MIAMI — Burger King Corp. has signed a long-term extension for the lease on its existing Miami headquarters, the company announced. Burger King began its lease at its current location in July 2002.
The company plans to consolidate its corporate Miami workforce by July. Burger King's corporate staff currently operates out of the Miami location as well as a facility in Coral Gables, Fla.
By extending the current lease and terminating the Coral Gables lease, the company has determined that it will save significant dollars in future rent payments and in tenant improvements and moving costs.
The company will incur approximately $7 million in expense during its fiscal 2007 fourth quarter related to the transaction, comprised primarily of a $5 million termination fee paid to the owner of the Coral Gables property. However, Burger King still expects to reach its previously announced 20 percent net income growth target, with this one-time charge included.
