A Mall's Fight to Kick Out a VR Gaming Venue

Destiny USA, a huge mall in Syracuse, New York, is in a legal battle with a virtual reality gaming company. The mall wants to evict Zero Latency, a VR gaming venue, because its lease ended a while ago. The mall says Zero Latency should have left by the end of summer, but the company is still there. Zero Latency opened in May 2023 and offers immersive gaming experiences. Players can enjoy these games alone or with friends in a large arena. The lease was for two months, and the rent was $2, 000 per month for a 5, 500-square-foot space. But when the lease ended, Destiny USA asked Zero Latency to leave. The mall even sent multiple notices, but Zero Latency refused to go. Now, Destiny USA is asking a judge to issue an eviction warrant. The mall also wants to recover the costs and interest from the unpaid rent. As of now, Zero Latency is still taking reservations for the holiday season, showing no signs of leaving. This situation is interesting because Destiny USA is one of the largest malls in the country. It's owned by Pyramid Cos. and has over 2 million square feet of retail space. But the mall is also facing financial troubles. It missed a deadline to refinance or pay off a $300 million loan in June 2024. Despite this default, the debt holders haven't taken over the mall yet. Zero Latency has over 100 venues worldwide, including 10 in the U. S. One of these venues is at the Salmon Run Mall in Watertown. The company's refusal to leave Destiny USA raises questions about lease agreements and the responsibilities of both tenants and landlords. Both Destiny USA and Zero Latency have declined to comment on the situation. It's unclear how this legal battle will play out, but it's a reminder of the complexities that can arise in commercial real estate.