Apple has significantly expanded its presence at 11 Penn Plaza, a Midtown Manhattan office building owned by Vornado Realty Trust. The tech giant has secured an additional 61,000 square feet, bringing its total occupancy to 460,000 square feet.
Apple now occupies the fourth through 14th floors of the 1.15-million-square-foot tower located on Seventh Avenue between West 31st and West 32nd streets. Previously leased by Macy’s, the tech giant had this additional space incorporated into its existing lease at an asking rent of $85 per square foot.
David Endelman of Cushman & Wakefield conducted negotiations on behalf of Apple with CBRE’s Scott Gottlieb representing Macy’s. Glen Weiss and Jared Silverman brokered the transaction in-house for the landlord.
The deal is unique in that it involved a direct lease agreement between Apple and Vornado, rather than a sublease from Macy’s. This allowed Apple to secure additional space and extend its lease term.
However, it’s worth noting that, despite the latest developments, Macy’s remains the building’s primary tenant and headquarters.
11 Penn Plaza, Manhattan, New York. Property image courtesy of CommercialEdge.com
Formerly known as the Equitable Life Assurance Building, 11 Penn Plaza is a historic landmark building designed by Starrett & Van Vleck. Originally completed in 1926, it has since undergone significant renovations to achieve LEED Gold certification. Its prime location and modern amenities make it an attractive destination for tenants.
Apple initially sought to sublease 220,000 square feet from Macy’s at 11 Penn Plaza in 2020. The asking rent at that time was in the mid-$60s per square foot.
Before settling on 11 Penn Plaza, the company had considered leasing space in another one of Vornado’s properties, the Farley Building. However, Facebook ultimately secured the entire office space within that project.
Since its initial move to 11 Penn Plaza, Apple has expanded its footprint multiple times, taking advantage of the building’s strategic location and modern amenities. The property offers convenient access to the Farley Building and its amenities, including the popular food hall and Moynihan Train Hall.
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