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.

Related Roundup: Apple Stores
Tag: Chicago

Top Rated Comments

gaximus Avatar
40 months ago
Any reason Apple shouldn't just buy it?
Score: 6 Votes (Like | Disagree)
GrumpyMom Avatar
40 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
40 months ago
Wouldn’t surprise me if Samsung bought it
Score: 4 Votes (Like | Disagree)
AngerDanger Avatar
40 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
40 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
40 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)

Top Stories

samsung experience 1

Samsung's 'iTest' Lets You Try a Galaxy Device on Your iPhone

Thursday April 8, 2021 12:42 pm PDT by
Samsung has launched "iTest," an interactive website experience that's designed to allow iPhone users to test out Android on a Galaxy device, or "sample the other side," as Samsung puts it. Subscribe to the MacRumors YouTube channel for more videos. The iTest website is being advertised in New Zealand, according to a MacRumors reader who came across the feature. Visiting the iTest website on...
sonny 2021 ipad mini pro dummies

Leaked Dummy Units Show iPad Mini 6 With Thick Bezels and Home Button, New iPad Pro Models

Thursday April 8, 2021 2:11 am PDT by
Rumors suggest Apple will release refreshed versions of the iPad mini and iPad Pro models in the first half of this year, potentially as soon as this month, and a new leak today has provided us with a possible preview of what to expect in terms of the devices' overall design and camera prospects. Tech leaker and Apple blogger Sonny Dickson this morning shared images on Twitter showing dummy ...
apple music for artists new icon

Apple's Revamped Apple Music for Artists Icon Leads to Speculation About iOS 15 Design Plans

Tuesday April 6, 2021 1:03 pm PDT by
Apple yesterday updated its Apple Music for Artists app with some minor bug fixes and improvements, but also one other notable change -- a new icon. New icon on the right The Apple Music for Artists app now features a simpler, streamlined icon with a pinkish red music logo rather than the multicolored logo that was used before. The icon also has an embossed look that makes it stand out from...
apple find my network

Apple Announces Find My Network With Support for Third-Party Devices

Wednesday April 7, 2021 10:06 am PDT by
Apple today announced the launch of its Find My network accessory program, which is designed to allow third-party Bluetooth devices to be tracked in the Find My app right alongside your Apple devices. According to Apple, the first accessory companies to take advantage of the new Find My integration include Belkin, Chipolo, and VanMoof, with devices set to be available beginning next week. ...
new m1 chip

M1 Mac RAM and SSD Upgrades Found to Be Possible After Purchase

Tuesday April 6, 2021 5:34 am PDT by
Technicians in China have reportedly succeeded in upgrading the memory and storage of the M1 chip, suggesting that Apple's integrated custom silicon for the Mac may be more flexible than previously thought. Reports of maintenance technicians being able to expand the memory and storage of M1 Macs began circulating on Chinese social media over the weekend, but now international reports have...
Intel MBP Is Thin and Lighjt

Intel Ad for 'World's Best Processor' Features a MacBook Pro

Wednesday April 7, 2021 9:51 am PDT by
Intel has been on a relentless marketing drive against Mac computers in recent weeks, positioning them as inferior to Windows laptops powered by Intel processors. In a slight slip-up, however, Intel has accidentally used a MacBook instead of a Windows laptop in one of its newest ads to promote one of its new 11th-generation chips as "the world's best processor." The ad appeared on Reddit and ...
tmobile 5g modem

T-Mobile Launches Unlimited 5G Home Internet for $60/Month

Wednesday April 7, 2021 2:18 pm PDT by
T-Mobile today hosted an Un-carrier event where the company announced the launch of a a new 5G home internet plan, which is priced at $60 per month and offers unlimited data. The service is available to more than 30 million Americans across much of the United States, including 10 million households in rural areas not typically able to access reliable broadband. Connectivity will be either 4G ...
iMessage Android featured

Apple's Rationale for Not Bringing iMessage to Android Revealed in Legal Documents

Friday April 9, 2021 2:22 am PDT by
It's no secret that Apple sees iMessage as a big enough selling point to keep the service exclusive to Apple devices, however new court filings submitted by Epic Games in its ongoing lawsuit with the company reveal just how Apple executives have rationalized their decision not to develop a version of iMessage for Android. Apple clearly recognizes the power that iMessage has to keep users...
14

Apple Seeds Seventh Betas of iOS 14.5 and iPadOS 14.5 to Developers [Update: Public Beta Available]

Wednesday April 7, 2021 10:04 am PDT by
Apple today seeded the seventh betas of upcoming iOS 14.5 and iPadOS 14.5 updates to developers for testing purposes, with the new beta updates coming one week after Apple released the sixth iOS and iPadOS 14.5 betas. iOS and iPadOS 14.5 can be downloaded through the Apple Developer Center or over the air after the proper profile has been installed on an iPhone or iPad. iOS 14.5 is the...
ipad pro and macbook pro

iPad and MacBook Production Reportedly Delayed Due to Global Chip Shortage

Thursday April 8, 2021 2:31 am PDT by
Apple is facing a global shortage of certain components for some of its MacBook and iPad models, causing the Cupertino tech giant and its suppliers to postpone production of the products, according to a new report from Nikkei Asia. According to the report, MacBook production is being hindered due to the shortage of chips mounted onto the circuit board before final assembly, which is a key...