Apple Scored “Unique” Bargain for Grand Central Store
By on December 1st, 2011

Earlier this year, it was  confirmed  that Apple is opening a new store in New York’s Grand Central soon, and it  looks absolutely  stunning.  The store is expected to occupy 23,000 feet (crazy!). It is also expected to  generate  half-a-billion in sales a year, which is probably more than all Microsoft stores combined. That is assuming those stores generate any revenue.

Apple Store Grand Central Display

Today, The New York Post reveals some interesting tidbits  on some of the details of Apple’s contract with the Metropolitan Transportation Authority (MTA) for its Grand Central Terminal retail store, and it just goes to show Apple’s power in retail. Normally, Apple would have to pay $200 per square, but they are only paying $60 per square foot for the property. Would this be the case if these stores weren’t bringing in a boat load of revenue and foot traffic? Nope. Other tenants, such as Shake Shack restaurant are paying more than $200 per square foot!

But while real estate insiders estimate the shop will rake in $100 million a year in sales, Apple won’t be sharing a nickel with Grand Central’s operator, the Metropolitan Transportation Authority.

The tech giant is the only retailer in the fast-growing retail transit hub to have such a sweet lease.

Critics likewise note that Apple’s $60-a-square-foot lease is well below what many other tenants are paying — including a future Shake Shack burger joint that will be shelling out more than $200 a square foot, according to the leases, copies of which have been obtained by The Post.

The terms get even better for Apple. Unlike other merchants who rent space in Grand Central, Apple won’t have to pay a percentage  share of what it sells at the new storefront to New York’s Metropolitan Transportation Authority. The authority said that it agreed to allow Apple to keep all of its sales because the new store will “generate significant new traffic” for the 100 other retail tenants of Grand Central. Remember the time when Apple Stores were considered doomed? Well, now, this report goes to show that these once upon a time “doomed” stores give Apple a lot of retail power. Amazing isn’t it?

Last week, it was  reported    that store is to open soon. Rumor has it that the store will open on December 9th.

 

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Author: Parth Dhebar
Parth Dhebar is a 18 year-old entrepreneur. He is the founder of Simple Reviews, a blog focused on reviewing iPhone and iPad applications. Parth is a recognized name in the industry, known for covering Apple news. He is an editor at Techie-Buzz covering news on Apple. You can follow him on Twitter @pdparticle.

Parth Dhebar has written and can be contacted at parth@techie-buzz.com.
 
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