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.
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 â€” 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.