Vornado shakes up Penn Station leases

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

TRD New York /
May.May 25, 2014 10:00 AM

 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

 

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