The Burbank IKEA currently sits on a city-owned piece of property at 600 N. San Fernando Blvd., adjacent to the Burbank Town Center. The IKEA is also the beneficiary of a 95-year, rent-free lease from the city of which 72 years still remain. Even with the generous benefits afforded to the IKEA, they wish to move. The good news is IKEA wants to stay in Burbank and is looking to acquire a large site at 805 S. San Fernando Blvd. (near Alameda Avenue). Better yet, the Burbank Town Center is looking to acquire the property the IKEA sits on from the city of Burbank to expand its operations associated with the Town Center.
As a part of the proposed resolutions brought before the city, the owners of the Burbank Town Center asked the city to promise to buy back the IKEA site (at a premium), at any time in the next 10 years, if the IKEA chooses not to leave the current location. This is a pretty logical caveat; the Burbank Town Center doesn't want to buy a piece of property whose tenant has a 72- year rent-free lease.