Gucci extended its lease at the base of the Trump Tower and will remain the building’s largest commercial tenant, The New York Times reported Tuesday.
Gucci has leased 48,667 feet in the Trump Tower in Manhattan for 14 years. In 2020, it renegotiated its lease and decided to remain in the tower despite criticism from activists, The New York Times reported.
The company will reportedly receive a discount on rent in exchange for agreeing to keep the storefront at Trump Tower beyond 2026. Gucci is a highly desirable tenant for Trump Tower, as the company has grown in popularity since designer Alessandro Michele began dictating creative direction in 2015, according to The New York Times.
A 2012 Securities and Exchange Commission filing states that Gucci signed a 20-year lease in 2006 and paid $384.40 per square foot each month. This means Gucci gives Trump Tower $18.7 million annually, accounting for two-thirds of the Tower’s annual earnings from commercial tenants, The New York Times reported.
Income from Trump’s former reality TV show “The Apprentice” recently stopped coming in and debt payments for the Trump business are due soon. That means the retail space surrounding Trump Tower is now a lifeline and likely the Tower’s most dependable long-term revenue source, The New York Times reported. (RELATED: Gucci Apologizes For Selling ‘Blackface Sweater’)
Other companies that occupied space in the Trump Tower have decreased their amount of square footage or not renewed their leases. Nike, for example, shut down its location near the Tower in 2018 and opened a new location elsewhere. The Industrial and Commercial Bank of China also reduced its space in Trump Tower in 2019, and Tiffany plans to vacate its location, The New York Times reported.