Apple Takes Additional 116K SF at 11 Penn Plaza
The tech giant inked a six-year sublease with Macy’s to take another 116,000 square feet on the ninth and 10th floors of the 23-story building between West 31st and West 32nd Streets, The Real Deal reported. Asking rent was in the mid-$60s per square foot.
Apple first took space in Vornado Realty Trust’s 1.15-million-square-foot property in February, when it signed a sublease with Macy’s for 220,000 square feet on the 11th and 14th floors. Its new deal brings Apple’s total footprint in the building to 336,000 square feet.
The Cupertino, Calif.-based Apple started negotiating for space in 11 Penn Plaza earlier this year after it lost out to social media giant Facebook at Vornado’s nearby Farley Post Office, the New York Post reported. Facebook took 730,000 square feet in the redevelopment of the landmarked post office in August.
Apple will take over the Penn Plaza space from Macy’s, which has been headquartered in the building for years. The struggling department store announced plans earlier this year to consolidate its offices around the country to New York City to cut costs.
Macy’s plans to move the majority of its operations to Long Island City, Queens — where it leased 850,000 square feet at 28-97 Jackson Avenue last year — while keeping a smaller presence near Penn Plaza at its Herald Square flagship, Crain’s New York Business reported.
JLL’s Peter Riguardi, Martin Horner and Kirill Azovtsev represented Apple in the deal, while Vornado handled it in-house. Scott Gottlieb, Liz Lash and Ross Zimbalist of CBRE represented Macy’s. Spokespeople for JLL, CBRE and Vornado declined to comment.