Apple snags more space at Vornado’s 11 Penn Plaza

Tech giant subleasing 336K sf from Macy’s

New York /
Nov.November 24, 2020 04:30 PM
11 Penn Plaza and Apple CEO Tim Cook (VNO; Getty)

11 Penn Plaza and Apple CEO Tim Cook (VNO; Getty)

Apple is betting big on Midtown: The tech giant has inked a deal to expand its offices at Vornado Realty Trust’s 11 Penn Plaza.

In February, the Cupertino, California-based company signed a sublease for 220,000 square feet spanning four floors of the building. At the time, the Art Deco tower had 638,921 square feet available on the 4th through 14th floors as a sublease from Macy’s.

Now, The Real Deal has learned that Apple has added two additional floors to its lease, bringing its total occupancy to 336,000 square feet. The tech company’s offices will span the ninth through 14th floors.

Apple’s sublease is for just six years, according to the source, with the rent in the mid-$60’s per square foot.
Representatives for Apple and Vornado did not respond to requests for comment.

For the 11 Penn Plaza deal, Apple was represented by Peter Riguardi and Martin Horner of JLL, and Vornado was represented 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 square feet each. Neither JLL nor CBRE responded to requests for comment.

Macy’s will remain on the lease for its entire term, which ends in April 2035. Earlier this year, the department store moved its headquarters to the Jacx, Tishman Speyer’s office building in Long Island City.

Tech companies are clustering on Manhattan’s Far West Side: Apple previously duked it out with Facebook for space in Vornado’s renovation of the Farley Post Office building. Facebook finally won that battle, signing a deal over the summer for 740,000 square feet. The Vornado-led redevelopment includes the new Moynihan Station, as well as 120,000 square feet of shops and restaurants.

Facebook also inked a deal for 1.5 million square feet at 50 and 55 Hudson Yards, where its rent is over $100 per square foot.

And Amazon recently signed a deal for space at 410 Tenth Avenue, which SL Green recently agreed to sell to 601W Companies. The company, which previously redeveloped the nearby Starrett-Lehigh Building at 601 West 26th Street, agreed to pay $952.5 million.


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