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On the eve of its grand opening, the newest Apple Store is under investigation

Posted: , by Alan F.

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On the eve of its grand opening, the newest Apple Store is under investigation
The agency that oversees New York's MTA, the Committee on Corporations, Authorities and Commissions, is being asked to look into the deal Apple made with the MTA that allowed the former to open a new Apple Store in Grand Central Station. State Assemblywoman Linda Rosenthal said that it is important to see if the state's transit agency was able to secure a deal with Apple that was in the best interests of New York's subway, bus and train riders.

The newest Apple Store opens Friday

The newest Apple Store opens Friday

According to the New York Post, Apple's new location is expected to generate revenue of $100 million annually for the tech giant. Yet, out of the roughly 100 retailers in the building, Apple is the only one that was able to sign a lease without agreeing to a revenue sharing deal with the MTA, which is something that will certainly come up in the investigation. The 23,000 square feet that Apple has leased is under contract for ten years, and now is the largest Apple Store in existence. The location is highly desirable for a retailer with 750,000 people passing the store daily and 1,000,000 walking by on holidays. That is why the $60 a square foot that Apple is paying is of interest to the committee. That rate is far lower than what Apple's neighbors are paying, including Michael Jordan's Steakhouse on the opposite balcony.

For its part, the MTA insists that the deal with Apple is the best that could be made for the location.  The previous tenant in the location, Metrazur, was paid $2.5 million to leave the location 8 years before its lease was up and another $2.5 million for renovations. Reports say that the restaurant was paid the $5 million from the MTA, but the agency says it has been reimbursed by Apple.

The Apple Store at Grand Central Station is set to open Friday at 10am. The store closes weeknights at 9pm, 7pm on Saturday and 6pm on Sunday.

source: NYPost via BusinessInsider

11 Comments
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posted on 08 Dec 2011, 20:02 10

1. medicci37 (Posts: 716; Member since: 19 Nov 2011)


THIS COUNTRY IS GOING 2 HELL!!! Along with steve jobs!

posted on 08 Dec 2011, 20:12 2

2. cnwwyo (Posts: 126; Member since: 26 May 2011)


looooooool..........ohhhhh,.....thats all i got.....

posted on 08 Dec 2011, 20:14 5

3. androidsbiggestfan (Posts: 76; Member since: 09 Aug 2011)


Well after this and the alleged e-book price fixing (http://www.phonearena.com/news/US-DoJ-and-EU-Commission-investigating-ebook-price-fixing_id24526) the Apple is starting to look even more rotten!

posted on 08 Dec 2011, 20:33 6

4. antifanboy (banned) (Posts: 67; Member since: 06 Dec 2011)


1
2
3

Trolls

This is like shooting fish in a barrel

posted on 08 Dec 2011, 21:55 4

5. hybris (Posts: 56; Member since: 05 Dec 2011)


No revenue sharing agreement and only $60/square foot? This definitely sounds interesting. Apple is one of the richest and most profitable companies on the globe, why are they paying a significantly lower rate than other retailers in addition to no revenue sharing? This probably won't sit well with the neighboring retailers.

posted on 08 Dec 2011, 22:36 4

6. JGuinan007 (Posts: 641; Member since: 19 May 2011)


Michael Jordan is gonna be pissed and you don't want that.

posted on 08 Dec 2011, 22:36 3

7. richardyarrell2011 (banned) (Posts: 510; Member since: 16 Mar 2011)


Piss on iphone users and apple

posted on 09 Dec 2011, 03:44 2

8. Doakie (Posts: 1326; Member since: 06 May 2009)


The favoritism that is paid to Apple makes me sick.

posted on 09 Dec 2011, 07:09 2

9. remixfa (Posts: 14163; Member since: 19 Dec 2008)


Apple is not having a good couple of weeks. All these investigations, their frivolous lawsuits going down in flames, and no one is listening to their ridiculous demands for competitor designs.

Oh, well I guess it helps not to act like a shytie company and be the worlds largest shiniest douche-bag

posted on 09 Dec 2011, 07:39 2

10. J-LoTheGreat (Posts: 32; Member since: 07 Oct 2011)


Whats great about the whole thing, is that I live about 2400 miles from GCS and quite frankly it will not change my life one bit. So to all the whiny babies out there.......GET A LIFE!!!!!! Unless your life is affected by this store being in GCS, why in the world do you even care???

posted on 09 Dec 2011, 08:23 2

11. gotti88 (Posts: 101; Member since: 06 Jul 2011)


i totally agree... all this complaining and really none of you people are recieving any money from apple for complaining and crying over a dam store,,,, and this is coming from a rapid anmdroid user..... who gives a s**t about how much they pay

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