Record breaking Rodeo Drive real estate prices demonstrates confidence in prime urban retail corridors
The Golden Triangle is an international retail destination for locals and tourists within Beverly Hills.
October 02, 2019
- The Golden Triangle is an international retail destination for locals and tourists within Beverly Hills. Its borders are Wilshire Boulevard, Canon Drive, and Santa Monica Boulevard.
- During the most recent commercial real estate cycle, real estate along prime urban retail corridors have been trading at prices never before seen in history.
- In 2015, Chanel shocked the real estate world by purchasing its flagship location on Rodeo Drive for $13,217 per square foot. Since then, owner-user luxury brands have been purchasing the storefronts along Rodeo Drive in Beverly Hills at record-breaking prices reaching $19,405 per square foot. French conglomerate LVMH has been the most active, inking a total of 34,738 square feet along the United State’s second most expensive commercial corridor. LVMH’s subsidiaries are Christian Dior, Louis Vuitton, Fendi, Sephora, Givenchy, amongst many other highly regarded fashion brands.
- The high prices retailers are willing to pay in this area underscores the critical nature of location in showcasing one’s brand in today’s competitive landscape.
- While still commanding high prices at $1,470- $2,314 per square foot on the outskirts of Rodeo Drive, investors are able to capture strong retail real estate value with long term pedestrian traffic for a fraction of the cost of their upscale neighbors.
Source: JLL Research/ CoStar