It's being reported today that Apple wants to take a larger bite out of the GM Building. Apple pioneered its iconic and patented glass cube Apple Store on the Fifth Avenue plaza of the full block tower, but business in its underground location is now too cramped. Lois Weiss of the New York Post writes that Apple "also wants to take over the former FAO Schwarz space. It is likely to open in some or all of the 61,000 square-foot space on a 'temp' basis while it refreshes its underground fortress."
Yet there's a problem when it comes to a permanent expansion: Apple doesn't want to pay the asking price and feels it is "entitled" to the prime retail spot because it 'made' it a global tourist draw. Property owner Boston Properties has no interest in rolling over for Apple. While the two sides are likely to settle this impasse, you could read more about this real estate story over at New York Post here.
As a side note, the good folks over at MacDailyNews don't think much of Boston Properties position. They noted in their report today that "Before Steve Jobs, that basement was an un-rentable site of a string of retail failures. Of course, Apple not only made the area a prime retail spot, they made the location a global tourist draw. How much are those rents without the iconic Apple Store Fifth Avenue, one of the most visited, most profitable, and most photographed placed on the planet? Boston Properties would do well to quickly wake up from whatever delusions they are suffering." I'm sure that many will quietly agree with their position.
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