Apple pulls plug on plans for store near Empire State Building

[AppleInsider]

Apple has canceled plans to open an triple-decker retail store near the Empire State Building in New York City at the request of chief executive Steve Jobs, the New York Post is reporting.

The Cupertino-based company signed a 15 year lease for 21-25 West 34th Street between Fifth and Sixth avenues back in 2006 for nearly $6 million in annualized rent.

Previous reports indicated that Apple would build a two- or three-story retail store in 18,000 square foot space, which sits diagonally across from the Empire State Building.

Renderings published last October showcased a potential design for what would have been Manhattan's fourth flagship Apple shop -- a three-story outlet with glass and steel facade, marked with a large white Apple logo.

However, the New York Post now claims that Apple is looking to sublease the space, which has sat vacant for the past two years, beginning in April.

The paper cited an unnamed source as saying that Jobs looked at a run-down building across the street and said, "This is not for Apple."

The claims are similar to those published last year by the Forbes/Slatin Real Estate Report, which noted that Mac maker was having second thoughts about the location's "coolness" and was considering putting the site up for sublease.

Ismael Leyva's proposed design for an Apple retail store at W. 34th Street.

"Apple had doubts about the compatibility of its leading-edge image with that of middle-America 34th St., at least as it currently stands," the report said. It noted that while retailers like Gap, American Eagle Outfitters and Forever 21 are happily situated along the row, "unfortunately, a lot of the old 34th Street -- third-rate tourist merchants and rip-off artists -- still remain."

Apple declined to comment on the latest report, saying it has made "no announcement about that location."

[ View this article at AppleInsider.com ]

[DimMok]

Good riddance...looked like the back of an air conditioner.

[sflocal]

I wonder what the cost is to walk away from the lease. Signed in 2006 and sat vacant for two years means $12m basically blown in the wind. If the vacancy rates are bad in the area, even buying-out of the lease could be something to look into.

Probably a safe bet to keep the store-openings to a minimum at the moment. Besides, it looks like an ugly facade anyways.

[teckstud]

I thought the 4th "flagship" store was going to the former Victoria's Secret space on the Upper West Side? Is that still to go ahead?

[teckstud]

Originally Posted by DimMok

Good riddance...looked like the back of an air conditioner.

If you think that's ugly- Meatpacking looks like a fluorescent garage.

[walshbj]

What happened to the Wall Street store plans?

[walshbj]

Originally Posted by teckstud

If you think that's ugly- Meatpacking looks like a fluorescent garage.

I thought Meatpacking looked cool in the photos. Seems like they really needed it to be BIG. I haven't been to that one in person though.

[bsenka]

Six million a year in rent and they let it sit empty for two years? Are the shareholders OK with that kind of waste? Are consumers wondering how much of the cost of their iMac or Macbook Pro is attributable to wasteful spending like that?

[dizzy13]

Originally Posted by bsenka

Six million a year in rent and they let it sit empty for two years? Are the shareholders OK with that kind of waste? Are consumers wondering how much of the cost of their iMac or Macbook Pro is attributable to wasteful spending like that?

It's not ideal, but the amount of money they make that's a drop in the bucket.

I'm getting a new apple store in Miami though at Dadeland mall, opens saturday! So now the greater Miami area will have 4 stores! We are on the Apple map

[mrrish]

12 million in lost rent is only .04% of the company's present total surplus. Perhaps they were hoping to squat the property in hopes of improvement of the nearby neighborhood over 2 years? I think it may been a worthy gamble at the time.

[iVlad]

I think apple really needs east coast headquarters. Or even make their own skyscraper like Bank Of America is finishing now. Its the greenest building on the block. Apple could use the recycled metals from its computers and ipods for some sort of structure. That would be crazy.


ahhh....anyway

[Kolchak]

If Apple wants a high profile, cutting edge location, when are they going to open a store in Times Square? They've advertised fairly often with billboards there in the past. Can't get much higher profile than the "Crossroads of the World." They can even sponsor the New Year's Eve ball drop and have it changed to a modernized version of the apple design used in the 1980s.

[dizzy13]

Originally Posted by Kolchak

If Apple wants a high profile, cutting edge location, when are they going to open a store in Times Square? They've advertised fairly often with billboards there in the past. Can't get much higher profile than the "Crossroads of the World." They can even sponsor the New Year's Eve ball drop and have it changed to a modernized version of the apple design used in the 1980s.

Times Square is such a super tourist spot they would probably have more stolen goods than sold

[NYC Apple User]

I had a hard time visualizing an Apple store in this location since the reports first surfaced, although I must admit it would be more conveniently located than any of their other stores (zillions of people come through nearby Grand Central, Penn Station, and Port Authority every day). This part of 34th street is basically a dump, though. There is a Kmart located about one block away. An Apple store here would be like dumping a Saks down in the middle of a dilapidated old strip mall.

[superkaratemonkeydeathcar]

Originally Posted by Kolchak

If Apple wants a high profile, cutting edge location, when are they going to open a store in Times Square? They've advertised fairly often with billboards there in the past. Can't get much higher profile than the "Crossroads of the World." They can even sponsor the New Year's Eve ball drop and have it changed to a modernized version of the apple design used in the 1980s.

TSQ is a little wacky.
For the last ~6-ish years, it's becoming even more like a Las Vegas strip than it's been for awhile. I've been through many^many times and lately, it's an absolutely dizzying place.

For better or worse, the Meatpacking district or Soho are more of a fit for the brand.

@teckstud: -yeah the UWS would be most logical based on where they are already.

[bsenka]

Originally Posted by dizzy13

It's not ideal, but the amount of money they make that's a drop in the bucket:

I realize that, but it's the idea that bugs me. If they are that cavalier about 12 million dollars lost, what ELSE are they wasting money on?

Yes, the profits are good, and they have a large cash surplus, but I just can't help wondering if they might have the same profits and surpluses with lower prices (especially on the mobiles) if they were more frugal with this kind of spending.

[solipsism]

Originally Posted by bsenka

I realize that, but it's the idea that bugs me. If they are that cavalier about 12 million dollars lost, what ELSE are they wasting money on?

Yes, the profits are good, and they have a large cash surplus, but I just can't help wondering if they might have the same profits and surpluses with lower prices (especially on the mobiles) if they were more frugal with this kind of spending.

There is wasteful spending and financial business mistakes made all the time. If the most we can find on Apple is $100k to support No on Prop 8 and $12M on an unused building that was leased prior to an economic collapse, I think Apple is doing well.

[3goldens]

smart move, they need another store in ny like they need a hole in the head.

they already have three, retailers that aggressively expand their retail operations suffer an early demise.

[solipsism]

Originally Posted by 3goldens

retailers that aggressively expand their retail operations suffer an early demise.

I wouldn't say that. I'd say that retailers that unintelligently expand their retail operations, aggressively or otherwise, suffer from poor sales sq ft. Gateway suffered this fate by not having product in store and by buying in cheap areas with poor foot traffic.

We know that Apple stores started out getting more revenue per sq ft than any other retailer. Despite their growth they have increased that lead. It seems that NYC Apple Stores are very busy, perhaps enough to warrant another one without lessening the average revenue per store, at least before the economic situation took hold.

I look forward to sales results after the holiday quarter.

[paxman]

Originally Posted by solipsism

There is wasteful spending and financial business mistakes made all the time. If the most we can find on Apple is $100k to support No on Prop 8 and $12M on an unused building that was leased prior to an economic collapse, I think Apple is doing well.

Except that Apple's support of the No stance against prop 8 is not a negative. I thought we'd (you'd) laid that one to rest

[AHeneen]

Ahem...why exactly does NYC need yet another Apple store? What's wrong with them that they can't hop on the subway and take a 20 minute ride to the Apple store? Maybe Apple should be putting stores in more markets and expanding their sales base???

For Apple being such a liberal company, why are they building so many stores where there's good public transportation? How about building stores so people drive less? Where's Al Gore speaking up about this??????

[solipsism]

Originally Posted by paxman

Except that Apple's support of the No stance against prop 8 is not a negative. I thought we'd (you'd) laid that one to rest

I'm not sure I follow. 'No' means against, which is a negative stance to the prop. But it's a positive stance on civil rights.

[blogorant]

It's crap like this that gives Apple a bad name, Steve. Apple is not a social movement, it's not a lifestyle, it's not a way of life, it's not a work of art.

It's a computer. A very cool (and expensive) computer but at the end of the day still just a computer.

Why not open the store and positively impact the neighborhood rather than worry about what the neighborhood is going to do to Apple. Did we think that hard when we opened the Apple Store in Wauwatosa, Wisconsin?

[blogorant]

Originally Posted by solipsism

I'm not sure I follow. 'No' means against, which is a negative stance to the prop. But it's a positive stance on civil rights.

Apple had no business involving its business in California Prop 8, period. Regardless of ones viewpoint the matter is on the California ballot to be decided by California voters. No business should have involved itself or its resources in either promoting or attempting to defeat Prop 8.

[teckstud]

Originally Posted by blogorant

Apple had no business involving its business in California Prop 8, period. Regardless of ones viewpoint the matter is on the California ballot to be decided by California voters. No business should have involved itself or its resources in either promoting or attempting to defeat Prop 8.

Don't take his bait- he likes dragging politics into the arena all the time. This time it's California politics when the thread is about NYC real estate.

[anantksundaram]

Originally Posted by walshbj

What happened to the Wall Street store plans?

What's Wall Street?

[teckstud]

Originally Posted by anantksundaram

What's Wall Street?

The Street to Nowhere.

[ianmac47]

Besides all of the "third-rate tourist merchants and rip-off artists" on 34th Street, there are all those middle-America tourists too. Mullets and Apple products just don't go together.

[robb01]

Originally Posted by teckstud

The Street to Nowhere.

_________________

[BrooklynCalico]

[QUOTE=
"Apple had doubts about the compatibility of its leading-edge image with that of middle-America 34th St., at least as it currently stands," the report said. It noted that while retailers like Gap, American Eagle Outfitters and Forever 21 are happily situated along the row, "unfortunately, a lot of the old 34th Street -- third-rate tourist merchants and rip-off artists -- still remain."[/QUOTE]

Good move; it's too bad they wasted two years at that location. I formerly worked on West 34th street (a couple of blocks away); thankfully work in downtown Brooklyn now. 34th street is great for tourists and people who work in the area.

While I agree with the post which said that three Manhattan stores are enough (I've been to Soho and West 14th street; like them both, but prefer Soho) ... it would be nice if they really wanted a fourth NYC store to put it in downtown Brooklyn. That would be accessible from almost all parts of Brooklyn via mass transit. I'm just concerned that they might stick it in Williamsburgh ... a pain to get to unless you live there. I can get to either Apple Soho or Apple West 14th st. in approximately 40 min (door to door); to get to W'burgh would be well over an hour!

[Cubit]

Originally Posted by teckstud

I thought the 4th "flagship" store was going to the former Victoria's Secret space on the Upper West Side? Is that still to go ahead?

Exactly. That's the one I was waiting for....

[El Capitan]

Originally Posted by iVlad

I think apple really needs east coast headquarters. Or even make their own skyscraper like Bank Of America is finishing now. Its the greenest building on the block. Apple could use the recycled metals from its computers and ipods for some sort of structure. That would be crazy.


ahhh....anyway

Apple has had an east coast headquarters in Manhattan for over 20 years.

It's located in the CitiCorp building although I vaguely remember hearing that they were moving to a much larger location last year.

Apple has corporate offices in most major cities.