Apple Adding More Space To Midtown Sublease

11 Penn, Vornado's office building in Midtown Manhattan
Google Maps
11 Penn, Vornado's office building in Midtown Manhattan

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.

Continue reading this story with a free account

Log in or register
Related Topics: 11 Penn Plaza , Apple , Macy's , Vornado
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

Interest Rate Hike Douses Outlook For Atlanta Developers

Chicago Office Deals Feature More Scrutiny, Added Tenant Protections

Tishman Speyer Retakes Chrysler Building, Plans $235M Renovation

Activist Investor Buys Stake In Empire State Building Owner

San Francisco Office Market Climbs, Fueling Demand For Large Blocks, Luxury Space

DRA Buys Stake In 1301 Sixth Ave. At $1.3B Valuation: The N.Y. Deal Sheet

Affinius Relinquishes Big Office Building Next To Capital One Arena

Major NYC Multifamily Firm Expands With Tech-Driven Operations

One Thomas Circle, The Elevated Workplace For The Way D.C. Works

Hedge Fund Breaks NYC Record With $375-Per-SF Office Lease

Renewals Dominate In Years-Low Office Leasing Quarter

University City Office Market Improves Despite Slow Quarter In Philly