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
258 8th Avenue (Google, Target)

Target planning yet another NYC store in Chelsea

Target planning yet another NYC store in Chelsea
Churchill Real Estate's Justin Ehrlich and 381 Broadway (Google Maps)

Two-year Tribeca foreclosure saga continues with lawsuit over $20M

Two-year Tribeca foreclosure saga continues with lawsuit over $20M
Adam America's Omri Sachs and Dvir Cohen with 2503-2509 Broadway (Google Maps; Adam America)

Adam America secures $63M in financing for Upper West Side project

Adam America secures $63M in financing for Upper West Side project
Convene CEO Ryan Simonetti (Convene)

Convene closes Manhattan locations as corporate events fail to return

Convene closes Manhattan locations as corporate events fail to return
New York City District Council of Carpenters’s Monitor Glen McGorty (iStock; LinkedIn)

NYC carpenters union changes how it roots out mob ties

NYC carpenters union changes how it roots out mob ties
The Economic Innovation Group identified 145 real estate investments in Opportunity Zones (iStock)

Real estate deals dominate Opportunity Zones. Is that bad?

Real estate deals dominate Opportunity Zones. Is that bad?
11 Penn Plaza and Apple CEO Tim Cook (VNO; Getty)

Apple snags more space at Vornado’s 11 Penn Plaza

Apple snags more space at Vornado’s 11 Penn Plaza
Amazon's Jeff Bezos, Google's Sundar Pichai and Facebook's Mark Zuckerberg (Getty, iStock)

Tech giants occupy nearly 600M-sf of US real estate

Tech giants occupy nearly 600M-sf of US real estate
arrow_forward_ios

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

Loading...