The Real Deal New York

Vornado shakes up Penn Station leases

The landlord is booting many of the station's fast food chains

May 25, 2014 10:00AM

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Fast food in Penn Station

Fast food in Penn Station

WEEKENDEDITION Penn Station is saying goodbye to many of its fast-food joints. Tenants like KFC and Pizza Hut, as well as eight other eateries, will leave the station in a matter of months.

All of the fast food businesses are operated by the Riese Organization on the lower Long Island Rail Road level of the commuter hub. And Riese had held the leases for 42 years, according to Crain’s. 

But their landlord, Vornado, has decided it’s time for a change and will “spruce up” the space. Vornado controls that section of Penn Station through its 1 Penn Plaza tower.

“I’m certainly sorry to see my employees lose their jobs,” said Riese CEO Dennis Riese. “But change is a fact of life.” Some 130 workers will be laid off.

The station’s other landlords, which include the Metropolitan Transportation Authority, Amtrak and New Jersey Transit, will soon be making improvement of their own after the coming release of the “Penn Station Visioning Study.”

“In the past, Vornado has always extended my lease for three years at a time, though it was cancelable with 30 days’ notice,” Riese said. “Our term ended [recently], and they didn’t extend it or articulate what they are doing.” [Crain’s] Christopher Cameron

 

2 Responses to “Vornado shakes up Penn Station leases”

  1. May 26, 2014 at 10:08 pm, Oouch said:

    I smell rats in Penn Station. At night it’s crawling with them. Maybe food’s not a great idea there.

  2. May 27, 2014 at 11:05 am, Peter Lewis said:

    Riese Restaurants = lousy service and worse food, glad to see them go. Now how to get rid of all the other Riese fast food places in NYC

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