“Apple is poised to reap a bonanza in Grand Central Terminal — but it won’t be sharing any upside with the landlord,” James Covert and Garett Sloane report for The New York Post.
“The tech giant is the only retailer in the fast-growing retail transit hub to have such a sweet lease,” Covert and Sloane report. “Apple’s $60-a-square-foot lease is well below what many other tenants are paying — including a future Shake Shack burger joint that will be shelling out more than $200 a square foot, according to the leases, copies of which have been obtained by The Post… ‘We set out to maximize the rent we receive for this space, and we’re thrilled that we were able to more than quadruple what we had been receiving previously,’ said MTA spokesman Aaron Donovan, noting that no other companies responded to its public request for proposal.”
Covert and Sloane report, “In a summary prepared in July in the wake of the Apple lease signing, the MTA justified its no-percentage rent deal by insisting that the gadget store will “generate significant new traffic” for Grand Central Terminal’s other 100 or so retail tenants. All of those shops and restaurants, with the exception of a Chase ATM branch, pay the MTA a percentage of their sales that exceed a given threshold. For every 1 percent increase in their sales, the MTA projects it will reap $500,000.”
Read more in the full article here.
MacDailyNews Take: In other words, it’s a sweet deal for the landlord, too, which directly contradicts The NY Post reporters’ opening line; a patently unsurprising move from such an esteemed publication.
[Thanks to MacDailyNews Reader “Citymark” for the heads up.]