If you think your rent is expensive you might want to spare a thought for the amount Apple pays for its spectacular waterfront flagship store in Chicago.
Located on Chicago’s iconic “Magnificent Mile,” the iconic glass Apple Store with the MacBook-inspired roof costs Apple a massive $2.5 million in rent each year — and prices go up 10 percent every five years.
The figure comes from a marketing document produced as part of a current bid to sell the property. Despite Apple having spent the majority of the $80 million needed to build the store, it doesn’t actually own it (hence the whole rent-paying thing). It’s actually owned by Chicago investment firm Walton Street Capital, which it acquired around 18 months ago as part of a $360 million deal — which also included neighboring 35-story office tower at 401 N. Michigan Ave.
It’s now broken the Apple Store off from the rest of the deal, and is selling it separately to Atlanta-based investment firm Invesco for an estimated $79 million. The 20,048-square-foot Apple Store is worth so much partly because Apple has agreed to terms on a 15-year-lease. The site also reportedly includes a space riverfront space which is separately leased to a Chicago River and Lake Michigan boat tour company.
While the Chicago store is certainly a jewel in Apple’s retail store crown, there are plenty of other prize locations around the world that are home to Apple Stores. With more than 500 Apple Stores internationally, you can get a sense of just how much money Apple pays in rent every year. No wonder investors are so insistent it keeps selling record numbers of iPhones!
Source: Chicago Business