William Gallagher
Apple has expanded its New York City offices and is now taking up ten floors of 11 Penn Plaza in a deal that sees it occupying space vacated by Macy's.
Apple first bought space in 11 Penn Plaza, near Madison Square Garden, in February 2020. At the time, it leased 220,000 square feet for office space, which saw it occupying floors 11 through 14.
There was also an option for it to have space on the floors 9 and 10, which it took up in November 2020 by subleasing it from Macy's. Now according to Commercial Observer, Apple will occupy ten whole floors.
Apple will now be on floors 4 to 14, adding 61,000 square feet for a total of 460,000 square feet. Apple is believed to annually be paying $85 per square foot.
The deal is unusual, though, because that space was leased by Macy's, yet this is not Apple subleasing again. Instead, the Vornado Realty Trust which owns the building is said to have negotiated a 10-year renewal of Apple's lease, adding the new extra space into the existing lease contract.
Yet Apple's occupation of these further floors is now due to expire alongside Macy's original deal in 2035. The Real Deal claims that this is so that Vornado can have a direct relationship with Apple, while somehow keeping both its and Macy's leases in force.
It's not known what Apple uses the space for. However, its location means that it is centrally located in Manhattan, and near Penn Station.
The 11 Penn Plaza offices are less than a mile away from Apple's prestigious Fifth Avenue store.
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5 Comments
That’s not really far. I’ve done more than that through Manhattan many times over the years. It’s at most a 25 minute walk, depending on traffic lights. Often, it takes less time. I can make it in 15 minutes the way I walk. At any rate, the distance from the 5th ave store isn’t relevant. They’re two separate entities.
According to Apple Maps- it is a 1.7 miles to Apple Fifth Avenue and walking is estimated to take about 38 minutes. It is also just 1.3 miles and a 28 minute walk from Apple West 14th Street.
I do know that some people associated with Apple Music work in those offices. I would doubt they need al eleven floors now being leased, but I did work with someone who went to work there for Apple Music.