Apple signs 10 year deal for massive Grand Central Terminal retail store
Apple has signed a ten year deal with New York's Metropolitan Transportation Authority to open the largest Apple Store yet within Grand Central Terminal.
Originally rumored in February to be a 16,000 square foot store in the iconic rail station, Apple's retail push was said to be scrapped in March, then revived in May as a 15,230 square foot store.
In July, plans for the store were reported to be nearing approval, and today the New York Post reported that the deal is now signed.
The report states that Apple will be opening a 23,000 square foot store in Grand Central Terminal, about 3,000 square feet larger than its largest existing flagships. Most of Apple's retail stores are 3,000 to 6,000 square feet, with some mini-stores being less than 1,000 square feet.
Apple will pay the MTA $800,000 in rent annually for the station's north and northwest balconies, nearly three times as much rent as Charlie Palmer's Metrazur restaurant was paying. In ten years, Apple's rent will go up to a million dollars annually.
Apple's deal with the MTA is reportedly set for a financial committee approval on Monday, and if it passes as expected the MTA's board of directors will cast a final approval vote on Wednesday. The MTA said in a statement that the new Apple Store "has the potential to bring a great new shopping destination to iconic Grand Central Terminal and significantly increase revenues for the MTA's transportation system."
Apple will be paying to refurbish the space, and must work with New York's Landmarks Preservation Commission to get any changes to the interior of the city landmark approved.
A new Midtown Manhattan Grand Central Terminal store, located at 42nd Street and Park Avenue, would capitalize on tourist and commuter traffic using the station. Apple's highest density of retail stores is already centered in Manhattan, where the company currently operates four stores: the iconic Fifth Ave location, an Upper West Side store on Broadway, a SoHo store, and one in the Meatpacking District on West 14th Street.
Originally rumored in February to be a 16,000 square foot store in the iconic rail station, Apple's retail push was said to be scrapped in March, then revived in May as a 15,230 square foot store.
In July, plans for the store were reported to be nearing approval, and today the New York Post reported that the deal is now signed.
The report states that Apple will be opening a 23,000 square foot store in Grand Central Terminal, about 3,000 square feet larger than its largest existing flagships. Most of Apple's retail stores are 3,000 to 6,000 square feet, with some mini-stores being less than 1,000 square feet.
Apple will pay the MTA $800,000 in rent annually for the station's north and northwest balconies, nearly three times as much rent as Charlie Palmer's Metrazur restaurant was paying. In ten years, Apple's rent will go up to a million dollars annually.
Apple's deal with the MTA is reportedly set for a financial committee approval on Monday, and if it passes as expected the MTA's board of directors will cast a final approval vote on Wednesday. The MTA said in a statement that the new Apple Store "has the potential to bring a great new shopping destination to iconic Grand Central Terminal and significantly increase revenues for the MTA's transportation system."
Apple will be paying to refurbish the space, and must work with New York's Landmarks Preservation Commission to get any changes to the interior of the city landmark approved.
A new Midtown Manhattan Grand Central Terminal store, located at 42nd Street and Park Avenue, would capitalize on tourist and commuter traffic using the station. Apple's highest density of retail stores is already centered in Manhattan, where the company currently operates four stores: the iconic Fifth Ave location, an Upper West Side store on Broadway, a SoHo store, and one in the Meatpacking District on West 14th Street.
Comments
$2,192 per day rent seems low for 23,000 square feet. Whole Food or Trader Joe's might be interested at that price. It is about 50% larger, so it is more like twice what the restaurant was paying per square foot.
Apple has signed a ten year deal with New York's Metropolitan Transportation Authority to open the largest Apple Store yet within Grand Central Terminal.
what are the sizes of the others stores within Grand Central Terminal?
I like how $800,000/year breaks down to $66,666.66(67)/month.
[Dr. Evil]
Is that...evil rent?
[/Dr. Evil]
Even based on your probably inflated 23,000 square feet, it wouldn't make the top three in area.
1. Regent Street Apple store, London – 28,000 square feet
2. West 14th Street Apple store, New York – 30,000 square feet (estimated figure)
3. North Michigan Avenue Apple Store, Chicago – 24,000 square feet
http://news.worldofapple.com/archive...e-store-sizes/
"Apple has signed a ... deal ... to open the largest Apple Store yet."
Even based on your probably inflated 23,000 square feet, it wouldn't make the top three in areas.
1. Regent Street Apple store, London – 28,000 square feet
2. West 14th Street Apple store, New York – 30,000 square feet (estimated figure)
3. North Michigan Avenue Apple Store, Chicago – 24,000 square feet
http://news.worldofapple.com/archive...e-store-sizes/
if you look over the balcony it huge open space with backward stars on the ceiling
wow
This store will be crushing great for apple
A million commuters a day late for their train
Wander upstairs
40 large fully packed sky crapers with all there lunch time cabin fever e=xecs wandering down for a gourmet lunch and then up to apple store
plus ten of thousand of tourists wandering around mid town this store will be like the rockerfewller nintendo store
a tourist spot to hit
a perfect match to the 5th ave store
PS ALL of the westchester and new haven railroad clients can hop a 20 to 40 minute cool ride to midtown and visit apple before work and pick up to bring home after .
this is gonna be big
i am gonna hang up now
9
And Microsoft will open an "in your face, Apple" store right across the concourse on the opposite balcony. Not.
At the rate things are going, Apple will open a second store in the opposite concourse at Grand Central. Two on every corner, like Starbucks.
Is there any through traffic on these balconies, or do you deliberately have to go out of your way to head up there?
you can get lost trying to get there.
beam me up scotty
9
Is there any through traffic on these balconies, or do you deliberately have to go out of your way to head up there?
Oh, I'm sure there'll be modifications made and this Apple Store will become almost as or maybe more iconic as Grand Central Station itself.
At the rate things are going, Apple will open a second store in the opposite concourse at Grand Central. Two on every corner, like Starbucks.
But no Apple Store for Cupertino.
$2,192 per day rent seems low for 23,000 square feet. Whole Food or Trader Joe's might be interested at that price. It is about 50% larger, so it is more like twice what the restaurant was paying per square foot.
That's what I was thinking! I mean, the avg 1 room studio in NYC is about 650sqft and cost ... Gotta be over $1,000 .... Prob closer to 1,500 or more now a days and that's not gonna get you a room with a view in a landmark building.
Then again with the rest of retail where it is today.... I'm guessing not too many were lined up willing to do millions... Likely 10s of millions in renovation AND sign a 10 year lease. In a different time I'd bet they could a gotten 1m a year or more.
And Microsoft will open an "in your face, Apple" store right across the concourse on the opposite balcony. Not.
Of course they will
But that $800K a year is incredibly low rent for NYC: it's only $34.78/sq ft. if it's really 23,000 sq ft. (which I don't see how it can be - if the balconies are 50' wide, the store would have to be 460 linear feet long. It's clearly not.) For street level prime real-estate in Manhattan, the going rate is about $200/sq ft. For Madison Avenue above 60th street, it can be as high as $500/ sq ft. Apple got a real bargain if the numbers are correct. It's hard to believe that Metrazur was paying half that.
And for those who asked, it is not "normal" to go up to that balcony on that side of the terminal. You have to choose to walk up the steps. On the opposite side, where the Michael Jordan restaurant is, there is also a street entrance/exit, so that would have been the better location had it been available. When I was a kid, Acoustic Research used to have a listening room up there.
you can get lost trying to get there.
beam me up scotty
9
Lost getting there? You mean when ignoring the 30-foot wide staircase leading straight to the balcony space in question, right from the main floor?
But no Apple Store for Cupertino.
Selected cities only, apparently. No Apple stores are currently slated for opening inside of supermarkets either.
I'm surrounded by Apple stores, but none of them closer than an hour away, so we're also in one of Apple's black holes.
Apple will pay the MTA $800,000 in rent annually for the station's north and northwest balconies, nearly three times as much rent as Charlie Palmer's Metrazur restaurant was paying. In ten years, Apple's rent will go up to a million dollars annually.
This is terribly misleading since Apple is occupying more space then the restaurant.
Further the 23,000 SF must either be for public floor space, not including back/administrative/office space or Apple is building a two story store within the space. Covent Garden the current largest Apple store for example is 40k sf with 16k sf of it public space.