Apple to Open Grand Central Store Amid Controversy, Comptroller to Investigate Lease Deal
Apple is planning to launch their new store this coming week inside New York City's Grand Central Terminal.
According to a New York Post exclusive, Apple is poised to be getting the space for their store at a discount. They bought the space for $60-a-square-foot, which critics of the deal said is well below retail value.
In comparison, Shake Shack, a restaurant, will be buying space in Grand Central Terminal for $200-a-square-foot, according to the leases.
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Real estate insiders expect the electronic maker to rake up to $100 million in sales a year.
In July, directly after the signing the lease, the owners of Grand Central Terminal justified their deal by claiming the Apple store will, “generate significant new traffic” for the rest of the Terminal’s retail tenants.
Robin Abrams, an executive vice president at real estate firm Lansco, said: “I am surprised they didn’t get some kind of percentage... You’d think if they were going to do, say, $50 million in sales, the MTA would at least get some percentage of anything over that.”
Every shop and restaurant in the Terminal pays a percentage of sales to the MTA when it passes a certain point. Only one exception, a Chase branch, does not pay a percentage.
The NY Post further reported that New York State is now investigating the deal. State comptroller Thomas DiNapoli said Apple’s lease is a “cause for concern.” Grand Central Terminal is “prime property,” and he intends to make sure the MTA is not just giving away the space to Apple.
The Apple store in Grand Central Terminal is scheduled to open Dec. 9.
