• 0
  • Home
  • About Us
  • What We Do

Shopping Cart

GPAM
  • Home
  • About Us
  • What We Do

Apple’s rumored DTLA retail store is having a real impact on neighboring real estate

Tower Theatre on Broadway (Credit: Wikimedia Commons, Pixabay)

The latest iPhone release always attracts attention, drawing a crowd of people who wait hours outside each Apple store for their prized possession. But in Los Angeles, it’s what Apple hasn’t done that has left the real estate industry waiting.

Since 2015, Apple has been rumored to be opening a retail store in Downtown L.A., at the 7,500-square-foot Tower Theatre at 802 South Broadway.

But with no official announcement from the technology giant, local landlords and tenants have been reluctant to sign long-term leases in that neighborhood, brokers say. New tenants don’t want to invest in a location where the biggest attraction isn’t locked in — especially in an area that has struggled to draw top retailers — and landlords may see an opportunity to boost rents once Apple’s presence is confirmed.

The Cupertino-based company has long had the ability upend a neighborhood’s retail market after setting up shop, experts say. Apple has raised sales by 10 percent in malls in which it operates a store, according to a report from real estate research firm Green Street Advisors. Its presence has also led landlords to charge neighboring tenants more, with the theory that the company sharply increases foot traffic to the area.

Apple stores have also meant big money for property owners. In Chicago, the Walton Street Capital is hoping to sell a 20,000-square-foot Apple store inside its office building on Magnificent Mile for as much as $175 million. Considering it paid $370 million for the property a little less than a year ago, that would mean the Apple store could account for nearly half the building’s value, even though it only occupies less than 3 percent of the building’s square footage.

In L.A., local commercial broker and blogger Brigham Yen first wrote about the South Broadway Apple store rumor in November 2015. Brigham said there were “enough people” that he trusted who confirmed Apple’s decision to open a store. An article by the Los Angeles Business Journal in May 2016 also mentioned the possibility.

Another post by Yen last September with the headline, “OMG: Apple store “done deal,” renewed interest. Still, Apple has remained silent, and the company did not respond to requests for comment for this article.

The theater is owned by the Delijani family, which owns several other Downtown properties including the Palace, State and Los Angeles theaters. Representatives for the family could not be reached for comment.

Apple’s presence would likely boost traffic along the Broadway corridor. Ground-floor retail vacancy rates there hover at around 15 to 20 percent, nearly four times the average of Greater L.A., according to a recent report from CBRE.

“I wouldn’t be surprised if something was announced in the next six months,” said Gabe Kadosh, a Colliers International retail broker in Downtown, said of the Broadway Apple store.

In Los Angeles, there are seven Apple stores.

The sheer possibility that the company will open a retail location is causing a slowdown in the real estate market as tenants and landlords wait to see what happens, several local brokers said. Landlords are reluctant to offer long-term leases to tenants because the going rate would likely be much higher if Apple inks its deal for South Broadway, Kadosh said.

“The reason why it could be worth waiting is because the value would go up,” said Jay Luchs, a broker at Newmark Knight Frank,. “But no one likes waiting for the unknown. It’s like waiting for a check to come in and you don’t know when it’s going to come.”

It’s also caused some hesitation among tenants, who are waiting to see where Apple will go in an effort to hopefully gain some of its foot traffic that might spillover.

“The hardest thing to do in retail is to get people to show up,” Luchs said. “If you have an Apple Store, it’s like having a restaurant. You have people everywhere.”

Powered by WPeMatico

  • 27 April 2018
  • The Real Deal
  • Uncategorized
  •  Like
Tired of the hassle of selling your home? Try this all-cash alternative →← Please, won’t someone just buy some real estate stocks?
  • Recent Posts

    • LA County greenlights self-certification for Altadena rebuilding May 8, 2025
    • Irvine Company aims to transform golf course into village of 3K homes May 8, 2025
    • Former LA police commissioner, prominent attorney to list Bel-Air estate for $24M May 8, 2025
    • Movers: Gambino Group nabs LA, NY agents May 8, 2025
    • Sacramento investor lists 270K sf DTLA office park leasehold May 8, 2025
  • Recent Comments

    • Archives

      • May 2025
      • April 2025
      • March 2025
      • February 2025
      • January 2025
      • December 2024
      • November 2024
      • October 2024
      • September 2024
      • August 2024
      • July 2024
      • June 2024
      • May 2024
      • April 2024
      • March 2024
      • February 2024
      • January 2024
      • December 2023
      • February 2023
      • January 2023
      • December 2022
      • November 2022
      • October 2022
      • September 2022
      • August 2022
      • July 2022
      • June 2022
      • May 2022
      • April 2022
      • March 2022
      • February 2022
      • January 2022
      • December 2021
      • November 2021
      • October 2021
      • September 2021
      • August 2021
      • July 2021
      • June 2021
      • May 2021
      • April 2021
      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018
      • October 2018
      • September 2018
      • August 2018
      • July 2018
      • June 2018
      • May 2018
      • April 2018
      • March 2018
      • February 2018
      • January 2018
      • December 2017
    • Global Property and Asset Mangement, Inc.
      137 North Larchmont
      Los Angeles, California 90010
      +1 213-427-1127

    © 2025 GPAM