Streetview of 11 Penn Plaza, Map data © 2020 Google
After the Post first reported speculations of the deal in January, they now report that Apple will lease four floors of space at 11 Penn Plaza. Sources told the Post that the tech giant became interested in the 1.15-million-square-foot building that stretches along Seventh Avenue between West 31st and 32nd streets across from Madison Square Garden after losing out to Facebook on a spot in the Farley Building. However, those with knowledge of the deal say that Apple has only signed a five-year deal, which may suggest that they are still keen on finding a larger, more permanent home in NYC.
Building owner Vornado recently re-branded the Starrett & Van Vleck-designed 1920s building–formerly the Equitable Life Assurance Building–as Penn 11. The building’s top floors are leased by AMC. Vornado is looking for tenants to lease the fourth through 14th floors as a sublease from Macy’s. As the Post explains, Macy’s current lease doesn’t end until 2035, and they are therefore responsible for any un-leased space. Macy’s recently announced plans to close 125 department stores across the country. The company plans to vacate 11 Penn Plaza by May and is exploring plans for a 900+ foot commercial tower above its Herald Square flagship.
As for Apple, they have reportedly outgrown their current 52,000-square-foot space at 100-104 Fifth Avenue in the Flatiron District, home to its marketing division and commercial software applications unit. The deal on the table would be in the mid-$60s per square foot range according to sources, which is lower than the more than $100 per square foot asked by new office towers.
Nearby, at Vornado’s Farley Building building at 390 Ninth Avenue, Facebook snagged all 740,000 square feet of available space, reportedly because Apple only wanted a few hundred thousand feet, though that lease is still under negotiation.
Editor’s Note: This story was originally published on January 22, 2020, and has been updated to reflect new information.
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Neighborhoods : Midtown West