Apple Had 'Unfair' Advantage in Grand Central Station Deal

[Michael Essany]

Last November, MMi reported that Apple's huge contract with the Metropolitan Transportation Authority (MTA) to put an Apple Store in New York City's Grand Central Station was rumored to give Apple a significant advantage over other potential occupants hoping to move their retail outlets into the space.

At that time, The New York Post reported that Apple's lease is "well below what many other tenants are paying" — including a future Shake Shack burger establishment.

On Monday, new details came to light about this controversial deal to bring the Apple Store to Grand Central Station.

The Metropolitan Transportation Authority gave the iPad maker an unfair edge last year as Apple ruthlessly bid for its prime retail perch overlooking Grand Central Terminal, according to a scathing new report obtained by The Post.

An official audit from New York State Comptroller Thomas DiNapoli says the MTA allowed Apple to set a "daunting hurdle" for competing bidders to clear within an almost totally unrealistic 30-day window. “The competitive process followed by MTA... was at a minimum severely slanted toward Apple,” the report reads.

Although its understandable why preferential treatment would be given to Apple, the MTA denies favoritism was shown. “This audit is not fact-based, and, accordingly, their opinion is worthless,” MTA Chairman and CEO Joseph Lhota said in a statement following publication of the audit's harsh findings.

Source: NY Post

[H4CK3R]

Gosh these people spazz out about it -_- Seems Apple is always in the middle of controversy.

[Donnutt]

It seems to me that Apple will bring more customers than any other retail establishment. Why not give them preferential treatment?

[bigboyz]

I would like to read it in its entirety before casting an opinion. I have one sentence..clearly not enough to form an opinion.

[scottjl]

really, name one other realtor that would have brought in more people and had an umbrella effect for the rest of GCS? even if they got an advantage, so what? are the other stores there complaining? doubtful. would another jamba juice, or mc donald's have made such an impact? no. life goes on. don't people have other things to worry about?

[steve-z17]

Of course they're going to give the spot to Apple! Why shouldn't they....? Apple's going to bring in tons and tons of customers who will likely spend money at other shops which in turn makes money for GCS. It just makes sense, even if they have to give preferential treatment to them! People do it all day everyday.

[tridley68]

Of course they're going to give the spot to Apple! Why shouldn't they....? Apple's going to bring in tons and tons of customers who will likely spend money at other shops which in turn makes money for GCS. It just makes sense, even if they have to give preferential treatment to them! People do it all day everyday.

I could not have put it into words any better you are 100%correct!

[Mrteacup]

I don't see why this deserves controversy I mean all it is is business there are plenty of grey areas in business. This is about as illegal as discounts are to me.

[cgfusion]

People need to get a life. The only complainers are Non Apple closed minded people. Why didn't they open a "Droid" store, oh that's right....there ain't one!

[Parana6]

People need to get a life. The only complainers are Non Apple closed minded people. Why didn't they open a "Droid" store, oh that's right....there ain't one!

Ditto

[Orby]

From the MTA's and the City of New York's perspective, Apple is probably their ideal tenant.

They have the highest selling (in dollars) retail stores per square foot in the United States. The sales tax receipts from those record-shattering sales, it stands to reason, would also be the highest per square foot in the USA. It's all about the revenue, my friends.

[alanjf]

Of course they're going to give the spot to Apple! Why shouldn't they....? Apple's going to bring in tons and tons of customers who will likely spend money at other shops which in turn makes money for GCS. It just makes sense, even if they have to give preferential treatment to them! People do it all day everyday.

I agree with you and others that Apple would be an anchor for other business in that area, just like how big name department stores often anchor malls and shopping centers. That is usually a good thing and the same is certainly true here. The question, however, is, should Apple be paying so much less for their lease than the other surrounding tenants? What reason is there for Apple, an extremely liquid entity, not to have the same rate as everyone else there?

[MOLUV]

iLab Factory : iPhone 5 Housings

Oh boy I really wanted something different looking, If this is gonna be the one.. Hope not