Apple To Build Massive Store In Grand Central Terminal [Signed, Sealed, Delivered]

Apple To Build Massive Store In Grand Central Terminal [Signed, Sealed, Delivered]

Apple will build its biggest store yet in Grand Central Terminal, in the space currently occupied by Charlie Palmer's Metrazur restaurant on the upper balcony.

Just as we exclusively reported last year (and no one believed us), Apple will build one of its biggest retail stores yet in New York’s Grand Central Terminal.

Apple has signed a 10-year lease with New York’s Metropolitan Transportation Authority to build a whopping 23,000-square-feet store on the upper balcony, the New York Post reports.

The store will fill Grand Central’s north and north-eastern balconies, displacing Charlie Palmer’s Metrazur restaurant. It will be among Apple’s largest stores, about 3,000-5,000 square feet larger smaller than Apple’s biggest stores in London and West 14th Street.

The MTA is offering Apple a special move-in rent of $800,000 (a cool half-mill more than Charlie Palmer’s restaurant is currently paying), and then up the rent to $1 million annually. Apple will pay to refurbish the space, and the MTA estimates it will make $5 mill profit on the deal, and revitalize retail at the popular station.

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  • Chris Brunner

    They’ll have to sell a lot of Air’s & Mini’s to cover a $800K lease, but it’s not about profit, it’s about being in THAT location that is a good business move for Apple.

    -Chris
    http://friendsofmac.net

  • Mohamed ElTuhamy

    Just as we exclusively reported last year (and -on- *no one believed us)

  • Ryszard

    “…Apple will build its biggest retail store yet…”

    Even based on the probably inflated 23,000 square feet, it wouldn’t make the top three in terms of area:
    1. Regent Street Apple store, London – 28,000 square feet
    2. West 14th Street Apple store, New York – 30,000 square feet (estimated figure)
    3. North Michigan Avenue Apple Store, Chicago – 24,000 square fee

    thttp://news.worldofapple.com/…

    (Interesting that Apple Insider made the same error, just earlier…)

  • lkahney

    @Ryszard2 — thanks. my mistake. fixed it.

  • Christian Ross

    I paid $32.69 for a XBOX 360 and my mom got a 17 inch Sony laptop for $94.87 being delivered to our house tomorrow by FedEX. I will never again pay expensive retail prices at stores. I even sold a 46 inch HDTV to my boss for $650 and it only cost me $51.77 to get. Here is the website we using to get all this stuff, LiveCent.com

  • lwdesign1

    This will be incredible exposure and advertising for Apple! Yes, it’s a pot load of rent every year, but when you factor in how many hundreds of thousands of people flow through the station every single day, it’s going to do well by increasing Apple’s visibility by leaps and bounds for commuters and travelers. I’ll even wager that it will assist in the increasing adoption of Macs, iPhones and iPads in business environments, because a majority of travelers will be business people. Almost makes me want to visit New York just to see the new store when it’s completed. Can’t wait for the photos. If a restaurant can do well there, Apple should clean up.

  • orthorim

    Wow. The Grand Central Terminal is such an iconic building just on its own… just a further stepping stone for Apple to become the Tiffany’s of computer retail. Only much more profitable, of course. 
    USD 1M for 23,000 sq feet is USD 43 / sq foot / year. This report from 2006 places Apple revenue at over USD 4,000 / sq foot so it looks like this is going to be a big time earner for Apple. Revenues are not earnings of course, but Apple profit is historically near 30% so the rent looks like peanuts compared to Apple Store average earnings.Reference:http://seekingalpha.com/articl
    PS: I am unable to use the “dollar” sign here for some reason.

  • Tom Cruize

    hey there, we are selling unlock-iphonesoftware (.com) contact me please (sorry, you need Javascript to see this e-mail address)

About the author

Leander KahneyLeander Kahney is the editor and publisher of Cult of Mac. He is the NYT bestselling author of Jony Ive: The Genius Behind Apple's Greatest Products; Inside Steve’s Brain; Cult of Mac; and Cult of iPod. Leander has written for Wired, MacWeek, Scientific American, and The Guardian in London. Follow Leander on Twitter @lkahney and Facebook.

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