THE PORT AUTHORITY OF NY & NJ

Press Release Article


PORT AUTHORITY AUTHORIZES LEASE FOR UPSCALE FOOD COURT AT MIDTOWN BUS TERMINAL

Date: Dec 10, 2015
Press Release Number: 200-2015

Building on its initiatives to improve the commuter experience at the Port Authority Bus Terminal and to capitalize on its existing real estate, the Port Authority Board of Directors today authorized a lease for the creation of an upscale food court at the Bus Terminal.

The Board authorized the Port Authority Executive Director to enter into a 10-year lease in which OHM Concession Group, LLC will pay approximately $15.2 million in rent for three retail spaces totaling 5,943 square feet. OHM will use the space to construct a food court that will feature multiple diverse, high-end dining options for travelers and other bus terminal visitors. The food court will be located near the Main Ticketing Plaza in the Bus Terminal’s main level, south wing.

OHM, founded in 1997, specializes in bringing upscale retail dining concepts to transportation facilities including Boston Logan International Airport, Philadelphia International Airport, St. Louis International Airport and Indianapolis International Airport. The Port Authority Bus Terminal lease will be OHM’s first entry into the New York/New Jersey metropolitan area market, and its first lease with the Agency.

The annual rent during the lease period will be significantly higher than the rent the Agency currently collects from the three spaces’ current tenants. The leased spaces will include those currently occupied by Deli Plus, the U.S. Postal Service and Jamba Juice. Jamba Juice is currently building out a new space at the bus terminal, immediately east of its current location. The leases with Deli Plus and the USPS, both of which are in hold-over status, will be terminated effective January 31, 2016.

"This partnership marks a new milestone in our commitment to create a brighter experience and welcoming atmosphere for travelers who visit the Port Authority Bus Terminal – and to create a substantial increase in retail revenue for the public’s benefit," said Port Authority Chairman John Degnan.

The lease with OHM is expected to begin on or about February 1, 2016. The lease was brokered by Cushman & Wakefield, the global commercial real estate services firm that acts as the exclusive retail agent for the Port Authority Bus Terminal. The Port Authority has engaged Cushman & Wakefield to enhance the Bus Terminal’s retail offerings, optimize its revenues, and provide an enhanced customer experience for commuters and the neighborhood.

The partnership builds on the Port Authority’s $90 million Quality of Commute Program. Quality of Commute successes include the reduction of lines and crowding conditions and improvement of bus flow, which has led to significant reductions in customer complaints about bus delays.

Other Quality of Commute milestones include the establishment of improved cell connectivity throughout the bus terminal's South Wing, prior to the installation of Wi-Fi scheduled for later this year. In addition, the Port Authority installed two sets of new restrooms on the 2nd floor of the Bus Terminal; will complete a third set of restrooms in the South Wing's lower level; and will replace the remaining five sets of public restrooms by the end of 2016. The Port Authority also is working closely with current and prospective tenants to improve the appearance of their establishments and enhance their customer services.

Contact:
The Port Authority of New York and New Jersey
212-435-7777

Founded in 1921, the Port Authority of New York and New Jersey builds, operates, and maintains many of the most important transportation and trade infrastructure assets in the country. The agency’s network of aviation, ground, rail, and seaport facilities is among the busiest in the country, supports more than 550,000 regional jobs, and generates more than $23 billion in annual wages and $80 billion in annual economic activity. The Port Authority also owns and manages the 16-acre World Trade Center site, where the 1,776-foot-tall One World Trade Center is now the tallest skyscraper in the Western Hemisphere. The Port Authority receives no tax revenue from either the State of New York or New Jersey or from the City of New York. The agency raises the necessary funds for the improvement, construction or acquisition of its facilities primarily on its own credit. For more information, please visit http://www.panynj.gov.