The on again/off again rumors surrounding an Apple Store at Grand Central appear to be on again, according to a story in today’s Wall Street Journal. The MTA will issue a request for proposals today on the current space inhabited by Metrazur, and despite steep costs, sources expect Apple to submit a response, Andrew Grossman reports today.
Grossman offers up a few details on the MTA’s attempts at extracting more money from its valuable retail spaces. Metrazur’s lease currently runs through 2019, and although the restaurant is making money, it plans to close on July 1 because the MTA, which is making only $400,000 a year off of the substantial space, is going to ask the next tenant to pay the restaurant’s owners a substantial termination fee. “It’s an offer that’s hard to refuse,” Chef Charlie Palmer said. “It’s hard to compete with whatever that company might be that’s taking the space.”
With retail experts believing that a Grand Central Apple Store could become more popular than the city’s other premiere locations, the MTA is looking for a deal focuses around a low base rent and a share of any story’s profits. The price may be steep, but for a chance to take up such a high-profile space in one of the nation’s busiest train terminals, it just be might worth. The authority too is looking to boost its own bottom line. “We believe that this special site in Grand Central Terminal can generate more revenue to support transit services,” agency spokesman Jeremy Soffin said.
7 comments
i can see major disruptions to commutes when there is a major product release. can get quite annoying unless they have strict crowd control measures
I was thinking about that, but given that its supposed to be in Metrazur’s space, its sort of out of the way. The vast majority of commuters will not get anywhere near it flowing to the subways or out the north end or simply out the other side of terminal.
There are already major commute disruptions with all those tourists and cell phone chatterboxes taking up valuable real estate in the main hall!
What we all have to keep in mind is that GCT has to sell itself. It is a tourist attraction and the more money the MTA can milk out of tourists and shoppers the better off for the MTA. Personally I dislike dealing with tourists but I understand their purpose.
Your point is well taken, however this is New York not Pittsburgh (sorry Pittsburgh.) When the MTA has a chance to maxamize it’s real estate holdings, these kinds of deals with the Apple store & other high profile businesses must be made. If you aren’t going to make the splashy deal now, when will you.
Then is Metrazur moving to another space in GCT, or to another location altogether?
Consistent with Apple Developer terms, MTA should charge Apple a relatively low rent of $0.99K per year and 1/3rd of all in-store purchases