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Neiman Marcus threatens Hudson Yards Mall

30 Hudson Yards (L) and 10 Hudson Yards (R) (Credit: KPF)

The anticipated bankruptcy of Neiman Marcus could throw Related and Oxford Properties’ Hudson Yards mall into peril. The move would put the developers in the precarious position of possibly having to renegotiate the retailer’s lease and enter into conversations with other retailers whose lease agreements are tied to Neiman’s presence, BI first reported.

  • Dig Deeper: The developers provided extremely favorable lease terms as they paid for the majority of the costs for building the store’s interior. They also reached an agreement to take 5 percent of sales instead of rent in the initial three years, and 8 percent in the following two years. The parties were reportedly planning to enter into a traditional rent arrangement starting in the sixth year of the lease.
  • E-commerce was already threatening: The brand was considered such a significant selling point that several other stores in the mall reached agreements in their leases that allowed for rent discounts or lease exits if Neiman were to go. Landlords were already losing leverage before the pandemic.

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