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Apple expands in Manhattan

11 Penn Plaza (Credit: NY Post)

Apple has signed a deal to expand its offices at Vornado Realty Trust’s 11 Penn Plaza. The company has added two additional floors to its recent 220,000 SF sublease, bringing its total occupancy to 336,000 SF, according to The Real Deal. The tech company’s offices will span the ninth through 14th floors.

  • Be Smart: Apple’s sublease from Macy’s is for just six years, with the rent in the mid-$60’s per SF. 
  • Why it matters: While Facebook, Microsoft and Google have said they would support working from home beyond the pandemic, that hasn’t appeared to have dulled their appetite for warehouses, data centers, retail stores, and even more office space, WSJ noted.
  • Macro picture: Five of the biggest property owners in the tech industry — Amazon, Facebook, Apple, Google, and Microsoft — together occupy around 589 million SF of U.S. real estate, which marks a fivefold increase from a decade ago.
  • By the numbers: Google owned $39.9 billion in real estate as of September, not including properties under development, which is up from $4 billion a decade ago. Amazon owned $39.2 billion in real estate at the end of 2019, up more than $1 billion since 2010.
  • Brokers on the Apple sublease: The tech giant was represented by Peter Riguardi and Martin Horner of JLL, while Vornado handled the deal in-house. Macy’s has Scott Gottlieb, Liz Lash and Ross Zimbalist of CBRE working on the remaining sublease on the 4th through 7th floors, which are roughly 60,000 SF each. [WSJ+TRD+CoStar]

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