FAO Schwarz toy store in NYC closing July 15
Toys "R" Us is closing the iconic FAO Schwarz store in New York City on July 15 due to rising rental costs, the company said Friday.
But don't lose heart, toy lovers. The company is seeking another Manhattan location — possibly near Times Square — for the store that gained global fame after it was featured in "Big," the 1988 hit movie that featured actors Tom Hanks and Robert Loggia dancing on a giant toy piano across the FAO Schwarz floor.
Working with landlord Boston Properties, Toys "R" Us opted not to renew its lease. Instead the company reached agreement to move out of the two floors FAO Schwarz occupies in the General Motors building before the deal's 2017 expiration, Toy's "R" Us said in a statement.
The early exit will help the company "realize meaningful rent savings" while it seeks another Manhattan site to relocate the popular tourist location that for generations has attracted shoppers both from the U.S. and around the globe, the firm said.
"The decision to vacate this space is due to the continuing rising costs of operating a retail location on Fifth Avenue in New York City," Toys "R" Us said in a statement announcing the closing.
"The company is committed to the FAO Schwarz brand and growing its legacy," Toys "R" Us added. "In fact, it is actively searching for another location in midtown Manhattan where FAO Schwarz can welcome shoppers from around the world."
Toys "R" Us spokeswoman Kathleen Waugh declined to discuss specifics of the rent costs at the Fifth Avenue location, and instead referred questions to the landlord. Boston Properties did not immediately respond to a message seeking comment.
However, Boston Properties President Doug Linde said during during the company's first-quarter earnings call with financial analysts last month that "the FAO Schwarz space is going to go through a major renovation and downtime as part of any re-leasing."
"It's possible that we may be able to work with FAO to expedite this transition sooner than the expiration of their lease," said Linde.
Crain's New York Business reported last week that FAO Schwarz pays less than $300 per square foot for approximately 65,000 square feet of space in the current location. Boston Properties would get $2,000 per square foot or more for the ground floor space now occupied by the toy store, according to the Crain's report.
Citing sources familiar with the deal, the Crain's report said Toys "R" Us is in negotiations to move FAO Schwarz to a Broadway office tower north of Times Square.
During its more than 150-year history, FAO Schwaz has resided at several different addresses around New York City. It moved to its present location in 1986, Toys "R" Us said.
