8/7/2023 0 Comments Apple store chicago address![]() ![]() Having worked only a couple of blocks from there, the above ground was a plaza and trees. ![]() My guess whoever owned it wanted to simply cash out and live on an island somewhere. ![]() So to say that Apple is paying rent "well below the average" is misleading because the owner was getting zero rent for that section anyways.Įither way, I wonder what the reason for the sale was. The landlord just blew it up to make way for Apple to build their building. My understanding is that prior to Apple, there was no structure there except a plaza. How would Apple's rent be affected with a new landlord? They signed a lease, which is most likely for several years, (if not 10 years), and probably has a clause in there somewhere regarding renewal terms too, and any future landlord must honor it. A change in landlords could affect rates, Splitting the office real estate from the commercial retail real estate might have been in Walton Street Capital's original plans.ĭue to its clout, Apple is currently paying a rent "well below" the average $400 to $500 per square feet of other businesses in the Michigan Avenue area, the Journal's sources claimed. Retail is shrinking so it is becoming more challenging to make sure commercial retail spaces are occupied. It is likely that this owner simply want to get out of the commercial retail rental market. Walton Street Capital are just selling the retail spaces. The AppleInsider article states that Walton Street Capital intends on keeping the office space property in the nearby tower it has nothing to do with retiring and moving to an island. They are paying "well below" average commercial rent in the same neighborhood. Saying that Apple pays significantly less rent is not misleading. The article over at MacRumors about the same topic provides a little more detail. Or maybe the new owner of the existing property says, "Yeah, let's keep the terms the same rather than let the property go empty and hope we can find a new long-term tenant who will pay more." Perhaps a different landlord down the street would be happy to have a prestigious tenant such as Apple. They are paying less than the average commercial retail rental rates for the area ($400-500), let's say Apple is paying $300. In this case, the new owner of the property might tell Apple that rent is going up to $600/sq. I am not sure how real estate contracts are interpreted in Illinois. Again, this is very commonplace here in California. The old agreement is void so either Renter X needs to negotiate new terms or move out. In a different scenario, let's say Owner B wants to increase the rent to $10,000/month. Owner B gives 60-day notice to Renter X that the building is set for demolition and they have 60 days to move out. Let's say Owner B decides he wants to raze the existing property and build new condominiums this happens all the time. The lease agreement between Renter X and Owner A is now voided and a new contract must be negotiated with Owner B. Let's say Renter X is renting space ($3000 month) for a bar in Owner A's Building A. There's probably a law that states that the previous contract is in effect on a month-to-month basis. Whether it be in residential real estate or commercial real estate, typically the leases need to be renegotiated. At least here in California, if the ownership changes, the contract between the two parties is voided. ![]() While I am not a real estate attorney, my guess is that Apple's contract may need to be renegotiated with the new landlord.Ĭontracts are agreements between two parties, in this case Renter A (Apple) and Owner W (Walton Street Capital). ![]()
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