“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.]
Open it up already. Did Microsoft rent space in the GCT toilet to be near the Apple store?
No room left on the mezzanine, but they could lower a painter’s scaffold from the balcony. It would hold all the inventory they’d be likely to sell
And there’s a PC Tech (MS certified) a block away
dunno, if I owned Shake Shack Burger Joint, I’d sure like it located next to an store. If I owned a funeral home, I’d like it located next to a Microshaft Store.
If I owned a funeral home, I’d like it located next to a Microshaft Store.
+∞!
Microshaft?? isn’t that just a little dongle….
It’s incredible to see Apple retail be of such stature that they are considered to be the right client to have as an anchor store. This role used to be reserved for major department stores. Amazing!
The NY Post is one of the worst papers i not the worst. They’re in another universe, as far of real news.
True, but the NY Post still is avidly consumed for other standout features: its sports and gossip pages, which provide fodder for small talk on the commute and also serve as an ongoing training manual for talking and thinking like authentic New Yorkers (not counting out-of-towners such as Brooklyn or Queens).
Murdoch’s iPad-only The Daily is a slicked-up, bowdlerized, and euroticized version of the Post (but whaddaya want for 99 cents!?)
Sweet Jobs! Not only will Apple make $$$$ from the products they sell, they’ll get the other merchants to subsidize their overhead while doing so. I want Apple on my side of any negotiations in which I participate…!
The NY Post is always trashing Apple. Besides, small spaces like Shake Shack always pay higher sq footage fees than larger retail spaces. And, Apple is an anchor tenant which every retail space is dying to attract.
Interestingly, Shake Shack has presence in Dubai and Kuwait City, while Apple does not (yet).