FAO Schwarz renews lease at GM Building
FAO Schwarz has ended speculation by finally renewing its lease at Boston Properties’ General Motors building, the New York Post reported. There had been rumors that the Toys “R” Us-owned toy retailer might leave when its lease ended in 2012. Agent Bradley Mendelson of Cushman & Wakefield confirmed the extension.
In March it was reported that Boston Properties and FAO Schwarz had entered arbitration over the rent. Shortly after purchasing the 1.77 million-square-foot building, Boston Properties said FAOSchwarz was not the most financially viable tenant considering the under-market rent it currently pays.
Sources said Mendelson’s team quietly talked to other prospective users if Schwarz decided not to renew.
Meanwhile, Toys ‘R’ Us is still expected to go public after several times scheduling, and then postponing, an IPO date, the Post said. [Post]