'Cube' hurdle cleared for Apple Store in NYC
updated 01:40 pm EST, Mon December 5, 2005
Apple finalizes NYC lease
Apple has finalized the deal for another , which is expected to open in the spring of 2006. The company was able to finalize the lease for "sprawling subterranean store" in the GM building, after landlord Harry Macklowe promised Steve Jobs he could take his large $9 million glass cube with him at the end of the lease, according to New York Magazine. The report says that Jobs personally designed the 32-foot-by-32-foot box that will mark the store’s entrance on the Fifth Avenue plaza and that the structure became the sticking point at the last minute, as the developer wanted the structure to stay put; however, a compromise was reached to bring Apple to the mid-town location.
"Steve Jobs felt that he created the cube so he owned it," says Apple broker Robert Futterman, noting that Macklowe wanted it to stay put. "At the eleventh hour, that was the biggest issue." Apple was being aggressively courted by Macklowe for the prime retail location. The developer flew out to out to California twice and offered the lease for well below market rent of $1,000 per square foot for the 24,000-square-foot store. At the end of the twenty-year lease, Jobs must replace the cube with a comparable structure before hauling it off, according to NYM.
Earlier today, we noted retail openings of three international stores and three upcoming stores in the US.
$1000 per sq ft
12/05, 02:26pm reply
$24 million a month, for 20 years! a total of $5.76 BILLION DOLLARS!! And that's below market rent?
suhail
Senior User
Joined: Nov 1999
What a perfect match!
12/05, 02:28pm reply
There couldn't have been a more perfect spot for the Apple store in NYC! Right across the street from The Plaza hotel, right next door to the FAO Schwartz toy store (both structures famous from numerous movies), right on Fifth Avenue! Better exposure to Apple coludn't have been imagined, with the possible exception of, perhaps, the Times Square location (SJ: have you checked out that vacant retail space at 1 Times Square? the ball drops right there at midnight!).
vasic
Fresh-Faced Recruit
Joined: May 2005
price to rent buy highest
12/05, 02:36pm reply
Yes folk not living in New York this is one expensive town. Apartments average $1 million for a one bedroom around and sometimes under 1000 square feet. Still 12 million people call it home and couldn't imagine living anywhere else.
kerryb
Fresh-Faced Recruit
Joined: Aug 2001
$1000/sf
12/05, 03:04pm reply
Rents for commercial space are typically quoted in dollars per SqFt per year, not month. The lease would cost 24 million per year for 20 years ($480 million).
chris77845
Fresh-Faced Recruit
Joined: Dec 2005
Per month
12/05, 03:11pm reply
I've only seen real estate prices at SQFt per month. I think it really is that expensive.
realestateHunter
Fresh-Faced Recruit
Joined: Dec 2005
8 million
12/05, 03:42pm reply
8 Million people live in NYC, and 12 million are within its limits during work hours
mr100percent
Fresh-Faced Recruit
Joined: Dec 1999
re: price to rent buy hig
12/05, 05:34pm reply
[Apartments average $1 million for a one bedroom around and sometimes under 1000 square feet.]
A year? Or is that the purchase price on an apt. condo?
thesearcher
Dedicated MacNNer
Joined: Mar 2002
The Cube
12/05, 05:46pm reply
Am I the only one wondering why there's a giant glass cube there in the first place?
kapeedmaro
Banned
Joined: Nov 2005
Steve is the coolest
12/05, 07:31pm reply
Steve is just the coolest. What other CEO designs a a giant glass cube entryway for his own flagship store, considers it art and hinges the lease on keeping it after they leave???
gunnar
Dedicated MacNNer
Joined: Feb 1999
Frink Sez:
12/07, 01:09am reply
"Be careful! For all we know there could be cubes in there the size of gorillas!...."
nayr x
Forum Regular
Joined: Dec 2001