According to real-estate researcher, Green Street Advisors, the popularity of Apple’s retail outlets has enabled the Cupertino California company to leverage the success in an effort to negotiate extremely low rent rates at malls which in turn benefit from the additional foot traffic. The Cupertino California company pays as much as 2% of its sales to malls as measured by square footage, a fraction of the 15% typical tenants pay according to the report. The disparity in rent terms is explained by Apple’s ability to draw customers into its stores.

The report states that unlike customers who are visiting so-called “anchor” tenants, such as department stores, those who go to an Apple Store may be less likely to stay in the mall to browse. That being said, this hasn’t stopped an upward swing in lease prices for storefronts located next to or near Apple’s retail outlets. An Apple representative even went as far as telling the publication that Apple’s retail locations hosted about one million visitors each day and accounted for roughly 12% of the company’s $183 billion in annual sales for the fiscal year of 2014.

On average, Apple Stores generate roughly $6,000 in sales per square foot. Some of its top performing locations even go as far as bringing in $10,000 per square foot. These figures remain largely unchanged from 2012. The sales are reportedly so high that they can distort normal lease fees that are usually partly calculated based on a mall’s overall performance. For those of you who didn’t know, when looking for a new spot to set up a shop, retailers reportedly ask malls to exclude Apple Store data from overall sales statistics.

Furthermore, in its most recent report covering the quarter ending in December, the Cupertino California company revealed that it had spent roughly $3.5 billion related to retail space. At the end of the period, the company had nearly 450 Apple Stores in operation around the world – a number which it is looking to expand in the future with additional retail stores in key locations.

Source: The Wall Street Journal