Toys “R” Us chose not to renew its lease at the 110,000-square-foot flagship store in the Times Square area, according to a report by the Commercial Observer (CO).
“They have 21,000 square feet [on the ground floor]. There really is not a tenant that can rent that. The market has just escalated so,” Brad Mendelson of Cushman & Wakefield, who is marketing the Toys “R” Us space at 1514 Broadway between West 44 and West 45 Streets on behalf of landlord Charles Moss, tells the CO.
According to Mendelson, the asking rent on the ground floor in the 150,000-square-foot building is $2,500 per square foot, $150 per foot on the lower level, and $350 a foot on the second floor. Toys “R” Us is paying about half that since commencing to rent at the location in 2000. Mendelson says the firm is looking for multiple tenants to fill the space.
Toys “R” Us will vacate the space next February. The store has become a popular Times Square attraction, featuring a life-sized Jurassic Park-inspired T-Rex, a 60-foot indoor Ferris wheel featuring kids’ favorite cartoon characters, a 4,000-square-foot Barbie dollhouse, and—of course—thousands of toys.
However, the toy retail giant may retain a presence in the hub of New York City. Rumors suggest Toys “R” Us may be moving to Vornado Realty Trust’s large retail space at the base of the Marriott Marquis at 1535 Broadway between West 45 and West 46 Streets, taking around 3,000 square feet on the ground floor and the entire lower level. The building houses the largest single LED screen in North American, which is now live. Toys “R” Us has not confirmed these rumors.
“Toys “R” Us has been a proud resident of Times Square since our international flagship store opened there more than 10 years ago,” says the retailer in a statement. “The lease for our store in Times Square expires in 2016 and, as previously noted, we have been reviewing our lease renewal options. We have not signed a lease agreement for a new location and any rumors regarding this ongoing process are just that.”
