Apple Takes an Additional 61K SF at 11 Penn Plaza

Apple (AAPL) is taking another bite out of space occupied by Macy’s as it expands its footprint at Penn 11, known to the post office as 11 Pennsylvania Plaza.

The iPhone maker inked a deal to take over 61,000 square feet from the department store, building up its office space to 460,000 square feet on the fourth through 14th floors, The Real Deal first reported. Asking rent of $85 per square foot.

But the deal does not appear to be a sublease as landlord Vornado Realty Trust (VNO) provided Apple with a 10-year renewal on its entire footprint, wrapping the additional space into the rest of its existing lease, according to TRD. Its space will now run until Macy’s lease in the property expires in 2035.

Scott Gottlieb of CBRE (CBRE) negotiated on behalf of Macy’s while David Endelman of Cushman & Wakefield (CWK) handled the deal for Apple.

Glen Weiss and Jared Silverman represented Vornado in-house.

C&W and Vornado did not immediately respond to requests for comment. A spokesperson for CBRE declined to comment.

Apple originally settled into the Midtown office tower, known as Equitable Life Assurance Building between West 31st and West 32nd streets, in February 2020 when it signed a lease with Vornado for 220,000 square feet.

When Apple decided to expand in November of that year, however, it did turn to subleasing from Macy’s to tack on an extra 116,000 square feet on the ninth and 10th floors, bringing its total to 336,000 square feet.

Mark Hallum can be reached at mhallum@commercialobserver.com.