From Macy’s to Apple
Apple initially leased space in 11 Penn Plaza in February 2020, occupying floors 11–14 with 220,000 square feet. By late 2020, the company subleased an additional two floors (9 and 10) from Macy's. With this latest deal, Apple has acquired floors 4 to 8, adding 61,000 square feet to its space.
Unlike its previous arrangement, Apple’s new lease isn’t a sublease from Macy's. Instead, Vornado Realty Trust, the building’s owner, restructured a 10-year lease renewal directly with Apple. The expanded lease aligns with Macy's original expiration date of 2035.
Financial and Strategic Details
Cost: Apple is reportedly paying $85 per square foot annually, which reflects the premium value of its central Manhattan location. Location Benefits: The office is centrally situated, just steps away from Penn Station, and less than a mile from Apple's flagship Fifth Avenue Store.Use of the Space
Apple has not disclosed specific plans for the additional office space. However, the expansion signals Apple's commitment to maintaining a substantial presence in New York City, leveraging the prime location for corporate operations, talent acquisition, or other initiatives.
Broader Implications
The move underscores Apple's strategy to invest in high-profile urban hubs, even as remote work reshapes corporate real estate demands. It also reflects the company's confidence in the value of its NYC operations.