GRAND CENTRAL TERMINAL JULY 2011 RETAIL DEVELOPMENT. Page 124

Transcription

1 RETAIL DEVELOPMENT AT GRAND CENTRAL TERMINAL JULY 2011 Page 124

2 Grand Central Terminal continues to be 100% leased/licensed (approximately 134,000 square feet, plus 6 Graybar Passage Kiosks). The focus continues to be on strengthening the merchandise mix, while maintaining the appropriate balance between local and national retailers. Rents for new leases consistently meet or exceed current rents. These rental increases have been realized while reducing expenses. I. PROPERTY PERFORMANCE Page 125

3 Financial Summary Income and Expense YTD May YTD May Variance YTD May 2011 Actual v Actual Actual Actual Budget Budget Actual Actual 10 v Actual 09 Budget Amount % Amount % Tenant Revenue* 17,122,762 17,234,958 19,684,759 21,207,159 8,823,528 8,514,258 2,449,801 14% (309,270) -2% Other Income* 5,457,447 5,664,856 6,665,351 5,575,405 2,047,783 2,747,239 1,000,495 18% 699,456 10% Total Revenue 22,580,209 22,899,814 26,350,110 26,782,564 10,871,311 11,261,497 3,450,296 15% 390,186 1% Operating Expenses 8,816,577 7,383,968 7,012,218 7,873,344 3,120,401 2,853, ,750 5% 266,850 4% Non-Recurring Projects 471, , ,513 1,751, ,587 51,031 (175,039) -38% 548,556 87% Total Expenses 9,287,725 7,842,442 7,645,731 9,624,351 3,719,988 2,904, ,711 3% 815,406 11% Net Operating Income 13,292,484 15,057,372 18,704,379 17,158,213 7,151,323 8,356,915 3,647,007 24% 1,205,592 6% * Tenant Revenue includes minimum, percentage, and storage rent; Other Income includes sponsorships and events, pass-though charges to tenants, etc. Page 126

4 II. LEASING ACTIVITY ( nd quarter) NEW LEASES SIGNED Lexington Passage Origins Jo Malone TOTO Dining Concourse Frankie s on the Go Tri Tip Grill Golden Krust Bakery Graybar Passage Beer Table Pantry 42 nd Street Passage Vince Camuto Kidding Around Toys Shuttle Passage Pylones Grand Central Market Zaro s Bread Basket LEASES IN NEGOTIATION Grand Central Market Eli s Bread Eli s Produce Wild Edibles (Staff Summary presented to July Finance Committee) Spices and Tease (Staff Summary presented to July Finance Committee) Dining Concourse Shake Shack (Staff Summary presented to July Finance Committee) East and Northeast Balcony Apple (Staff Summary presented to July Finance Committee) Page 127

5 III. TENANT SALES PERFORMANCE Average Sales Per Square Foot by Retail Area Q Q nd Street Retail $928 $939 $184 $190 Main Concourse $2840 $3243 $676 $561 Shuttle Passage $1033 $1026 $256 $ nd Street Passage $1779 $1815 $454 $389 Graybar Passage $2953 $3045 $715 $682 Lexington Passage $2264 $2244 $550 $525 Grand Central Market $2855 $2808 $735 $749 Dining Concourse $2321 $2273 $595 $547 Restaurants $686 $674 $172 $165 All GCT $1299 $1247 $318 $305 All GCT $1667 $1625 $403 $389 (excluding restaurants) 2010 YEAR END SALES PERFORMANCE Total reported retail sales for 2010 equaled $172,513,151, a 3.8% increase from 2009 Total sales for the 72 tenants open for all of 2010 and 2009 increased by 2% Page 128

6 Of these tenants: 38 reported positive comparable sales 4 reported breakeven sales 30 reported negative comparable sales Comp sales decreased by retail neighborhood as compared to 2009 as follows: Main Concourse (12%) 42 nd Street ( 1%) Shuttle Passage. ( 1%) Comp sales increased by retail neighborhood as compared to 2009 as follows: 42 nd Street Passage 1% Biltmore Room 13% Dining Concourse 2% Graybar Passage 4% Lexington Passage 8% Grand Central Market 7% Restaurants 3% 2011 end of Q1 SALES PERFORMANCE Comp sales for Q to Q have generally shown a modest increase by neighborhood IV. MARKETING Retail Promotions Dining Week ran from August 20th-29th. An advertising campaign promoted the event with in-terminal signage, E- News, GCT website and Facebook. Customers were invited to take advantage of special discounts at restaurants, GC Market, Dining Concourse and other retail shops. Planning is currently underway for the 2 nd annual Dining Week set to run in October. Fashions Night Out played off New York City s Fashion Week and promoted GCT fashion and beauty tenants with product demonstrations and a runway fashion show in Vanderbilt Hall. Marketing included in-terminal posters, a Page 129

7 media buy in AM NY, MNR seat drops, media exposure through NYC & Co. and blast s. Planning is currently underway for this year s Fashions Night Out. Connections Magazine Spring/Summer 2011 edition was seat-dropped on trains last month. The magazine includes a variety of tenant offers, in addition to some interesting retail and MNR editorial pieces. Digital Media The GCT website s weekly E-blasts focus on thematic promotional weeks, ie Mother s Day, Father s Day. The E- blasts are full of tenant offers and news of all Vanderbilt Hall and Taxi Stand events. Take a look, if you have not already signed up, at Way Finding and Retail Identity Signage Upgraded signage kiosks enhance retail identity and way finding throughout the Terminal. These displays also provide an opportunity for up-to-date MNR and MTA messaging. Public Relations Publicity efforts continue to garner positive stories and media recognition for GCT retail and public events throughout 2010 and the first half of That contract has come to an end, and the new solicitation was awarded to Goodman Media to now handle all public relations efforts in this regard, as well as all initiatives associated with the GCT Centennial. Sponsorship Agent Premier Partnerships has recently been engaged to assist in finding sponsorship partners for existing and new events at GCT. In addition, Premier Partnerships will work closely with MTA and MNR on all GCT Centennial related sponsorship opportunities. V. PUBLIC EVENTS Vanderbilt Hall and Taxi Stand event revenue in 2010 was $2.9 MM, up $500,000 or 20% over 2009, reflecting an improved economy (particularly for event marketing) and a realigned event sales effort (sales brought in-house at Jones Lang LaSalle). Page 130

8 The New York Times was the presenting sponsor for the Holiday Fair for $250,000. By the end of June 2011, event contracts totaling $1,927,150 in revenue have already been signed. This is well over the 2011 budget of $1,300,000 for events other than the Holiday Fair. VI. ON-GOING CAPITAL PROJECTS ( nd quarter) Carey s Hole Carey s Hole is the area located below certain retail stores (Rite Aid, Hot & Crusty, Banana Republic). With the relocation of the MNR conductors and engineers to the 3 rd floor of Hall D, Carey s Hole will be available for retail and tenant storage use. The second basement was offered along with the Metrazur space and it is proposed that Apple, Inc. will use it for back-of-the-house functions. We will be publishing an RFP for the balance of the space shortly. Graybar Passage and Grand Central Market Balcony Retail Study In order to expand upon the success of the Grand Central Market, we are looking to enhance the Graybar Passage and determine the best commercial use for the Market s Balcony level.. An architectural study will identify additional retail possibilities for the Graybar Passage. Current annual revenue from the 3100 sf of retail in the Graybar Passage is $755,000. We will seek to expand upon this amount, as well as garner additional revenue from the 4000 sf of commercial space in the Market s Balcony. Replacement doors to the Market from Lexington Ave The Grand Central Market has been extremely successful and with its success comes normal wear and tear. The eight doors have shown weakness in the base and the hinge and closure locations. The new doors, installation completed, were designed with a stainless steel interior with bronze cladding, heavy duty continuous hinges and closure. GCT Terrazzo Floor The on-going replacement of select floor areas where in need of repair. Small percent was with new terrazzo. GCT Block Restoration This project will aesthetically enhance the Block Areas and provide a better experience for MNR riders. The advantages of the project are restoring the critical areas of the train shed and the potential to generate additional advertising income. Upper level nearly complete and lower level underway. Page 131

9 GCT Elevator Project The ten existing (3,500 pound capacity) passenger elevators (3 -"A" Hall, 4 - "D" Hall and 3 - "B" Hall) needed extensive rehabilitation and upgrading to meet current life safety codes and ADA requirements. Project has been completed. Replacement of the swing doors to revolving doors to the Biltmore Room street entrance. (43 rd St and Vanderbilt) This project slated for 2012, is to replace three existing sets of swing doors that have outlived their useful life and are in need of repair, to three new revolving doors and two new swing doors at sidewalk level at the entrance to the Biltmore Room. The new revolving doors will improve pedestrian flow and improve the efficiencies of the cooling and heating systems. Page 132