served as a central figure in its ownership and management for decades. Michael D. Fascitelli served as chief executive from 2009 until Roth replaced him in 2013. The brand’s current identity is therefore that of a concentrated, institutionally managed urban property owner rather than the diversified retail and appliance business from which its name originated.
History
Vornado Realty Trust traces its corporate lineage to Two Guys, a discount-store chain founded in 1947 by Sidney and Herbert Hubschman. Two Guys acquired O. A. Sutton Corporation in 1959. Because O. A. Sutton manufactured electric fans sold under the Vornado name, the combined business adopted the Vornado name. The company expanded its retail operations during the 1960s, operating more than 200 stores, but began selling and closing stores during the 1970s as its real estate holdings became increasingly important. In 1980, Interstate Properties, a real estate development company controlled by Steven Roth, purchased an 18 percent interest in Vornado. Interstate gained control in 1981 after prevailing in a proxy contest and reduced the retail chain to a small number of stores. This change in control marked the beginning of Vornado’s transformation from a retailer with property holdings into a real estate-focused enterprise. Vornado and Donald Trump each acquired approximately 20 percent of Alexander’s in 1986. Alexander’s was a troubled retailer whose properties included a strategically located Manhattan site. Their holdings later rose to approximately 27 percent each. Trump subsequently pledged his interest as collateral for a personal loan, and Citibank took control of the pledged shares in 1991. In 1992, Roth and Alexander’s creditors forced the retailer into bankruptcy, after which its stores were closed. Alexander’s emerged in 1993 as a real estate investment trust. Vornado acquired Citicorp’s interest in Alexander’s in 1995. Vornado Inc. itself was converted into Vornado Realty Trust in 1993. The company expanded its New York office holdings in 1997 by acquiring a portfolio from Bernard H. Mendik in a stock transaction valued at approximately $654 million. Mendik joined Vornado as co-chairman but resigned from that role in 1998. In February 2001, Vornado won a competitive bid for a proposed 99-year lease of the World Trade Center, offering approximately $3.25 billion. The company ultimately did not proceed because of disagreements concerning lease provisions and potential tax liabilities. Silverstein Properties later completed the lease transaction. In October of the same year, Vornado acquired Charles E. Smith Commercial Realty for approximately $1.58 billion, adding office assets concentrated in Arlington, Virginia, and strengthening its Washington-area presence. The company continued to make investments beyond its Manhattan core. In 2005, Vornado acquired a 32.5 percent interest in Toys “R” Us. The retailer later filed for bankruptcy in 2018, and Vornado wrote off its investment. Vornado also held major interests in prominent office and mixed-use assets, including properties in New York, San Francisco, and Chicago. Michael D. Fascitelli became chief executive in 2009. Steven Roth replaced him in 2013. In 2015, Vornado completed the spin-off of Urban Edge Properties, separating retail holdings located mainly outside Manhattan. In 2017, its Charles E. Smith Companies subsidiary merged with JBG Companies to form JBG SMITH Properties. These portfolio actions reinforced Vornado’s strategic concentration on Manhattan office buildings, street retail, and large-scale urban redevelopment.
- 2017
JBG SMITH Properties is formed
[1]Vornado’s Charles E. Smith Companies subsidiary combines with JBG Companies to form JBG SMITH Properties.
- 2015
Urban Edge Properties is spun off
[1]Vornado completes the corporate spin-off of its interest in Urban Edge Properties.
- 2013
Steven Roth returns as chief executive
[1]Steven Roth replaces Michael D. Fascitelli as chief executive officer.
- 2005
Toys “R” Us investment made
[1]Vornado acquires a 32.5 percent interest in Toys “R” Us.
- 2001
Charles E. Smith Commercial Realty acquired
[1]Vornado acquires Charles E. Smith Commercial Realty for approximately $1.58 billion.
- 1997
Mendik office portfolio acquired
[1]Vornado acquires a Manhattan office-building portfolio from Bernard H. Mendik in a stock transaction valued at approximately $654 million.
- 1993
Vornado becomes a real estate investment trust
[1]Vornado Inc. is converted into Vornado Realty Trust, formalizing its real estate investment trust structure.
- 1981
Interstate Properties takes control
[1]Interstate Properties wins a proxy contest and gains control of Vornado.
- 1980
Interstate Properties acquires a major stake
[1]Steven Roth’s Interstate Properties acquires an 18 percent interest in Vornado because of the value of its real estate holdings.
- 1959
Vornado fan business enters the corporate lineage
[1]Two Guys acquires O. A. Sutton Corporation, maker of electric fans sold under the Vornado name.
Products and positioning
A concentrated urban real estate investment trust focused on high-profile office and street-retail properties, especially in Manhattan.
Office real estate
Manhattan office buildings
Vornado’s principal portfolio consists of large office properties in Manhattan. These assets generate rental income from corporate and institutional tenants and may also include ground-floor retail, signage, redevelopment, and repositioning opportunities. Notable properties associated with the portfolio include 770 Broadway, 888 Seventh Avenue, 350 Park Avenue, the Fuller Building, and Penn 1.
Retail real estate
Manhattan street retail
Street-level retail is a major component of Vornado’s Manhattan strategy. The company owns or has owned retail spaces in prominent locations including Fifth Avenue, Times Square, Broadway, and other high-traffic commercial corridors. These properties are typically leased to retail, food-service, entertainment, and hospitality-related tenants, with value also derived from visibility and signage rights.
Mixed-use real estate
Urban mixed-use and redevelopment properties
Vornado’s holdings include mixed-use and redevelopment-oriented assets combining office, retail, hospitality, transportation-adjacent, and public-realm functions. The company’s New York portfolio has included major development sites and properties connected with the Penn District and other large-scale urban projects.
Real estate investment · 1995
Alexander’s real estate interest
Vornado owns a substantial interest in Alexander’s, a separate real estate investment trust with prominent New York properties. Alexander’s assets include 731 Lexington Avenue, a large office and retail complex known for its location and mixed-use character.
Real estate joint ventures
Other property interests
Beyond Manhattan, Vornado has held significant interests in properties such as 555 California Street in San Francisco, 1290 Avenue of the Americas in New York, and Merchandise Mart in Chicago. These investments broaden the company’s exposure while remaining centered on large, institutionally managed urban assets.
Brand decisions
2017
Combination of Charles E. Smith Companies and JBG CompaniesM&ABackground
Vornado pursued a restructuring of its Washington-area real estate interests.
Action taken
Its Charles E. Smith Companies subsidiary merged with JBG Companies to form JBG SMITH Properties.
Aftermath
The transaction created a separate publicly traded real estate platform focused on the Washington metropolitan area.
2015
Spin-off of Urban Edge PropertiesM&ABackground
Vornado reviewed the strategic fit of retail properties located outside its increasingly concentrated Manhattan platform.
Action taken
The company completed the corporate spin-off of its interest in Urban Edge Properties.
Aftermath
Urban Edge became a separate company focused on retail properties, while Vornado sharpened its focus on New York office and street-retail assets.
2001
Bid for a 99-year World Trade Center leaseOtherBackground
The Port Authority sought a long-term leaseholder for the World Trade Center complex.
Action taken
Vornado submitted the winning bid of approximately $3.25 billion, reportedly exceeding Silverstein Properties’ offer by $30 million, but later declined to complete the transaction because of lease-term and tax concerns.
Aftermath
Silverstein Properties ultimately signed the lease in April 2001.
Proposed lease consideration. Approximately $3.25 billion bid (2001)
- Silverstein Properties — Silverstein Properties later completed the World Trade Center lease after Vornado did not proceed.
2001
Acquisition of Charles E. Smith Commercial RealtyM&ABackground
Vornado sought to expand its office-property platform beyond New York.
Action taken
The company acquired Charles E. Smith Commercial Realty in a transaction valued at approximately $1.58 billion.
Aftermath
The acquisition added substantial assets in Arlington, Virginia, and the Washington-area market.
Transaction value. Approximately $1.58 billion (2001)
1993
Conversion to a real estate investment trustStrategyBackground
The company’s retail operations had been reduced substantially while the value of its real estate holdings became the central business driver.
Action taken
Vornado Inc. was converted into Vornado Realty Trust.
Aftermath
The conversion established the corporate form and identity under which the company operated as a property-focused REIT.
Recent events
Vornado reports third-quarter 2026 financial results[3]
Reported:
Vornado Realty Trust reported its third-quarter 2026 financial results, including a net loss attributable to common shareholders of $47.138 million and adjusted funds from operations of $126.656 million.
- Unconfirmed
Vornado sues Hongkun USA over unpaid rent[4]
Reported:
Vornado is suing Hongkun USA for $1.1 million in back rent at 888 Seventh Avenue, saying Hongkun skipped payments after the parties renegotiated lease terms during the pandemic.
Vornado sues Elie Tahari over Fifth Avenue lease[5]
Reported:
Vornado Realty Trust filed a lawsuit alleging that Elie Tahari breached its lease by vacating commercial space at 510 Fifth Avenue, and sought future rent and unpaid rent.
Sources5 sources
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