The Real Deal New York

Apple likely to expand at GM Building on “temp” basis

Tech giant in talks to take part of former FAO Schwarz space

May 18, 2016 10:35AM

GM-Building-Nike

The General Motors Building and the Niketown store at 6 East 57th Street

The world’s most valuable company is looking to expand its iconic retail space at the GM Building in Midtown, but may have to settle for a temporary fix.

Apple is in talks with 767 Fifth Avenue’s owners – Boston Properties, Zhang Xin and the Safra Family – to take all or part of FAO Schwarz’ former 61,000-square-foot space, the New York Post reported, citing sources familiar with the negotiations.

Apple is looking to take over the space permanently, but is reportedly balking at paying market-rate rent, according to the Post. Rates for retail spaces in that section of Fifth Avenue range from about $2,700 to $4,450 per square foot, according the a recent Real Estate Board of New York report.

The landlords seem to have moved on, having entered into advanced talks with Nike to take over the former toy store, The Real Deal reported last month.

But Nike may not be moving in any time soon. The company recently extended its lease at the Trump Organization’s 6 West 57th Street until 2022, according to the Post.

Apple is reportedly looking to occupy the space, or part of it, in the meantime. [NYP]Ariel Stulberg

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