Apple mulls permanent expansion of Fifth Avenue store, feels 'entitled' to cut-rate FAO Schwarz lea

Posted:
in General Discussion
Apple's plan to temporarily relocate its flagship Fifth Avenue store from the base of the GM building to the old FAO Schwartz location has apparently evolved into a desire to permanently occupy the space -- and without paying the going rate for rent.




According to a report from The New York Post, Apple feels "entitled" to the prime real estate because its existing Apple Store, topped by an iconic Steve Jobs-designed glass cube, has transformed the area into a global tourist attraction. Apple initially planned to temporarily take over some or all of a 61,000-square-foot space previously occupied by FAO Schwarz.

The move puts Apple in conflict with Boston Properties, owner of the GM building that houses both spaces. Apple's demands were left unreported, but the report says ground floor rental rates in that region of Fifth Avenue range from $2,700 to $4,450 per square foot, more than double what its nearby Madison area garners. The data was culled from a recently released Real Estate Board of New York report. The former FAO Schwarz plot includes about 13,000 square feet of street level real estate.

More recently, Nike expressed interest in relocating its New York flagship from a Trump Enterprises building to the FAO Schwarz vacancy. Nike's just extended the least on its existing store out to 2022, so the company's plans are not in immediately conflict with Apple's designs for a temporary outlet. If Apple decides to build out a permanent expansion, however, the two retail giants might soon be at odds.

Since opening in 2006, Apple's 24-hour Fifth Avenue flagship has become a major tourist destination and is often seen representing the company in news reports.
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Comments

  • Reply 1 of 27
    Cobra101Cobra101 Posts: 22member
    Love companies and people that have a sense of "Entitlement".
    pulseimagesjackansi
  • Reply 2 of 27
    r00fus1r00fus1 Posts: 65member
    Cobra101 said:
    Love companies and people that have a sense of "Entitlement".
    It's basically how business is done - it's all about the money (and prospects for future money).
    ration almike1jony0caliksecpte applejbdragon
  • Reply 3 of 27
    It sounded like the media was characterizing it as "entitled to." More click traffic that way.
    jay-tmattinozanton zuykovcalilatifbpnolamacguy
  • Reply 4 of 27
    ashamamashamam Posts: 3member
    I traced the 'entitlement' quote back to the original article and from what I can see no one actually made that quote, except perhaps the article author. But thats okay, works great as click bait in the title!
    baconstangjony0anton zuykovcalipatchythepiratenolamacguy[Deleted User]ai46
  • Reply 5 of 27
    dasanman69dasanman69 Posts: 13,002member
    Oh yeah because there were absolutely no tourists on Fifth Avenue before the store went up. 
    lord amhranjackansi
  • Reply 6 of 27
    sflocalsflocal Posts: 6,092member
    What's the problem if a tenant - especially an anchor tenant - asking for a "discount" to another property?  If an owner has a tenant that not only pays a lot of rent, but is an exemplary tenant, I as an owner would at least entertain the request.  There's nothing wrong with asking.  The worst that can happen is the owner saying "no", and we all move on.

    But no... Some idiot news article written by some nobody uses the word "Entitled" to describe Apple's completely innocent REQUEST and suddenly, it becomes an Apple-is-greedy piece?

    Stupid.  Already trolls are chiming in.
    bkkcanuckration almike1jony0anton zuykovcalilatifbplord amhranfotoformatnolamacguy
  • Reply 7 of 27
    revenantrevenant Posts: 621member
    ashamam said:
    I traced the 'entitlement' quote back to the original article and from what I can see no one actually made that quote, except perhaps the article author. But thats okay, works great as click bait in the title!
    since it is in single quotes, it is actually not a quote. unless it is another typographical error which this site loves.

    much like, "Nike's just extended the least on its existing store out to 2022".
    edited May 2016 anton zuykovpte apple
  • Reply 8 of 27
    dasanman69dasanman69 Posts: 13,002member
    sflocal said:
    What's the problem if a tenant - especially an anchor tenant - asking for a "discount" to another property?  If an owner has a tenant that not only pays a lot of rent, but is an exemplary tenant, I as an owner would at least entertain the request.  There's nothing wrong with asking.  The worst that can happen is the owner saying "no", and we all move on.

    But no... Some idiot news article written by some nobody uses the word "Entitled" to describe Apple's completely innocent REQUEST and suddenly, it becomes an Apple-is-greedy piece?

    Stupid.  Already trolls are chiming in.
    In the source article the word entitled is in quotation marks suggesting that the author was told that from someone she interviewed. 
    Also, if you don't have intimate knowledge of the conversations that took place don't automatically assume that it was a completely innocent request. 
  • Reply 9 of 27
    clexmanclexman Posts: 208member
    I know its 5th Ave and rent is high, but $35M - $57M a month? That's a lot of iPhones sold per minute.
    anton zuykovcaliapplejakesjbdragon
  • Reply 10 of 27
    apple ][apple ][ Posts: 9,233member
    I clicked on the link, but I didn't bother reading the article, because I had to immediately find out what a pussy whisperer was, so I clicked on that link instead.
    baconstanganton zuykov
  • Reply 11 of 27
    apple ][apple ][ Posts: 9,233member
    clexman said:
    I know its 5th Ave and rent is high, but $35M - $57M a month? That's a lot of iPhones sold per minute.
    I don't know if it's still true, but it is the #1 top selling Apple store in the world, at least it was a few years ago I think. It's probably still true, since it's open practically 24-7-365.
  • Reply 12 of 27
    dasanman69dasanman69 Posts: 13,002member
    apple ][ said:
    I clicked on the link, but I didn't bother reading the article, because I had to immediately find out what a pussy whisperer was, so I clicked on that link instead.
    Rats, I thought I had coined that term.  :D
  • Reply 13 of 27
    focherfocher Posts: 687member
    apple ][ said:
    I clicked on the link, but I didn't bother reading the article, because I had to immediately find out what a pussy whisperer was, so I clicked on that link instead.
    Care to share what your research revealed? I'm sure it's eminently more interesting than anything else that has been posted. 
  • Reply 14 of 27
    apple ][apple ][ Posts: 9,233member
    focher said:
    apple ][ said:
    I clicked on the link, but I didn't bother reading the article, because I had to immediately find out what a pussy whisperer was, so I clicked on that link instead.
    Care to share what your research revealed? I'm sure it's eminently more interesting than anything else that has been posted. 
    It was one of the top news stories on the right hand side, so I obviously had to click on it. I didn't read the entire article, but it was basically about rich housewives that are hooking up with their female trainers I think. 

    As “Primates of Park Avenue” author Wednesday Martin recounted to the Observer, a social trend has emerged in the Hamptons: Married, heterosexual women are engaging in steamy affairs with their female fitness instructors, dubbed “p—y whisperers” by the inner circle.
    edited May 2016 mike1
  • Reply 15 of 27
    mattinozmattinoz Posts: 2,299member
    In summary businesses are conducting business and may have competition from another business.
    baconstangmike1anton zuykovcalistompy
  • Reply 16 of 27
    carthusiacarthusia Posts: 583member
    clexman said:
    I know its 5th Ave and rent is high, but $35M - $57M a month? That's a lot of iPhones sold per minute.
    I think in New York (and maybe elsewhere) that price per square foot is for the year, not the month. So you would divide that number by 12.
  • Reply 17 of 27
    jfc1138jfc1138 Posts: 3,090member
    ashamam said:
    I traced the 'entitlement' quote back to the original article and from what I can see no one actually made that quote, except perhaps the article author. But thats okay, works great as click bait in the title!
    I beleive those marks also are used to signal a paraphrasing. Especially likely if a specific individual was not being quoted. 

    Though either way negotiating ploys are like that. Paying asking price immediately  is for suckers. 
    edited May 2016 stompy
  • Reply 18 of 27
    TempletonTempleton Posts: 84member
    A bargain.
  • Reply 19 of 27
    Sounds like the owner leaked info to the press in an attempt to strengthen their bargaining position.
  • Reply 20 of 27
    dasanman69dasanman69 Posts: 13,002member
    carthusia said:
    clexman said:
    I know its 5th Ave and rent is high, but $35M - $57M a month? That's a lot of iPhones sold per minute.
    I think in New York (and maybe elsewhere) that price per square foot is for the year, not the month. So you would divide that number by 12.
    You are correct. Those numbers per square foot are the yearly average. 
    cnocbui
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