Apple Adding More Space To Midtown Sublease
Tech behemoth Apple is beefing up its space in Midtown, adding two floors to the sublease deal it has at 11 Penn Plaza.
The company leased 220K SF at the building earlier this year and has now added an extra two floors to the deal, The Real Deal reports. That brings its space in the Vornado-owned building to a total of 336K SF, per the publication. Macy’s is the sublandlord, but it had put space on the 11th through 14th floors on the sublease market early this year, according to February press reports.
Apple’s space will be on the ninth through 14th floors, and the tech firm is paying in the mid-$60s per SF for the space in a six-year deal. Macy’s is on the hook for the lease until April 2035 and is now looking for a tenant for four floors spanning about 60K SF each.
Sublease space last quarter reached its highest share of office inventory since the Great Financial Crisis, according to a Colliers' report released last month. Overall, asking rents suffered their worst quarterly drop in more than a decade, per the report.
Tech deals have been a bright spot in an otherwise gloomy market, however, with Facebook taking 730K SF at Vornado’s Farley Building at 390 Ninth Ave. earlier this year. Reports had emerged last year that Apple, too, had been eyeing that space.
JLL’s Peter Riguardi and Martin Horner represented Apple, and Vornado had in-house representation at 11 Penn Plaza.