Toys "R" Us is leaving the bright lights of Times Square, at least for now.
The Commercial Observer reports that the toy store, long an anchor in New York City’s most popular tourist destination, will not be renewing its lease next February. A broker for the property on Broadway between West 44th and West 45th streets told the site that the move comes after rising rents forced the toy store to look into new options for its flagship location.
“Here’s the long and the short of it. They have 21,000 square feet on the ground floor,” said Brad Mendelson, the broker. “There really is not a tenant that can rent that.”
The broker told the Observer that rent on the ground floor of the 150,000-square-foot building costs $2,500 per square foot. The upper floor and lower level cost less, but the toy store has been paying about half the current going rate since it began renting the about 110,000 square feet of the building in 2000.
Mendelson told the Observer the building will likely be broken up into several sections for multiple tenants.
Toys "R" Us said in a statement to the Observer that it is reviewing its lease options for 2016, but it hasn’t made any determination as to whether it would stay or find a new location. Another broker told the Observer the toy chain may be looking to move into another location on Broadway between West 45th and West 46th streets.