According to a new report from the New York Post, Apple is looking to expand on its iconic Fifth Avenue retail location. While the company renovates the historic cube designed building, it will open in “some or all” of the 61,000-square foot FAO Schwarz space in the GM building. The report notes, however, that the temporary expansion could turn in to a permanent one seeing as how cramped the Fifth Avenue store has become.
The issue, however, is that Apple feels as if it shouldn’t have to the going-rate for square footage. The company argues that it is “entitled” to the FAO Schwarz space because of how it has turned its Fifth Avenue store into essentially a tourist attraction.
The going rate for the real estate is between $2,700 to $4,450 per square foot, but Apple doesn’t feel as if it should have to pay that. For what it’s worth, FAO Schwarz vacated the property because of the increasingly high rent.
Apple’s unwillingness to pay the going-rate prompted Nike to step in and start negotiating for the vacant area, but the company recently extended its lease at a Trump Organization property to 2022. So Apple could potentially now come in for a few years, at least while it works to renovate the existing crowded glass cube.
Apple’s current Fifth Avenue location is around 10,000-square-feet and brings in hundreds of millions in revenue every year. The potential for the company to expand its presence and create less of a cramped shopping experience is something that could further drive revenues.
In addition to renovating a relocating a handful of stores throughout the United States, Apple is also working to expand its presence around the globe. The company is expected to open three retail locations in India while it continues to expand its retail offerings in China at a rapid pace.
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