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Apple's continued plans to expand in New York City has apparently resulted in signing a new lease, with the iPhone maker taking control of 220,000 square feet of office space near Madison Square Garden.
Previously speculated in January, the agreement is to take over the 11th through 14th floors of 11 Penn Plaza, recently rebranded to "Penn 11." Along with those four floors within the Art Deco building, Apple is also said to have extra options for space on the ninth floor.
The agreement, according to sources of the New York Post, is being carried out with building owner Vornado Realty Trust, covering some of the floors currently occupied by Macy's. The department store is relocating the headquarters to Long Island City, and is subleasing its space thought to be in excess of 300,000 square feet.
Apple is thought to have secured the sublease at a price in the mid-$60 range per square foot. However, the deal is for a five-year occupancy with options to extend if needed, so Macy's will still be liable if Apple doesn't renew until its own lease ends in 2035.
There is a good chance Apple may still move out from the space after the five-year sublease is up, as report sources claim Apple is still keen to find a more permanent arrangement.
The lease signing follows after attempts by Apple to gain more space in other locations, such as the former James A. Farley Post Office, which was also recently renovated by Vornado. In early 2019, Apple was in advanced negotiations for a 60,000-square-foot space at 55 Hudson Yards, while in August 2019, reports suggested it was looking for a space in the region of 750,000 square feet.
The lease gives Apple a considerably larger amount of office space to grow within New York City. Along with seven Apple Store locations within Manhattan, it also leases 45,000 square feet of offices at 100-104 Fifth Avenue.