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08/26/2021

Westfield sues Starbucks for $5 million for not re-opening at World Trade Center

Al Urbanski
Real Estate Editor & Manager
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Starbucks WTC
Starbucks never re-opened at WTC, and Westfield is suing for back and future rent.

Charging that Starbucks violated the lease for its store at Westfield World Trade Center in New York, Unibail Rodamco Westfield has filed suit against the coffee chain for $5.2 million in back rent and future rent.

Filed in the United States District Court in New York’s Southern District, the suit charges that Starbucks failed to reopen for business in September 2020, when Gov. Andrew Cuomo announced that New York City malls could re-open with 50% occupancy limits. Westfield WTC re-opened on September 9th; Starbucks has not done business in the property since.

In May of last year, Starbucks sent letters to its landlords saying that it would require concessions regarding lease terms and base rent structures for a period of 12 months beginning on June 1, 2020.

Damages asked for by URW in the suit are the total of $145,773 in unpaid past rent and $5,055,879 in future rent under the tenure of the lease.

The lease stated that Starbucks could have terminated its stay at WTC with a written notice to URW within 30 days following the last day of its measuring period, which concluded on March 31, 2021. No such notice was ever received by URW.