MTA proposes percentage-based rent payments for Grand Central retailers

Small businesses would pay rent based on percentage of gross revenue

New York /
Oct.October 14, 2020 01:45 PM
(Getty)

(Getty)

Even though there have been small signs of recovery in the retail sector, rent payments to landlords are still below pre-pandemic levels. To make up the difference, some landlords have been experimenting with solutions that will help them stay afloat.

The Metropolitan Transportation Authority, which oversees operations at Grand Central Terminal, is one such landlord: It has proposed collecting a percentage of rent from businesses within the train station based on gross revenues, Eater NY reports. The MTA’s chief development officer, Janno Lieber, said that the agency is still discussing what that percentage could be.

One caveat: The agreement would cover only small businesses, not chains with a large national presence like Starbucks or the Apple Store.

“This is going to motivate us to do our job and help us survive through this difficult time,” says Nicolas Dutko, the founder of Tartinery, a cafe located inside the train station.

Many of the shops and restaurants within Grand Central Terminal have been struggling since they rely on tourists and commuters for their business. Just this week, the iconic Grand Central Oyster Bar announced that it would close again, just two weeks after reopening along with the return of indoor dining.

The proposal still needs to be approved by the MTA’s board, which will meet on October 28. If approved, it would stay in place until ridership on Metro-North, which operates out of Grand Central Terminal, returns to normal levels, but the MTA doesn’t anticipate that happening before early 2022.

Currently, ridership is about 80 percent below what it was before the pandemic.

[Eater NY] — Sasha Jones


Related Articles

arrow_forward_ios
(Photo Illustration by The Real Deal with Getty)
Black Friday store traffic jumps, but sales don’t
Black Friday store traffic jumps, but sales don’t
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
A photo illustration of the proposed Lower Platte River Corridor (Getty, Plan Preserve Play NE)
Nebraska lawmakers mull digging $1B recreation lake
Nebraska lawmakers mull digging $1B recreation lake
Illustration of Stefan Soloviev (HaydenSoloviev, CC BY-SA 4.0, via Wikimedia Commons, Getty)
Soloviev bets long-dormant Midtown East site in casino sweepstakes
Soloviev bets long-dormant Midtown East site in casino sweepstakes
CHIP's Jay Martin and HCR Commissioner RuthAnne Visnauskas (Getty)
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
PulteGroup's Ryan R. Marshall and RedFin's Glenn Kelman (PulteGroup, RedFin, Getty)
Wall Street is bidding up housing stocks again
Wall Street is bidding up housing stocks again
Empire Capital Holdings' Josh Rahmani, Hakimian Capital's Michael Hakimian, RXR's Scott Rechler and 1330 6th Avenue (Getty, Hakimian Capital, Empire Capital Holdings, 1330aofa.com)
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
(Illustration by The Real Deal with Getty)
Retail real estate continues climb, reaches record low availability
Retail real estate continues climb, reaches record low availability
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...