Grand Central Terminal, the iconic train station in New York City, is planning on unveiling a new Apple Store this Friday, December 9, 2011. This is the fifth Apple Store to be opened in Manhattan and will be 23,000-square feet in size. Apple, Inc. is paying $180 per square foot, amounting to $4,140,000 for the store to be opened.
In addition, Apple made a $2.5 million capital investment in the space with a $1.1 million annual rate that will continuously rise each year of the 10-year lease. Furthermore, Apple paid Metrazur, the restaurant that occupied their space prior to building the store, $5 million to end their lease early. According the MTA, the terms of the lease are completely fair and there are no special deals that Apple was dealt prior to building the store.
Grand Central Terminal already has 750,000 people that walk through the halls daily and 1 million people that come through during the holidays. Apple’s new store will not only provide convenience for the plethora of Apple users, but it will stimulate more purchases for the surrounding stores because of the high traffic that it will ensue.
Apple is also considered the anchor tenant of the terminal, meaning that it will not share any of its revenues with the MTA. This works in a typical mall as well, where the largest store is the main attraction, which in turn provides incentive for people to shop in the smaller stores. If you find yourself in New York City, be sure to check out this new store because it is unique in design and extremely vast in space.
About the Author: Ben Levy is a marketing associate for the law firm, JDKatz, P.C., a full-service law firm specializing in real-estate law, tax law, elder law, business law and estate planning. If you wish to learn more please visit www.jdkatz.com.
