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

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.

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

FEATURED VIDEO

11 Comments

1. medicci37

Posts: 1361; Member since: Nov 19, 2011

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

2. cnwwyo

Posts: 126; Member since: May 26, 2011

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

3. androidsbiggestfan

Posts: 76; Member since: Aug 09, 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!

4. antifanboy

Posts: 67; Member since: Dec 06, 2011

1 2 3 Trolls This is like shooting fish in a barrel

5. hybris

Posts: 56; Member since: Dec 05, 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.

6. JGuinan007

Posts: 699; Member since: May 19, 2011

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

7. richardyarrell2011

Posts: 510; Member since: Mar 16, 2011

Piss on iphone users and apple

8. Doakie

Posts: 2478; Member since: May 06, 2009

The favoritism that is paid to Apple makes me sick.

9. remixfa

Posts: 14605; Member since: Dec 19, 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

10. J-LoTheGreat

Posts: 32; Member since: Oct 07, 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???

11. gotti88

Posts: 101; Member since: Jul 06, 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

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.