![]() ![]() “It’s essential Toys R Us stays a little top of mind, considering you could buy a Barbie in 10 seconds on a mobile device. “This news is absolutely ridiculous, Toys R Us will be closing up shop at a store that excites locals and tourists and keeps the suburban stores top of mind,” Brian Sozzi, CEO and chief equities strategist of Belus Capital Advisors, told the Guardian. One of those rumors has the toy retailer moving just across the street to Vornado Realty Trust’s retail space at the base of the Marriott Marquis hotel. We have not signed a lease agreement for a new location and any rumors regarding this ongoing process are just that.” “The lease for our store in Times Square expires in 2016 and as previously noted, we have been reviewing our lease renewal options. “Toys R Us has been proud resident of Times Square since our international flagship store opened there more than 10 years ago,” a spokesman for the store told Commercial Observer. But it too will have to move, by next February, when its lease and those of other tenants - including Foot Locker, Swatch and Starbucks – expire. Toys R Us is not exactly a mom-and-pop store. “She was talking about moving to Brooklyn because the mom-and-pop stores are dying off due to high prices and New York City is becoming chain stores and glass towers of $10m apartments that people don’t live in.” “I was talking to someone about this last night and she was very upset about the way New York City is moving,” David Graff, real estate agent at Compass, told the Guardian. The skyrocketing asking prices and valuation of retail properties mean only companies who can afford to pay can have stores in certain areas. The building, owned by Hudson’s Bay Co, is valued at almost a billion more than what Hudson’s Bay paid when it bought Saks, the retail company, for $2.9bn in 2013. Then there is the $3.7bn Saks Fifth Avenue building. Such retailers include Macy’s in Herald Square or Prada, which took over the SoHo location of a Guggenheim Museum and the Tiffany & Co flagship of Breakfast at Tiffany’s fame. More retailers are catering to a higher-income clientele, which creates revenue that allows them to afford the skyrocketing real estate. “We could never get that from any one tenant.”Ī flagship store in a lucrative New York location is a sign of a profitable company – often one targeting adult consumers, not children. The lower level is being marketed at $150 per sq foot, the main ground-floor at $2,500, and the second floor at $350. The market has just escalated so,” he said. “There really is not a tenant that can rent that. ![]() As such, it might be divided into small parcels. The space is too big – and too expensive – for just one tenant, said Mendelson. ![]()
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