Toys R Us will be vacating its flagship store in New York City’s Times Square, as Gap signs the lease for the 110,000 square foot store.
The toy retailer has confirmed that it will now leave the site it has occupied for the last 15 years, but remains hopeful it will find new tenancy in the area.
The store’s tenancy at 1514 Broadway has been under scrutiny since the site’s realtor reported that Toys R Us was yet to renew its lease.
A Toys R Us spokesperson has now confirmed that it will not be doing so.
“We recently decided not to exercise our option to renew the lease on our Times Square store,” they said.
However, the firm is looking for a new home for it, but is still to sign another lease.
“We are hopeful we can remain n the Times Square area,” they added.
Recent years have seen asking rent for the space double in the 15 years since the toy retailer originally signed for it, hitting as much as $2,500 per square foot on the street level floor.
Gap has not disclosed how much it has agreed to pay for the lease, but has said it will split the space into two for its Gap and Old Navy brands.
The company hopes to complete the construction of the stores by early 2017.