Terms of Apple's Sweetheart Deal for Grand Central Terminal Retail Store Revealed

The New York Post reports on some of the details of Apple's contract with the Metropolitan Transportation Authority (MTA) for its Grand Central Terminal retail store, noting that Apple received an extremely favorable deal for the space compared to other tenants at the terminal. Among the most significant concessions made by the MTA was a lack of any revenue sharing from what has been estimated to be a potential $100 million per year sales location.

But while real estate insiders estimate the shop will rake in $100 million a year in sales, Apple won’t be sharing a nickel with Grand Central’s operator, the Metropolitan Transportation Authority.

The tech giant is the only retailer in the fast-growing retail transit hub to have such a sweet lease.

Critics likewise note that Apple’s $60-a-square-foot lease is well below what many other tenants are paying — including a future Shake Shack burger joint that will be shelling out more than $200 a square foot, according to the leases, copies of which have been obtained by The Post.

All other tenants at the terminal with the exception of a Chase ATM branch pay a percentage of their sales to the MTA once an agreed-upon threshold has been reached. The MTA has apparently been willing to sacrifice such an arrangement in order to land Apple as a tenant, projecting that the company's presence will drive increased sales at many of the over 100 other retail stores at the terminal.

apple store grand central nov29
Apple's Grand Central Terminal retail store (Thanks, Tom!)

Apple has posted digital signage advertising the forthcoming store, with The New York Post having indicated that it will be opening on December 9th.

Top Rated Comments

burjeffton Avatar
140 months ago
Yikes... this feels slimy. If it was a company like Walmart people would be rioting.
Score: 19 Votes (Like | Disagree)
jtsnyc47 Avatar
140 months ago
Sigh New York Post

The biggest determiner in the price/sq ft difference between the Apple Store and the Shake Shack is the amount of space occupied. Apple's is 23,000; SS is 2,270.

You wouldn't know that by reading the article, but we are talking about the Post here. I guess it's remarkable that the words "mangled" "toilet" or "hooker" weren't somehow worked in.
Score: 15 Votes (Like | Disagree)
kiantech Avatar
140 months ago
Rich get richer!
Score: 13 Votes (Like | Disagree)
maflynn Avatar
140 months ago
I question the legality of a public institution giving sweet heart deals like this. Doesn't seem in the best interest of the tax payers
Score: 12 Votes (Like | Disagree)
Rafterman Avatar
140 months ago
The size has no relevance, it's not like a company with $80B in the bank can't afford $200/sq. ft. anyway. The commercial value of the real estate doesn't change due to the size of the place, not where I'm from anyway.

It's a classic case of the rich getting richer, and much like Apple's $7B quarters where half the people on this site practically cream themselves and then decry Apple when they cut enormous bonuses to their executives, people will do the same here--say how great and awesome and powerful Apple is, and then complain when they give the money to the top executives at the company.

A sweetheart deal for Apple where NY is practically giving away the space. Meanwhile, NY will continue to blame its budget shortfalls on pension outlays, unions and other hardworking New Yorkers for "not doing their fair share". Even though NY is already the highest taxed state in the union :mad:
Score: 11 Votes (Like | Disagree)
mutantteenager Avatar
140 months ago
Isn't it great when public utilities bend over for big business. I feel like emptying my wallet into the hands of the next rich person I see....
Score: 8 Votes (Like | Disagree)

Popular Stories

iPhone 14 Dummies 1 Feature

Everything Rumored for Apple's September Event: iPhone 14, Apple Watch Pro and More

Friday August 12, 2022 2:34 pm PDT by
There's just about a month to go until Apple holds its annual September event focusing on new iPhone and Apple Watch models. We thought we'd take a quick look at everything that's rumored for Apple's September event to give MacRumors readers a rundown on what to expect when the first fall event rolls around. iPhone 14 The iPhone 14 can probably be described more as an "iPhone 13S" because...
iPhone 14 Pro Purple Rear Flat MacRumors Exclusive

iPhone 14 Pro Predicted to Start With Increased 256GB Storage Alongside Rumored Price Increase

Wednesday August 10, 2022 11:14 am PDT by
Earlier today, analyst Ming-Chi Kuo claimed iPhone 14 Pro models will be more expensive than iPhone 13 Pro models. Kuo did not reveal exact pricing, but he said that the average selling price of all four iPhone 14 models will increase by about 15% overall. While higher prices would be disappointing for customers, it is possible the iPhone 14 Pro and iPhone 14 Pro Max will offer increased...
iPhone 14 Pro Lineup Feature Silver

Kuo: Apple to Increase Prices of iPhone 14 Pro Models

Wednesday August 10, 2022 8:22 am PDT by
Apple plans to increase the prices of iPhone 14 Pro models compared to iPhone 13 Pro models, according to analyst Ming-Chi Kuo. Kuo did not reveal exact pricing for the iPhone 14 Pro models. However, in a tweet today, he estimated that the average selling price of the iPhone 14 lineup as a whole will increase by about 15% compared to the iPhone 13 lineup. In the United States, the iPhone...
iPhone 14 Pro Purple Front and Back MacRumors Exclusive feature

iPhone 14 Is Just a Few Weeks Away: Three Tips to Prepare for the New iPhone

Wednesday August 10, 2022 4:08 am PDT by
The launch of the new iPhone 14 is just a few weeks away, meaning millions of iPhone customers will soon upgrade their existing iPhone or perhaps get an iPhone for the first time. Exclusive MacRumors iPhone 14 Pro renders by graphic designer Ian Zelbo Whether upgrading from an older model or this is your first iPhone, we've rounded up a few tips to help you prepare for the next flagship...
z fold 4 1

Hands-On With Samsung's Latest Foldable Smartphones, the Galaxy Z Fold and Z Flip

Friday August 12, 2022 12:46 pm PDT by
Samsung this week launched its fourth-generation foldable devices, the $1,000 Galaxy Z Flip and the $1,800 Galaxy Z Fold. Though there's no sign of a comparable Apple foldable device on the horizon, rumors suggest prototypes are in the works, so we thought we'd take a look at Samsung's newest smartphones to see what Apple needs to measure up to when a foldable iPhone does come out. Subscribe ...
iPhone 14 Pro Purple Rear Flat MacRumors Exclusive

iPhone 14 Pro: Analyst Believes Storage Will Continue to Start at 128GB Despite Rumored Price Increase

Friday August 12, 2022 7:04 am PDT by
It wouldn't be the month before an iPhone launch without a few back-and-forth rumors, with the latest debate concerning iPhone 14 Pro storage. iPhone 14 Pro render by Ian Zelbo While research firm TrendForce forecasted that iPhone 14 Pro models could start with an increased 256GB of storage, Haitong International analyst Jeff Pu today forecasted that the upcoming Pro models will continue to...