Toys R Us will not be renewing the lease for its 110,000 square foot flagship store on Times Square.
The store, known for its 60-foot indoor Ferris wheel and animated T-Rex, will close its doors in February 2016.
The Commercial Observer reports that instead of renewing its current lease, the toy retail giant may be looking at a move to retail space in the neighbourhood.
“They did not exercise the option to renew,” said Brad Mendelson from Cushman & Wakefield, who is marketing Toys R Us’ space on behalf of landlord Charles Moss.
“Here’s the long and short of it. They have 21,000 square feet [on the ground floor]. There really is not a tenant that can rent that. The market has just escalated so.”
Rent for the ground floor in the 150,000 square foot building is $2,500 per square foot, $150 per foot on the lower level and $350 a foot on the second floor.