Biz Herman/The Washington Post via Getty Images, Alex Edelman/AFP via Getty Images
- Gucci has extended its lease in Trump Tower, where it’s the biggest commercial tenant, the NYT reported.
- In 2020, the company extended its lease beyond 2026 and reduced its rent, sources told the publication.
- Gucci was paying $18.7 million in annual rent for the space in 2012, per an SEC filing.
- Visit the Business section of Insider for more stories.
Luxury fashion retailer Gucci won’t be leaving Manhattan’s Trump Tower any time soon.
That’s according to a report in the The New York Times detailing a deal from 2020 in which Gucci, the Trump Tower’s biggest commercial tenant, renegotiated and extended its lease in the building at 721-725 Fifth Avenue. The paper cited two people with knowledge of the deal.
The 20-year lease the company took in 2006 was due to expire in 2026. Gucci got a reduction in rent after agreeing to expand its lease beyond this date, the sources said.
Gucci declined to comment to the Times, and The Trump Organization did not respond to the paper’s request for comment. Gucci had asked the Trump Organization to sign confidentiality agreements regarding the terms of the lease, one person who had seen the lease told the publication.
Insider has contacted The Trump Organization and Gucci’s parent company, Kering, for comment.
Tiffany's, another luxury brand, is not renewing the lease for its 74,000-square-foot space in a different Trump-owned building in Manhattan, Bloomberg reported. The jewelers had subleased the space on East 57th Street since 2018 after previous tenants Nike left, and used it for both its headquarters and a store while its former headquarters was undergoing renovations.
Other companies are scrambling to cut ties with the former president.
Gucci paid $18.7 million in annual rent for the space
Gucci leases a nearly 50,000-square foot space spread over five floors of Trump Tower. This is around 20% of the tower's total rental space.
In 2012, the fashion brand was paying $18.7 million in annual rent for the space, at a rate of $384.40 per square foot, an SEC filing shows. This made it by far the tower's biggest rent payer, contributing nearly two-thirds of the building's annual rental income.
Shannon Coulter, who has led boycotts against companies including Molson Coors, LVMH, and New Balance because of their connections with former President Donald Trump, told The New York Times the news was "disgusting."
"They are essentially doing business with a white supremacist," she said. "That's what that decision means."
Other businesses are severing ties with the former president.
The Professional Golfer's Association of America pulled its 2022 Championship from Trump's New Jersey golf course, and e-scooter startup Lime has vowed never to give money to businesses connected to Trump or Jared Kushner.
The City of New York is also ending its business contracts with the Trump Organization, which had had managed a golf course in the Bronx as well as two ice skating rinks and the carousel in Central Park, for a combined annual revenue of around $17 million.
Trump-branded Manhattan buildings have lost more than 20% their value since he first took office.
"The Trump name is probably pretty radioactive right now," realtor Mark Cohen told Insider's Juliana Kaplan.