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Four major retail landlords are suing the city to lower their property taxes, which they say are unfairly based on their pre-pandemic rents.

According to the suit first reported by the Real Deal, owners of prime retail condos on Fifth Avenue and East 59th Street claim their property taxes are grossly overassessed because theyre based on income and expenses in 2022, which reflected leases signed prior to the pandemic.

Stores such as Harry Winston, Versace and Ikea subsequently moved out or negotiated smaller new leases.

Harry Winston, for example, relinquished three upper floors at 697 Fifth Ave., reducing the rent to landlord Vornado from $22 million to $6 million.

At  205 E. 59th St., landlord Zucker Organization lost Ikeas $2 million in annual rent after its lease expired in November.

Prominent real estate dealmakers agreed with the landlords predicament and said the city was unfairly attempting to squeeze more money from them.

The city historically does not look at these assessments  the way an investor does. Theyre not  basing it on current market rents and thats an issue, Daniel Kaplan, a senior vice-president at CBREs Investment Properties Group, told The Post.

The problem is, youre projecting rent revenue based on current rents but the tax is based on old,  higher rents.

The over-assessments not only put retail condo owners in a pickle, they also impact a sale price if theyre trying to sell, he added.

One property named in the lawsuit, the former Ikea space at 205 E. 59th St., is up for sale rather than for lease.

The decline in rents should in turn result in lower taxes due to lower imputed or realized income for these properties, said a retail broker at a different firm, who didnt want to be named:

Cushman & Wakefield leasing legend Joanne Podell noted,  Taxes are ultimately a burden for landlords and occupiers — because retailers look at the present per-square-foot rent and future costs which include  taxes over a base year.

The retail  scene was staggered after rents peaked in 2015-16  and crashed due to Covid 19 — on top of the blow from online shopping.

The Post reported this week that Kim Kardashians shapewear brand Skims leased 20,000 square feet at Oxford Properties and Crown Acquisitions 647 Fifth Ave. for 75% less than the $770 per square foot that previous tenant Versace paid.

The lawsuit says the Skims deal will bring the landlords a mere $5.5 million a year, although the city based its assessment on estimated gross income of $18 million.

Fitch recently downgraded the mortgage on  647 Fifth Ave. due to reduced rental revenue expectations.
A Department of Finance rep said the suit was under review.

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Business

UK economy grows more than expected, according to official figures

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UK economy grows more than expected, according to official figures

The UK economy showed strong growth in the first three months of the year, according to official figures.

Gross domestic product (GDP) – the standard measure of an economy’s value – grew 0.7% in the first quarter of 2025, the Office for National Statistics said.

The rise is better than expected. An increase of just 0.6% was anticipated by economists polled by the Reuters news agency.

Money blog: Reaction as UK economy grows more than expected

It’s significantly better than the three months previous, in which a slight economic expansion of just 0.1% was reported for the final quarter of 2024.

Read more:
Burberry to cut 1,700 jobs after multi-million pound loss
Co-op updates on recovery after cyber attack forced empty shelves

The ONS also said there was a small amount of growth last month, as GDP expanded 0.2% in March, which similarly beat expectations.

No growth at all had been forecast for the month.

How did the economy grow?

A large contribution to high GDP growth was an increase in output in the production sector, which rose 1.1%, driven by manufacturing and a 4% increase in water supply, the ONS said.

Also working to push up the GDP figure was 0.7% growth in the biggest part of the UK economy – the services industry.

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‘Here’s the concern with GDP figures’

Wholesale, retail and computer programming services all performed well in the quarter, as did car leasing and advertising, the ONS said.

It shows the economy was resilient, as the country headed into the global trade war sparked by President Trump’s so-called ‘liberation day’ tariff announcement on 2 April.

Welcome political news, for now

The data is welcome news for a government who have identified growing the economy as its number one priority.

Chancellor Rachel Reeves is taking the figures as a political win, saying the UK economy has grown faster than the US, Canada, France, Italy and Germany.

“Today’s growth figures show the strength and potential of the UK economy, ” she said.

“Up against a backdrop of global uncertainty, we are making the right choices now in the national interest.”

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Listen to The World with Richard Engel and Yalda Hakim every Wednesday

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Such GDP numbers may not continue into April as businesses and consumers were hit with a raft of bill rises, and Mr Trump’s tariffs fired the starting gun on a global trade war.

Last month, water, energy and council tax bills rose across the country while employers faced higher wage costs from the rise in their national insurance contributions and the minimum wage.

But above-inflation wage growth and fading consumer caution could continue to boost the economy.

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UK

UK economy grows more than expected, according to official figures

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By

UK economy grows more than expected, according to official figures

The UK economy showed strong growth in the first three months of the year, according to official figures.

Gross domestic product (GDP) – the standard measure of an economy’s value – grew 0.7% in the first quarter of 2025, the Office for National Statistics said.

The rise is better than expected. An increase of just 0.6% was anticipated by economists polled by the Reuters news agency.

Money blog: Reaction as UK economy grows more than expected

It’s significantly better than the three months previous, in which a slight economic expansion of just 0.1% was reported for the final quarter of 2024.

Read more:
Burberry to cut 1,700 jobs after multi-million pound loss
Co-op updates on recovery after cyber attack forced empty shelves

The ONS also said there was a small amount of growth last month, as GDP expanded 0.2% in March, which similarly beat expectations.

No growth at all had been forecast for the month.

How did the economy grow?

A large contribution to high GDP growth was an increase in output in the production sector, which rose 1.1%, driven by manufacturing and a 4% increase in water supply, the ONS said.

Also working to push up the GDP figure was 0.7% growth in the biggest part of the UK economy – the services industry.

Please use Chrome browser for a more accessible video player

‘Here’s the concern with GDP figures’

Wholesale, retail and computer programming services all performed well in the quarter, as did car leasing and advertising, the ONS said.

It shows the economy was resilient, as the country headed into the global trade war sparked by President Trump’s so-called ‘liberation day’ tariff announcement on 2 April.

Welcome political news, for now

The data is welcome news for a government who have identified growing the economy as its number one priority.

Chancellor Rachel Reeves is taking the figures as a political win, saying the UK economy has grown faster than the US, Canada, France, Italy and Germany.

“Today’s growth figures show the strength and potential of the UK economy, ” she said.

“Up against a backdrop of global uncertainty, we are making the right choices now in the national interest.”

Follow The World
Follow The World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

Such GDP numbers may not continue into April as businesses and consumers were hit with a raft of bill rises, and Mr Trump’s tariffs fired the starting gun on a global trade war.

Last month, water, energy and council tax bills rose across the country while employers faced higher wage costs from the rise in their national insurance contributions and the minimum wage.

But above-inflation wage growth and fading consumer caution could continue to boost the economy.

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Sports

Leafs forced to ‘look in the mirror’ after drubbing

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Leafs forced to 'look in the mirror' after drubbing

TORONTO — The Maple Leafs‘ offense was missing in action again in Game 5 of the Eastern Conference semifinals Wednesday night, as a 6-1 loss to the Florida Panthers now has Toronto facing playoff elimination.

The Leafs, who were shut out 2-0 in Game 4, didn’t score until the final two minutes of Game 5 and now trail 3-2 in the best-of-seven series after holding a 2-0 lead.

Toronto’s top skaters were, again, invisible. Auston Matthews, Mitch Marner and William Nylander have yet to record a goal in the second round. And now the Leafs will have to log consecutive wins to extend their postseason.

“I think everybody’s got to look in the mirror,” Matthews said. “Myself included. Everybody wants to be better. Everybody wants to win.”

Matthews has just three goals in the Leafs’ last 21 games. He was third on the team in regular-season scoring, with 33 goals in 67 games.

It wasn’t just Matthews, though. Toronto was lifeless from the start of Game 5 and never seemed to challenge Florida at either end of the ice.

The Panthers heavily outplayed the Leafs throughout the first period, and it was defenseman Aaron Ekblad who finally beat goaltender Joseph Woll to give Florida a 1-0 lead through 20 minutes.

While Woll kept Toronto in a tight matchup, it was clear already the Leafs were struggling to keep up with the Panthers.

“We played slow,” Toronto coach Craig Berube said. “They were fast, they were on us, they were hungrier. That’s the first period, and that sets the tone for the game. It is hard to explain it. We all need to be better, me included. You can’t start the game that way, that’s a big thing for me.”

The Panthers opened the floodgates in the second period, helped by a landslide of Leafs mistakes. Dmitry Kulikov extended Florida’s lead with a goal tipped in by Leafs forward Scott Laughton‘s stick. Then Marner’s attempt to execute a spinning backhand pass in his own zone led to a turnover in the neutral zone that was picked up by Jesper Boqvist and snapped past Woll to give Florida a 3-0 lead midway through the second frame.

Boqvist entered the lineup in Game 5 to replace the injured Evan Rodrigues, who left Sunday’s Game 4 following a hit from Leafs defenseman Oliver Ekman-Larsson.

Niko Mikkola made it 4-0 before the end of the period, giving three Florida defensemen goals on the night.

By the time A.J. Greer scored Florida’s fifth goal — the first playoff make of his career — in the third period, it was time for Toronto to make a change in net, with Woll being replaced by Matt Murray.

Frustrated fans, who had booed the Leafs off their own ice to end the second period, began throwing items onto the sheet, including a Matthews jersey. People were exiting in droves by early in the third period.

“We didn’t give them much reason to stick around,” Matthews said.

Woll finished the game with five goals on 25 shots for an .800 save percentage.

Florida wasn’t done after Woll’s departure, though, with Sam Bennett adding a power play goal to give the Panthers a 6-0 lead halfway through the third period.

Toronto’s top skaters have had no response for Florida’s suffocating pressure — or Sergei Bobrovsky‘s impressive play.

Since giving up 13 goals to Toronto through the series’ first three games, Bobrovsky has been airtight in denying the Leafs any opportunity to score.

Berube tried making adjustments. He inserted David Kampf and Nicholas Robertson into the lineup for Game 5 to try and generate a spark, and moved Max Pacioretty to the top line during the game in an effort to generate some momentum. Nothing seemed to help.

Toronto hadn’t registered a goal since 10:56 of the third period of Game 3 until Robertson put one past Bobrovsky with 90 seconds left Wednesday night. It was all too little, too late.

“Tonight, it wasn’t a good game for anybody,” Berube said. “Anybody. All of us. it was not a good game.”

Leafs defenseman Chris Tanev was quick to shoulder the burden of Toronto’s defeat, echoing a refrain heard around the locker room from players determined not to let this be the penultimate game of their season.

“I’ll take responsibility,” Tanev said. “I need to be better. If I’m a minus player [at minus-2 in Game 5], we’re probably not going to win the game. It’s on me. I’ll take responsibility for the game.”

Game 6 is Friday in Florida.

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