The landlord of the Times Square McDonald’s is trying to force the fast-food chain’s to pay to advertise outside its own restaurant.
McDonald’s told landlord, 1522 Broadway Retail Owner LLC, that it hoped to renew its lease for another decade. But it wasn’t able to negotiate a fair deal for the two-story space at 1560 Broadway Near West 46th Street that it has called home for the past 30 years, according to court papers cited by the New York Post.
The problem was that the new landlord — a joint venture that includes Jeff Sutton of Wharton Properties — demanded that McDonald’s pay extra for its golden arches in an amount “equivalent to the revenue [the] landlord could receive if it were permitted to install and sublet a large LED billboard on the exterior of its building.”
Average rents in the area recently reached $2,283 per square foot, according to real estate firm Cushman & Wakefield.
In response, McDonald’s is asking a judge to forbid any future negotiators from charging extra rent for its sign. [NYP] – Christopher Cameron