Apple backs off Manhattan

Apple is backing off its plan to build a multi-level store on 34th St. between Fifth and Sixth avenues. According to Forbes, Apple is having second thoughts on its third retail store after leasing space from a joint venture between SL Green Realty Trust and developer Jeff Sutton. The company is reportedly wary of the location's coolness and had plans to put the site up for sublease. Previous reports indicate that Apple's third retail location would be a new 30,000-square-foot, four-story retail outlet with about 75 feet of frontage along 34th St. Reports indicate that Apple was willing to pay rent of about $5.5 million a year and go through many hoops to procure the location.

"The team had to negotiate more than six separate transactions and explore the outer reaches of the New York City building code with help of several consultants," SL Green's chief investment officer told analysts during its third-quarter conference.

The planned store was located just west of Fifth Avenue and south of the company's flagship Fifth Avenue Store location, which welcomed its one millionth visitor in mid-September. The comapny's Apple Store SoHo welcomed its five millionth visitor in April of last year.

Apple had doubts about the compatibility of its leading-edge image with that of middle-America 34th St., at least as it currently stands, the report claims. Despite neighbors such as Gap, American Eagle Outfitters, and Forever 21, Apple was turned off by the third-rate tourist merchants and rip-off artists, according to one retail broker quoted by the publication: "Unfortunately, a lot of the old 34th St.--third-rate tourist merchants and rip-off artists--still remain."

Retail experts, however, said that the store would have been profitable, but fears of a tarnished image have moved Apple sights elsewhere. The same article notes that Home Depot also abandoned plans for a store in Manhattan.

"That both Home Depot and Apple had the moxie to make major commitments to these extremely promising stores, but in the end were unable to follow through, speaks volumes about the challenges facing anyone in the search for a new way forward."

by MacNN Staff