Apple to build second Chicago flagship retail store
Following 18 months of indecision, Apple has finalized plans to build another high-profile retail store in Chicago, agreeing on the site of an old gas station in the city's Clybourn Corridor shopping district.
The move may be seen as a blow to the ongoing revival of State Street, where the electronics maker had also been scouting a location on in the distinguished Block 37 development, according to Chicago Business.
Recently, however, Apple agreed to a $700,000 per year lease on a corner lot bound by North and Clybourn avenues and Halsted Street that once housed a gas station.
The lease is reportedly only for the lot of land, where the Cupertino-based company now hopes to build a 15,000-square-foot store to be designed by local architectural firm Bohlin Cywinski Jackson.
That same firm has been responsible for a number of other flagship Apple store designs, namely the glass cube retail store in Midtown Manhattan and Chicago's original high-profile Apple Store on N. Michigan Ave, which will remain Chicago's largest by about 10,000 square feet.
The Clybourn Corridor is a sub-neighborhood of Chicago's Lincoln Park known for its dining and shopping destinations, many of which are distinguished by modern and flashy architecture. Other retailers in the corridor include Best Buy, Gap, Pier 1 Imports, Pottery Barn, Express, Ethan Allen, Crate & Barrel, and Whole Foods.
Apple has leased this lot, which currently contains the remains of an old gas station.
The Borders book store across the street is looking to sublet its retail space.
Still, the location Apple's selected doesn't guarantee instant success, according to the Chicago Business, which notes that furniture retailer Z Gallerie was recently forced to shut down its store in the district. Locally based Borders is also reportedly looking to sublet its space in the corridor, which sits adjacent to lot leased by Apple.
The move may be seen as a blow to the ongoing revival of State Street, where the electronics maker had also been scouting a location on in the distinguished Block 37 development, according to Chicago Business.
Recently, however, Apple agreed to a $700,000 per year lease on a corner lot bound by North and Clybourn avenues and Halsted Street that once housed a gas station.
The lease is reportedly only for the lot of land, where the Cupertino-based company now hopes to build a 15,000-square-foot store to be designed by local architectural firm Bohlin Cywinski Jackson.
That same firm has been responsible for a number of other flagship Apple store designs, namely the glass cube retail store in Midtown Manhattan and Chicago's original high-profile Apple Store on N. Michigan Ave, which will remain Chicago's largest by about 10,000 square feet.
The Clybourn Corridor is a sub-neighborhood of Chicago's Lincoln Park known for its dining and shopping destinations, many of which are distinguished by modern and flashy architecture. Other retailers in the corridor include Best Buy, Gap, Pier 1 Imports, Pottery Barn, Express, Ethan Allen, Crate & Barrel, and Whole Foods.
Apple has leased this lot, which currently contains the remains of an old gas station.
The Borders book store across the street is looking to sublet its retail space.
Still, the location Apple's selected doesn't guarantee instant success, according to the Chicago Business, which notes that furniture retailer Z Gallerie was recently forced to shut down its store in the district. Locally based Borders is also reportedly looking to sublet its space in the corridor, which sits adjacent to lot leased by Apple.
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Following 18 months of indecision, Apple has finalized plans to build another high-profile retail store in Chicago, agreeing on the site of an old gas station in the city's Clybourn Corridor shopping district.
The move may be seen as a blow to the ongoing revival of State Street, where the electronics maker had also been scouting a location on in the distinguished Block 37 development, according to Chicago Business.
Recently, however, Apple agreed to a $700,000 per year lease on a corner lot bound by North and Clybourn avenues and Halsted Street that once housed a gas station.
The lease is reportedly only for the lot of land, where the Cupertino-based company now hopes to build a 15,000-square-foot store to be designed by local architectural firm Bohlin Cywinski Jackson.
That same firm has been responsible for a number of other flagship Apple store designs, namely the glass cube retail store in Midtown Manhattan and Chicago's original high-profile Apple Store on N. Michigan Ave, which will remain Chicago's largest by about 10,000 square feet.
The Clybourn Corridor is a sub-neighborhood of Chicago's Lincoln Park known for its dining and shopping destinations, many of which are distinguished by modern and flashy architecture. Other retailers in the corridor include Best Buy, Gap, Pier 1 Imports, Pottery Barn, Express, Ethan Allen, Crate & Barrel, and Whole Foods.
Apple has leased this lot, which currently contains the remains of an old gas station.
The Borders book store across the street is looking to sublet its retail space.
Still, the location Apple's selected doesn't guarantee instant success, according to the Chicago Business, which notes that furniture retailer Z Gallerie was recently forced to shut down its store in the district. Locally based Borders is also reportedly looking to sublet its space in the corridor, which sits adjacent to lot leased by Apple.
[ View this article at AppleInsider.com ]
As a Chicagoan I like the location, especially since the lot is next to the Red Line's North and Clybourn rapid transit station.
An old gas station site? Yikes. In addition to lease, contracting, and construction costs: EPA mandated cleanup procedures to prevent ground contamination when removing gas station fuel tanks = $$$$$
Apple has plenty of money!
Go Bears!
Nuff said.
Don't get me wrong, the "showroom" store has tremendous value, but even big companies can only afford to operate a few of those, where sales barely keep pace with rent. These places are all about advertising.
This is a brilliant location.
Interesting. I'm not familiar with this location. At $700,000 a year, is this a spot that actually makes money, or will this be another showroom location like 5th Ave?
Don't get me wrong, the "showroom" store has tremendous value, but even big companies can only afford to operate a few of those, where sales barely keep pace with rent. These places are all about advertising.
Don't worry, each apple store makes 8 times that amount in a year.
NYC has 2 stores in the city limits and a few more within 30 minutes driving distance outside the city
NYC has 3 stores: 5th Ave (flagship), SoHo (original), and West 14th (most recent), all in Manhattan.
In addition to the stores mentioned an many others nearby, this is also walking distance from the nationally famous Steppenwolf theatre as well as a couple other theatres.
Public transportation + close to the highway + a parking garage across the street (behind borders).
This is a brilliant location.
Combined with some of the worst traffic congestion in the city. Right up there with the Fullerton/Damen/Elston intersection. Along with the huge "scars" in the landscape left behind by the abandonment of the Expo design center and the New City YMCA. Although I'm believe the later is currently being developed. The area does have a lot of high profiles stores, but the congestion is only going to get worse. Maybe Apple can get the city to fix up the Red Line stop that's there, too, as part of the deal.
I actually think the State St location would better suited for Apple. Much more foot traffic, and easy access by all of the Loop workers to stop by during lunch and after work. The Lincoln Park location will be nearly vacant during the business day, and a pain in the arse to get to on the weekends.
Combined with some of the worst traffic congestion in the city.
But that's the brilliance of choosing this location.
No one's actually going anywhere so they can hop out of their car and pop into the Apple store.
Better yet, Apple employees can pop out and walk the lanes with their iPhone, ringing up orders and someone brings it out as soon as it's rung up.
An old gas station site? Yikes. In addition to lease, contracting, and construction costs: EPA mandated cleanup procedures to prevent ground contamination when removing gas station fuel tanks = $$$$$
I would think that would be the landowner's responsibility, or was at least factored into the deal in some way. (I just bought a house with an old fuel oil tank in the back yard, so I'm dealing with that in a small way myself.)
Interesting. I'm not familiar with this location. At $700,000 a year, is this a spot that actually makes money, or will this be another showroom location like 5th Ave?
Don't get me wrong, the "showroom" store has tremendous value, but even big companies can only afford to operate a few of those, where sales barely keep pace with rent. These places are all about advertising.
When Apple first decided to open up retail stores the entire industry laughed. Dell have kiosks and Gateway having stores, and how none of that was working. But they didn't do what Dell and Gateway et al. try to do. They didn't open them up in evry cheap nook and cranny trying to get people to come to them. They did what Apple does with their machines, they started with the most trafficked wealthy areas and expanded from there. They built slowly and pointedly and in an amazingyl short time became the highest gross retail change per square feet. Beating out expensive stores like Louis Vittan and Tiffanies.
I think they have fallen a bit as they have expanded and may be at the number 2 slot, but don't think that there stores are break even or loss leader advertising campaigns. However, it is my belief that it is the Apple Stores set which allows you to play with and test Macs, not the iPod "halo effect", that is the main reason why there has been a steady move to Macs in recent years.
What I don't understand is why they are leasing the land. 700,000 a year is a lot of money why not buy a lot? What is the advantage to leasing over purchasing?
They deduct the rent and deprecate the structure on their taxes. Land can't be depreciated. Lots of advantage if your the landlord, like a free building that's also tax free. A nice one too. In the "old" days many companies. such as sears, gap and wards made substantial money with real estate holdings.