Before Hudson Group Retail can renew its $21.3 million, 11.5-year leases for its 17 spaces insie the Port Authority Bus Terminal, it must come to terms with a newly-introduced living wage provision.
The Port Authority’s Committee on Operations decided on Wednesday morning that the operator of 580 newsstands and bookstores in 70 transportation hubs in the country must pay its 40 bus terminal workers at least $10.10 per hour.
In total, Hudson Group Retail rents out 14,065 square feet at the bus terminal. If the board approves the deal, Hudson will owe the Port Authority $1.3 million per year, which comes down to $149 per square foot. Vornado Realty Trust acted as a consultant and will receive a $338,000 commission in the deal, the New York Observer reported.
Hudson has been renting space at the bus terminal since 1991. [NYO] — Claire Moses