Toys R Us has not renewed its lease for its 110000 sq ft store in Times Square.
It may be moving to an area within the neighborhood.
Cushman & Wakefield, the marketers of the space located at 1514 Broadway, between west 44th and West 45th Streets confirmed they have not opted to renew their contract and stated that there really is no tenant who can rent the 21000 sq ft on the ground floor. The asking rent for the ground floor is $2500 per square foot, $350 per foot on the second floor, and $150 per foot on the lower level. Toy R Us was paying around half that amount since they took occupation in 2000.
Brad Mendelson of Cushman & Wakefield said that they will not be able to obtain that from a single tenant. The space can be divided into sections from 30000 to 50000ft². Mendelson did not believe that Toys R Us would renew their lease, hence he and the owner were preparing to potentially market the property to multiple tenants.
The property will be vacated by Toy R Us next February. This is when the leases for other retailers in the building expire as well. The option to renew was only available to Toys R Us and not to Starbucks, Swatch, Foot Locker and Bond 45.
According to another broker, Toys R Us may be moving to a large retail area at 1535 Broadway. They may occupy the entire lower level and 3000 square feet on the ground floor.
The owners of the building, Vornado Realty Trust, have declined to comment.
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25 MARCH 2015, USA