The Chicago landlord that owns the building where Apple's new flagship Michigan Avenue Store is located has put it up for sale, according to The Wall Street Journal.

Walton Street Capital purchased the 20,000-square-foot Apple Store, a 35-story office building, and a retail building next door for $370 million in 2017, and is now planning to sell the store and 10,000 square feet of retail space for $175 million while holding on to the office building.

applemichiganavenue
Demand for retail space is declining due to the decreasing value of malls and shopping centers as consumers turn to online shopping, but according to The Wall Street Journal, Apple Stores are the "gold standard in the retail world" because of the high foot traffic they attract to nearby locations.

A report by Green Street Advisors in 2016 found that average sales for 220 malls with Apple Stores came to $710 per square foot, compared with $630 per square foot for malls without Apple Stores. The study was based on a database that covered about 1,400 properties.

When the Apple Store sells to a new buyer, Apple doesn't have to worry about rent. Apple is well aware that its stores attract a high number of customers and it uses that as leverage to get lower rent rates. Apple is paying rent that's "well below" the average $400 to $500 charged per square foot for nearby Michigan Avenue retail space.

Apple's Michigan Avenue store is located right alongside the Chicago River, and its construction was an ambitious project for the company. It includes 32-foot glass facades and an enormous 111-by-98 foot carbon fiber roof. Like most of Apple's modern stores, it includes indoor trees, a dedicated seating area for Today at Apple sessions, a Genius Grove for getting help with products, and an area where customers can view and try Apple devices and related accesories.

Designed by longtime partner Foster + Partners, the store is meant to pay homage to Chicago's iconic Prairie Style homes designed by architect Frank Lloyd Wright.

Top Rated Comments

gaximus Avatar
90 months ago
Any reason Apple shouldn't just buy it?
Score: 6 Votes (Like | Disagree)
5105973 Avatar
90 months ago
Okay time to rummage around in the sofa cushions and see what I can come up with.
Score: 6 Votes (Like | Disagree)
venusboy Avatar
90 months ago
Wouldn’t surprise me if Samsung bought it
Score: 4 Votes (Like | Disagree)
AngerDanger Avatar
90 months ago
Okay time to rummage around in the sofa cushions and see what I can come up with.
I can pitch in a few bucks. But if you don't want me to have majority control, I could always scale back my investment a bit.
Score: 4 Votes (Like | Disagree)
Return Zero Avatar
90 months ago
$400-$500 per sf average retail space rent in that area!!! Holy $#!7, no wonder retail is losing ground to the internet.
Score: 3 Votes (Like | Disagree)
ChrisA Avatar
90 months ago
Any reason Apple shouldn't just buy it?
You are asking why Apple does not invest in real estate. Because Apple can get a better return of it's money by investing product development.
Score: 2 Votes (Like | Disagree)

Popular Stories

iOS 18

iOS 18.4 Will Include These New Features for Your iPhone

Wednesday February 5, 2025 7:15 am PST by
iOS 18.3 was released last month, so the first iOS 18.4 beta should be coming soon. iOS 18.4 is expected to be a more substantial update for the iPhone, with several new features and changes related to Apple Intelligence and beyond. Apple's website suggests that iOS 18.4 will be released in April, following beta testing. Below, we outline what to expect from the update so far. Apple...
iCloud General Feature Redux

iPhone Users Who Pay for iCloud Storage Receive an All-New Perk

Thursday February 6, 2025 11:21 am PST by
If you pay for iCloud storage on your iPhone, Apple has a new perk for you, at no additional cost. iCloud+ is the official name for Apple's paid iCloud storage plans, which range from 50GB for $0.99 per month to 12TB for $59.99 per month in the United States. iCloud+ plans already come with multiple perks for free, such as Hide My Email and HomeKit Secure Video, and now there is another one...
maxresdefault

An Apple TV Refresh is Coming in 2025 - Here's What You Should Know

Wednesday February 5, 2025 10:17 am PST by
Apple hasn't refreshed the Apple TV since 2022, but rumors suggest that we're finally going to get an update in 2025. We don't have a full picture of what to expect yet, but we have some hints on what's coming. Subscribe to the MacRumors YouTube channel for more videos. Updated A-Series Chip The current Apple TV 4K uses the A15 Bionic chip that was in the iPhone 13 lineup, and it's time for...
iPhone SE 4 Single Camera Thumb

iPhone SE 4 Launching as Soon as Next Week

Thursday February 6, 2025 3:30 pm PST by
Apple's next-generation iPhone SE could debut as soon as next week with a launch to follow later in February, reports Bloomberg's Mark Gurman. Apple isn't expected to hold an event for the iPhone SE 4, and will instead unveil the device through a press release. The iPhone SE 4 is expected to have an iPhone 14-style design, with Apple eliminating the thick bezels and Touch ID Home button of...
iOS 18

iOS 18.3.1 Update Coming Soon for iPhones

Thursday February 6, 2025 7:31 am PST by
Apple is internally testing iOS 18.3.1 for iPhones, according to our website's analytics logs, which have been a consistently reliable indicator of upcoming iOS versions. The software update should be released within the next few weeks. iOS 18.3.1 should be a minor update that addresses software bugs and/or security vulnerabilities. Apple Intelligence notification summaries for news and...
iCloud General Feature Redux

Apple Ordered by UK to Create Global iCloud Encryption Backdoor

Friday February 7, 2025 2:37 am PST by
The British government has secretly demanded that Apple give it blanket access to all encrypted user content uploaded to the cloud, reports The Washington Post. The undisclosed order is said to have been issued last month, and requires that Apple creates a back door that allows UK security officials unencumbered access to encrypted user data worldwide – an unprecedented demand not before...
disney

Disney+ Loses 700,000 Subscribers Following Price Increase

Wednesday February 5, 2025 3:34 pm PST by
Disney+ lost 700,000 subscribers worldwide in recent months, according to Disney's earnings results for the first quarter of 2025. Disney said it now has 124.6 million Disney+ subscribers, a decrease of 0.7 million compared to its subscriber numbers in the fourth quarter of 2024. The drop in subscribers comes after Disney+ prices increased in the fall. Disney+ with Ads went from $7.99 to...
Apple Leak Feature

Apple Leaker Issues Apology: 'Profound and Expensive Mistake'

Friday February 7, 2025 9:21 am PST by
Last year, we reported that Apple sued its former software engineer Andrew Aude for providing journalists with confidential information about the company's future plans, including details about the Journal app, Vision Pro headset, and more. As reported by 9to5Mac, the Superior Court of Santa Clara County on Thursday dismissed the lawsuit after Apple and Aude reached an agreement to resolve...