FAO Schwarz is in negotiations to move to Paramount Group’s 1633 Broadway office tower north of Times Square.
The retailer would take space in the building’s basement, which is connected to a large public plaza along Broadway. Paramount, which owns the 48-story, 2.4 million-square-foot tower, is reportedly considering creating a more prominent entryway in the plaza that would lure shoppers to the new FAO Schwarz.
The iconic toy store is set to leave its 65,000-square-foot space at Boston Properties’ GM Building at 767 Fifth Avenue, after the REIT said it may work with FAO to “expedite” the retailer’s departure before its lease expires at the end of next year.
FAO currently pays less than $300 per square foot at the space, which would likely command $2,000 per square foot for the ground floor, according to Crain’s.
The retailer would be able to take roughly the same amount of space at 1633 Broadway that it currently has, Crain’s reports, while the new space would reportedly be similar to the Apple Store’s at the GM Building.
FAO’s arrival in the Times Square area would come as parent company Toys R Us prepares to leave its 110,000-square-foot flagship retail space at 1514 Broadway. [Crain’s] – Rey Mashayekhi