Apple has 265 retail stores in the U.S, which together draw around a million visitors a day with gleaming, covetable devices. Many of these stores are comfortably ensconced in shopping malls, next to smaller retailers selling Old World goods like shirts for $9.99, scented body lotion, and running shoes. However, those ordinary stores pay as much as 15 percent of their overall sales per square foot in rent, while the tech giant, with its new $10K golden Apple Watches, has negotiated to pay no more than two percent. According to the Wall Street Journal, Apple's "huge gravitational pull on mall traffic is distorting the market for mall rents, winning the iPhone maker sweetheart deals and putting upward pressure on other tenants' leases."
However much they may increase store rents for their neighbors, Apple stores also lift sales at the malls they reside in by around ten percent. But unlike department stores, which previously received the choicest real estate deals at malls (but are now closing en masse), "Apple doesn't promote cross shopping as much as healthy department stores do," a real estate analyst told the WSJ.
Many customers just visit Apple, stroke a few glass screens, and then leave. In conclusion, it's kind of hard to tell whether having an Apple store as your mall neighbor is a good thing or a bad thing.
· Apple Gets Sweet Deals From Mall Operators [Wall Street Journal]
· Take a Global Tour of the 50 Most Eye-Catching Apple Stores [Curbed National]
· Jonathan Ive Wants to Sell Apple Watches in Special V.I.P Areas [Curbed National]
· All Apple coverage [Curbed National]