Apple's Fifth Avenue temporary store in NYC still drawing massive traffic next to construc...

AppleInsiderAppleInsider
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in General Discussion
Apple has pulled the glass completely off the underground venue for the New York City Fifth Avenue Store and opened up a temporary location right next door. AppleInsider visits the construction site, and the temporary store.




Renovations at the Fifth Avenue store have been underway since Jan. 20. The outlet will more than double its underground footprint from 32,000 square feet to 77,000, better coping with foot traffic, and likely expanding event possibilities even without including the Beats 1 studio that will be included at the location.




Apple is operating a temporary storefront out of a former FAO Schwarz, as seen in the pictures. At one point Apple was rumored to want the space permanently, feeling "entitled" to discounted rent because of the foot traffic its Fifth Avenue location brings in to all the surrounding merchants, and the consequent increase in rents able to be charged.



According to signage posted at the location, construction is expected to wrap up around the end of October 2018.

Comments

  • Reply 1 of 3
    suddenly newtonsuddenly newton Posts: 13,819member
    "Entitled"
    Iffy word choice.

    For land owners leasing retail space, it's all about revenue for square foot of retail space, and Apple stores are the highest around. Apple can simply cite its numbers to make their case.
    Solilkrupp
  • Reply 2 of 3
    zoetmbzoetmb Posts: 2,654member
    suddenly newton said:
    "Entitled"
    Iffy word choice.

    For land owners leasing retail space, it's all about revenue for square foot of retail space, and Apple stores are the highest around. Apple can simply cite its numbers to make their case.
    That doesn't make their case - it does the opposite.  If Apple is grossing so high a number per square foot, the landlord will claim they can pay more.   Also, the landlord doesn't give a damn about how well the other stores in the neighborhood do because of Apple unless they happen to own that space as well.    And as I remember it, there are no other stores in that building on the 58th Street side.   On the 59th St. side is a Cartier and way down on Park Avenue is a Bally Shoe store, a Jeffrey Wille jewelry store, Vertu and a Chase Bank branch, but I have my doubts that Apple traffic has any impact whatsoever on any of them.   The local dirty water hot dog vendors probably do okay though.   Maybe Apple should tell them that Apple feels entitled to some of their revenue. 

    Apple does get a discounted rent, but it's because the entire retail space (aside from the cube entrance) is in the basement.  
  • Reply 3 of 3
    SpamSandwichSpamSandwich Posts: 33,407member
    zoetmb said:
    "Entitled"
    Iffy word choice.

    For land owners leasing retail space, it's all about revenue for square foot of retail space, and Apple stores are the highest around. Apple can simply cite its numbers to make their case.
    That doesn't make their case - it does the opposite.  If Apple is grossing so high a number per square foot, the landlord will claim they can pay more.   Also, the landlord doesn't give a damn about how well the other stores in the neighborhood do because of Apple unless they happen to own that space as well.    And as I remember it, there are no other stores in that building on the 58th Street side.   On the 59th St. side is a Cartier and way down on Park Avenue is a Bally Shoe store, a Jeffrey Wille jewelry store, Vertu and a Chase Bank branch, but I have my doubts that Apple traffic has any impact whatsoever on any of them.   The local dirty water hot dog vendors probably do okay though.   Maybe Apple should tell them that Apple feels entitled to some of their revenue. 

    Apple does get a discounted rent, but it's because the entire retail space (aside from the cube entrance) is in the basement.  
    Pay more because they are bringing in records amount of traffic to the entire area? That would be a foolish move on the part of the owner of the space.

    Personally, I find it odd Apple even pays another party for the "privelege" to locate at their retail locations. Why doesn't Apple just buy up choice parcels of land to locate their stores? Malls and other businesses would spring up around them increasing the value of all of the land and other retail establishments.

    This could be a smart use of a few of those billions sitting around doing nothing, huh?
    edited July 2017 badmonk
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