Cost of new Apple Store in Chicago goes from $62 million to $26.9 million in one week

Cost of new Apple Store in Chicago goes from $62 million to $26.9 million in one week
Back in October, the cost to construct Apple's new flagship Apple Store in Chicago was estimated at $62 million. Dubbed the "glass temple" thanks to its look, the 20,000 square foot structure will be made of glass, steel and wood when completed. To put the price in perspective, the well known Union Square Apple Store in San Francisco cost just one-third that amount to build.

According to the Chicago Tribune's Wednesday edition, Apple filed revised construction costs for the store on Lake Michigan that took the estimated price sharply lower. Just one week after the $62 million figure was bandied about, new filings indicated that the store was estimated to cost $26.9 million. These figures come directly from the development company that filed the paperwork.

The new store will open in October 2017, and Apple will migrate from its current location at 679 N. Michigan. Zeller Realty Group owns the property and announced plans to build the new store in November 2015. The store is being counted on to increase foot traffic for all stores in the nearby shopping area.

Apple better load up on the Windex. The new store will feature plenty of glass including some panels that will be visible to those on the Riverwalk. Check out one picture that shows the continuing construction being done on the facility, and a number of renderings that show what the facility will look like. We no doubt will be hearing much more about this location as we get closer to the launch of the new Apple Store.

One thing that we haven't heard from Apple is how the cost of the project could be reduced by $35.1 million in one week. Hopefully, Apple will explain how it was able to achieve this amazing cost-cutting ability.


source: ChicagoTribune via AppleInsider

FEATURED VIDEO

26 Comments

1. deewinc

Posts: 454; Member since: Feb 21, 2013

Apple inflating costs to build hype

2. kiko007

Posts: 7469; Member since: Feb 17, 2016

........What?

23. phldlphn unregistered

They're spending less than half of the initial estimate and you're complaining? Then again, you seem like the type to just slew comments without much thought.

3. BradyCrack

Posts: 835; Member since: Dec 29, 2015

Honestly Apple doesn't get enough credit for anything but their products. This looks beautiful!

6. SIGPRO

Posts: 2810; Member since: Oct 03, 2012

Apple should not get high credits, because their products are not highend and top quality like they used to be! Apple is just a meeeeh brand!

15. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Opinion? I think they get to much. I like the location of the older store. For one, its closer to the actual shopping area on North Michigan Ave. It's closer to places liek Water Tower and the Hancock which are popular locations. Version has a huge fancier store closer too. It's closer to nicer hoyels and restaurants. The location they are building now is roughly Kinzie St and Michigan Ave. It is right on the River and near Wacker Dr which has hotels. NBC Tower is on the same property, so is the Tribune and the Wrigley Buildings. But the only shopping here is, there is an indoor mall with Nordstrom just slightly north on the other side of Michigan. There are other stores there too. I forgot the name, I think its call NorthBridge . https://www.google.com/maps/place/Equitable+Building,+401+N+Michigan+Ave,+Chicago,+IL+60611/@41.8910242,-87.6255667,719m/data=!3m1!1e3!4m5!3m4!1s0x880e2caeb090f199:0x59416c1cc80ae2b7!8m2!3d41.8896052!4d-87.6229711?hl=en Here is a map of the location. The city has recently improved a walkway on the south side of Wacker that allows you to walk along the river on one side from Michigan Ave to Lake Street near the Merchandise Mart. But there are mostly small shops on this end of Michigan Ave. No big name places. But it is close to places like Navy Pier, there is an AMC Theatre close too and NorthWestern Hospital. The present location at Huron And Michigan gets far more foot traffic, because it right on the edge of where more stores appear on North Michigan. It closer to Water Tower and Rush streets where there is lots of Restaurant and Hotel Traffic. The hospital is even closer. It also closer to other options for transportation other than buses. You can take the "L" to Chicago and State and walk to the Apple Store in 10 minutes. Apple also has another store close at Halsted and North Ave which is a mile away by train. In both cases, those stores are all steal and glass.They look like art museums from the outside. PA please fix the location

24. phldlphn unregistered

The new location is still in a highly populated area and is intended to spur more foot traffic to bring shopping up in that district. Probably hoping to attract more store openings.

25. Rydsmith unregistered

You don't have much of a life outside of this website do you?

5. RebelwithoutaClue unregistered

I miss Chicago and Giordano's stuffed pizza *sigh*

16. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Chicago the best home for Pizza...that's for sure. Giordano's is not as popular as it once was. Gino's and Lou Malnati's have gotten more popular and this place we get foo from called DeAgostino's.

20. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

When I moved from Chicago, I certainly missed the food too. But my first 3 customers are all headquartered near Chicago. Foot Locker is in Milwaukee, Quaker (now part of Pepsico) is also here and so is ShopperTrak. The north-walk of the River has changed considerably in past years. So this is a good spot because, there are tour boats here like Wendella Boat rides. Several buses drive this route of North Michigan. It walking distance to the "L". Lots of hotels like the Sheraton and Hyatt, Swissotel is close too. Illinois Center is home of lots of big name companies, it also has condo living and nice restaurants. Navy Pier is close. IBM is nearby. Wrigley was here but has moved. Tribune has some offices here along with WGN NewsRadio and NBC. So lost of media exposure of Apple here. CBS which use to have a huge studio at McClurg and Huron, recently moved to just south of the River near City Hall. Millennium Park is not far as well. So lots of tourist traps in this area vs their present location.

21. RebelwithoutaClue unregistered

Cool didn't know you lived in Chicago. Went there last October on my holiday to see friends. And planning on making it a yearly ritual. Loved the rental too (latest Impala) and took a jet boat drive (Seadog boats I think) on Lake Michigan. Will see more coming year. And true, heard my friends complain about Giordano too, but never had stuffed pizza before. I also liked Huck finn :)

7. phonehome

Posts: 812; Member since: Dec 19, 2014

When Apple realizes that any business in Chicago needs bullet resistant glass, the price wil go back up to $62M. Let alone costs for armed security guards.

8. kerginaldo17 unregistered

Iphone Arena being Iphone Arena.What matter the costs of Apple Store?

9. ibend

Posts: 6747; Member since: Sep 30, 2014

because it's a news about technology.. and PA only post tech related news... of course they won't post this news just because it's apple store /s

10. trojan_horse

Posts: 5868; Member since: May 06, 2016

That's a fr

11. trojan_horse

Posts: 5868; Member since: May 06, 2016

That's a fragile build for the Apple Store... lol. Bullet-resistant glass would be better, considering the growing number of gun-shooting in the city where that Apple store is!!

18. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Huh? Theer aren't many gunshottings downtown. It is higher than it ever was. But goign from none to 2 isn't a huge rise to be concerned about. There is lots of cop bike, cop foot and cop horse traffic in this area. Crimes in this area are more of strong arm robberies and smash and grabs. This location Apple is moving too, would make crime easier and here is why. if the theif runs to the south side of the River, Wacker Drive has a unique feature. the street has multiple levels. Lots of places to easily hide, especially in the lowest level. The street is fairly dark, so a dark dress theft could literally hide in plain site. It offers access to other streets and is a quick run to other options for local transportation. You could run from Michigan and Wacker to the subway in 5 mins easily. Since iPhone are waterproof, you could literally jump in the river and swim to the other side and enter Lower Wacker. Also, its near the Pedway. which is a series of tunnels that link the east side of down to the loop. You can literally walk from Mich/Wacker via these tunnels and end up by City hall and never walk outside. https://www.cityofchicago.org/content/dam/city/depts/cdot/pedestrian/Pedway/PedwayMap2013.pdf Just look up the "Pedway" of Chicago and Wacker Drive too.

12. NarutoKage14

Posts: 1297; Member since: Aug 31, 2016

Knowing Apple they probably demanded to know exactly how much profit the builders were going to get. They then told to builders they would only pay them enough for 5% profit. That or a complete redesign using cheap materials.

13. ibap

Posts: 865; Member since: Sep 09, 2009

Somebody can't do arithmetic.

14. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Your location info is wrong. The store is being built by the 401 N Michigan Ave building, which sits on the Chicago River, next to the Tribune Tower. Its not on lake Michigan. Please fix that! Look at the photos. The water is the river, not the Lake. Please fix it!

17. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Actually PA, there is mor einside news to why the cost went down too. Chicago recently did some river-walk improvements, which drove the price of this area up. But then Trump drove the cost down after he placed hos name in huge letters on the side of his building and also after he got elected, the proerty has cause not of negative traffuc to come here and property values around Trump Tower have gone down. http://chicago.suntimes.com/news/kapos-jitters-about-trump-tower-property-values/ Here in this article, owners of property in the building have talked about property value since him running for election. When they first built the building, condo were goign for as much as $1M each, they have already fallen to less than $800K since this article.

19. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Since his election win, his building causes lots of negative foot traffic...which is what I tried to type and property values over here have drop significantly.

22. DavMor0069

Posts: 266; Member since: Dec 09, 2015

you are pricing it wrong!

26. enzotarece

Posts: 87; Member since: Aug 14, 2013

Apple hire all Chinese to cut costs

27. enzotarece

Posts: 87; Member since: Aug 14, 2013

Apple hire all Chinese to cut cost ;)

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.