Apple Expands Office Footprint at Vornado’s Penn 11

According to The Real Deal, Apple (AAPL) has added 61 KSF of office space at Vornado Realty Trust’s (VNO) Penn 11 in Midtown South. 

The deal marks yet another step in Apple’s ongoing office footprint expansion in New York City.

Deal Details

Apple quietly finalized the lease for an additional 61 KSF at Penn 11, a 26-story building located on Seventh Avenue between West 31st and West 32nd streets. 

The latest lease brings Apple’s total leased space in the 1.1 MSF building, which spans 11 floors, to 460 KSF.

The space was previously leased by Macy’s (M), which moved many employees to Queens but retained its lease credit as part of an unusual agreement with Vornado Realty Trust. This arrangement ensures Macy’s responsibility for the lease while allowing Vornado to build a relationship with Apple.

Setting The Scene

Apple initially entered the property in 2020, subleasing 220 KSF from Macy’s at an asking rent in the mid-$60s PSF. 

Since then, the company has steadily expanded, capitalizing on Penn 11’s LEED Gold-certified renovations and its convenient underground connections to Moynihan Train Hall and the Farley Building.

Vornado purchased the historic Penn 11 (originally built in 1923) in 1997 as part of a $437M portfolio deal. The building has since been modernized, featuring updated lighting and tiered setbacks that enhance its architectural profile.

Why It Matters

This latest expansion highlights Apple’s commitment to maintaining a robust presence in New York City. 

With its space secured through 2035, Apple’s continued growth at Penn 11 reflects the tech giant’s confidence in the city’s CRE market and the strategic appeal of Midtown South for major corporate tenants.