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The Rent Could Triple At Barney's Flagship Stores In NY, LA

The Rent Could Triple At Barney's Flagship Stores In NY, LA

Barney’s flagship stores on Madison Avenue in Manhattan and Beverly Hills’ Wilshire Boulevard will face a tripling of their rents by 2019.

The two stores together bring in about two-thirds of the chain’s total revenue, according to the New York Post, so losing or moving them could be a potentially fatal proposition for the luxury retailer.

A source the Post talked to goes as far as to call the situation a “ticking time bomb” for Barney’s.

When the lease rolls at the New York store, a renewal would bring the tab to $60M a year if a new deal were to be done at market rents on that stretch of Madison Avenue—about $1,500/SF.

In Beverly Hills, the rent jump would be from $5M a year to around $14.5M. The chain’s majority owner, Richard Perry, is looking for investors to buy minority stakes. Sales have declined steeply in recent years. [NYP]