The Chicago Transit Board today approved the leasing of five retail and concession spaces at CTA rail stations along the Red, Blue and Pink lines. The lease agreements, with terms for up to five years with one five-year extension option, were approved following a competitive procurement process and are expected to generate more than $700,000 in additional revenue for the CTA over the next five years.
Today’s Board action furthers the agency’s goal of bringing value-added services that benefit both customers and surrounding communities. By this fall, customers will have quick and convenient access to the new general newsstand at the Logan Square Blue Line station; Gateway Newstands at the 79th and 95th Street Red Line stations; Maui Wowi Hawaiian coffee and smoothie shop at the Belmont Red/Brown Line station and Lupito’s Juice Bar at the Damen Pink Line station.
Currently, there are 129 retail spaces at 77 CTA rail stations. In 2009, the CTA generated nearly $1.2 million in revenue through retail and concession leases.
Revenue from the lease agreements contributes to the CTA's operating budget, which is used to support day-to-day operations. The CTA receives public funding for approximately half of its total operating budget with the remainder coming from CTA fares and supplemented by revenue generated from sources such as advertising, concessions and leases.
Work to repair and improve several retail spaces near the Granville, Thorndale, Bryn Mawr and Berwyn Red Line stations is scheduled to begin this fall. Efforts to refurbish these locations have been accelerated as a result of the CTA receiving support and capital funding from the communities surrounding the stations.
The lease agreements were developed through the services of Jones Lang LaSalle, which serves as CTA’s real estate broker and is responsible for securing concessions at CTA stations and increasing efforts to establish transit-oriented development across the transit agency’s system.
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