| Revenue Recognition |
Revenue Recognition The following is a summary of revenue sources for the three and nine months ended September 30, 2024 and 2023. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | | | (Amounts in thousands) | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | Lease revenues | | $ | 53,244 | | | $ | 52,954 | | | $ | 163,878 | | | $ | 155,502 | | | | | | | Parking revenue | | 1,168 | | | 1,090 | | | 3,483 | | | 3,300 | | | | | | | Tenant services | | 1,263 | | | 1,369 | | | 3,103 | | | 3,225 | | | | | | | Rental revenues | | $ | 55,675 | | | $ | 55,413 | | | $ | 170,464 | | | $ | 162,027 | | | | | |
The components of lease revenues for the three and nine months ended September 30, 2024 and 2023 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | | | (Amounts in thousands) | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | Fixed lease revenues | | $ | 35,608 | | | $ | 34,926 | | | $ | 112,542 | | | $ | 104,489 | | | | | | | Variable lease revenues | | 17,636 | | | 18,028 | | | 51,336 | | | 51,013 | | | | | | | Lease revenues | | $ | 53,244 | | | $ | 52,954 | | | $ | 163,878 | | | $ | 155,502 | | | | | |
Bloomberg L.P. (“Bloomberg”) accounted for revenue of $93,179,000 and $89,863,000 for the nine months ended September 30, 2024 and 2023, respectively, representing approximately 55% of our rental revenues in each period. No other tenant accounted for more than 10% of our rental revenues. If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition. In order to assist us in our continuing assessment of Bloomberg’s creditworthiness, we receive certain confidential financial information and metrics from Bloomberg. In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data.
On May 3, 2024, Alexander’s and Bloomberg entered into an agreement to extend the leases covering approximately 947,000 square feet at our 731 Lexington Avenue property that were scheduled to expire in February 2029 for a term of eleven years to February 2040. Upon execution of this lease extension, we paid a $32,000,000 leasing commission, of which $26,500,000 was to a third-party broker and $5,500,000 was to Vornado.
In connection with the lease extension, Bloomberg is entitled to a $113,618,000 tenant fund which is accounted for as a lease incentive under GAAP. Accordingly, during the second quarter of 2024, we recorded a deferred lease incentive asset of $113,618,000, which is amortized as a reduction to rental revenues over the remaining term of the lease, and a corresponding liability. These amounts are included in “Deferred leasing costs, net” and “Lease incentive liability,” respectively, on our consolidated balance sheet as of September 30, 2024. On December 3, 2022, IKEA closed its 112,000 square foot store at our Rego Park I property under a lease that was set to expire in December 2030. The lease included a right to terminate effective no earlier than March 16, 2026, subject to payment of rent through the termination date and an additional termination payment equal to the lesser of $10,000,000 or the amount of rent due under the remaining term. On September 27, 2023, we entered into a lease modification agreement with IKEA which accelerated its lease termination date to April 1, 2024. During the fourth quarter of 2023 and the first quarter of 2024, IKEA paid its remaining rent obligation through March 16, 2026 and the $10,000,000 termination payment.
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