The identity of the buyer behind a landmark real estate purchase on Rodeo Drive in Beverly Hills has been disclosed.
French luxury brand Hermès has made headlines by acquiring a prime property in the renowned area for an astonishing $400 million, as reported by the Wall Street Journal.
For several months, speculation swirled about who secured this significant real estate deal after the sale of an adjacent property was announced last summer.
This purchase marks the highest retail real estate transaction on Rodeo Drive in over two decades, according to data from the real estate firm CBRE.
The new Hermès store is set to be located at 338 N. Rodeo Drive, boasting around 25,000 square feet—double what the current store a few doors down offers. Interestingly, Hermès bought its existing store 15 years ago.
At present, the new location is home to three other fashion retailers: Tom Ford, Balenciaga, and Moncler.
What Hermès plans to do with the property remains uncertain, especially since the current tenants still have several years left on their lease. This landscape seems to contrast with many retailers contracting their U.S. presence, while luxury brands are opting to broaden their flagship store offerings, the WSJ notes.
Jay Lux, vice chairman of Newmark, who facilitated the Rodeo Drive deal, commented that there appears to be a strong commitment from luxury brands willing to purchase real estate, and the buildings are getting larger.
CBRE Senior Vice President Homan Mahboubi pointed out that there’s only one vacant store available for long-term lease on Rodeo Drive right now, indicating that demand for Beverly Hills properties has intensified since the pandemic.
“We don’t have any inventory,” Mahboubi mentioned, adding that heightened demand from luxury brands for flagship stores is escalating values and strengthening landlords’ pricing power.
Recent reports suggest that the Paris-based label is kicking off 2026 with price hikes on its most popular handbags.
In January, prices for leather Birkin and Kelly bags in the U.S. were up between 6.3% and 8.9%. Meanwhile, European prices saw even steeper increases during the same period, rising from 7.3% to 9.4%.
