The Metropolitan Transportation Authority in New York has come under fire for the lease deal it gave Apple for its new Grand Central Station store, but the agency isn’t worried about an investigation launched by the state Comptroller. Instead, the MTA says it managed to land the best deal possible and even quadrupled how much is being paid for the space Apple is leasing.
State officials are curious as to why Apple managed to land a deal for only US$60 per square foot when other tenants in Grand Central Terminal are paying $200 per foot. Apple also won’t be sharing sales revenue with the agency, unlike other tenants.
The MTA isn’t worried about backlash from its lease deal with Apple
“This is the best possible deal for the MTA, quadrupling the rent we receive and bringing foot traffic to Grand Central Terminal that will increase revenue from all of our retailers,” the MTA said. “We look forward to explaining the details of this competitively bid transaction to anyone who is interested.”
State Comptroller Thomas DiNapoli isn’t convinced the MTA put together a deal that’s good for the agency. ” This is a prime property, and I intend to make sure that the MTA hasn’t given away the store,” he said.
The MTA says that Apple’s actual cost per square foot equates to about $180 since the Mac, iPhone and iPad maker is also paying for renovations and installing a new elevator. Other tenants in Grand Central Terminal are apparently fine with Apple’s lease terms because they’ll see increased traffic from shoppers drawn in to check out the new store.
Apple is set to open ints Grand Central Terminal store next Friday, December 9.
[Thanks to AppleInsider for the heads up.]