http://www.macnn.com/articles/08/06/13/fifth.ave.store.value/
Fifth Ave. store buffs value of NYC property
updated 08:30 pm EDT, Fri June 13, 2008
Fifth Ave store value
An instantly recognizable icon of Apple's retail presence, the Fifth Avenue "Glass Cube" store is said to have contributed to raising the value of the property it sits on by over $1 billion. ifoAppleStore reveals that Apple's $100-per-square-foot retail space, combined with other retail locations in the plaza, have helped the selling price when former owner Harry Macklowe sold the location to Boston Properties Incorporated for $2.8 billion this year.
It is rumored that Boston Properties is exploring revenue generation options, since space occupied by FAO Schwartz, for example, goes for $1000 per square-foot, vastly increased from the $71 it currently pays.
Fresh-Faced Recruit
Joined: Apr 2000
Ouch
Hopefully Steve was smart enough to sign a 99-year lease with a rate cap, because it sounds like the new landlord really wants to raise the rent... though it's a little unclear from the article exactly who's paying what.
Thankfully, the original article makes it a little clearer that implication is that rates for similar space in that area runs $1000/sq ft... but who knows how realistic this actually is, and it should only affect NEW tenants to the building as I can't imagine there isn't a rate cap on FAO's and Apple's leases. I'm sure Steve has his lawyers checking this right now :)