Thom Browne, Inc.’s Post

Prada is significantly expanding in New York with the acquisition of two prime locations on Fifth Avenue. The Italian fashion brand purchased 724 Fifth Avenue, where its flagship store is located, for $425 million and an adjacent property at 720 Fifth Avenue for about $410 million. These acquisitions occur amidst a challenging real estate market, with declining property values and rising borrowing costs. Despite global economic challenges and a potential slowdown forecasted for 2024, US retail sales, particularly in luxury goods, remain robust. This is reflected in Prada's strategic investment, emphasizing the high value of their Fifth Avenue presence amid growing residential, hospitality, and retail developments. The space will be used for Prada's store, offices, and storage. However, Prada's sales growth has slowed, with the third quarter showing a reduced growth rate for the Prada label. This slowdown contrasts with other luxury brands like Hermes, which continues to see strong performance in the U.S. and Europe, particularly in locations like their Madison Avenue store in New York. These developments highlight the competitive nature of the luxury retail market, especially in coveted locations like New York's Fifth Avenue. As brands like Prada and Hermes navigate the fluctuating global economy, their investment in prime real estate highlights the ongoing allure and strategic importance of such locations in the luxury sector. Hermes' sales were boosted significantly by its Madison Avenue store in New York. #PradaFifthAvenue #LuxuryRetail #USConsumerStrength #GlobalEconomicTrends #PradaSales #LuxuryMarketResilience #HermesSuccess #RetailInvestment #FashionIndustryNews

Luxury meets opportunity as some of the world's most iconic fashion houses, including #Gucci, #Chanel, and others, make strategic investments in U.S. commercial real estate. The presence of these luxury brands in prime American locations attracts international attention: creating jobs, stimulating local economies, and contributing to the vitality of neighborhoods fortunate enough to host these luxury retailers. The luxury sector's confidence in U.S. real estate underscores its resilience and long-term value. Retail spaces are evolving into experiential showcases, blending fashion with technology and artistry. This trend positions #CRE as a canvas for innovation. Do you agree? 🤔 🛍 #LuxuryRetail #CommercialRealEstate #Innovation #EconomicGrowth #FashionAndRealEstate

In an undoubtedly challenging economic environment, we are still witnessing enormous amounts of wealth investing into our market. Whether it’s Real Estate, Entertainment or Luxury Goods, the East End of Melbourne CBD continues to defy the odds. It remains resilient as one of the strongest and in demand pockets to renowned global powerhouses. Cushman & Wakefield Middle Markets are proud to be part of so many of these transactions. Oliver Hay Anthony Kirwan Leon Ma George Davies Josh Andrade #cushwake #luxury #realestate

Battle of the Brands! 🥇   If there was any doubt that #London remains a strategic player for luxury brands, then look no further than the larger-than-life creative takeovers happening right now at Selfridges and Harrods!   Two of the world’s biggest luxury brands Burberry and Louis Vuitton, have not only brought their new collections to town – but have done so on a level rarely seen before. Both brands have gone for all-out takeovers of the façade and every store window, dominating the high-street in blockbuster fashion. In unison, both have also taken over the retailers in-store pop-up spaces, with Louis Vuitton taking over The Corner Shop with Pont Neuf bridge scenography and Pharrell’s produced soundtrack, transporting consumers to the brand’s Paris Fashion Week show. Burberry have taken it one step further with two immersive spaces in-store and another experiential ‘space’ in the metaverse, as well as decking out Harrods’ globally famed green-clad doormen in ‘Knight Blue’ trenchcoats.   As recently shared in FRAME, “Luxury fashion houses are stepping up as storytellers. Owning – and selling – the narrative”. Brands are not only showing up, but raising the bar on brand experiences in retail. As this heightens consumers expectations, is your brand ready to create multi-dimensional showcases of epic proportions? https://lnkd.in/ecj4F3hU #retaildesign #retailnews #brandexperience #experientialmarketing

𝗧𝗵𝗲 𝗟𝘂𝘅𝘂𝗿𝘆 𝗙𝗹𝗮𝗴𝘀𝗵𝗶𝗽 𝗪𝗮𝗿 𝗼𝗻 𝗙𝗶𝗳𝘁𝗵 𝗔𝘃𝗲𝗻𝘂𝗲 "For luxury conglomerates, making a statement with very expensive real estate is simply how the business’s distribution model has evolved — from small side-street stores in Paris and Milan to selling in luxury department stores like Bergdorf and Saks, to increasingly doing the bulk of their sales from flagships. Hence the demand for larger, more eye-catching spaces and ever more extravagant shopping experiences. And they can count on a consistent customer base." https://lnkd.in/e_pbnjf2

In an undoubtedly challenging economic environment, we are still witnessing enormous amounts of wealth investing into our market. Whether it’s Real Estate, Entertainment or Luxury Goods, the East End of Melbourne CBD continues to defy the odds. It remains resilient as one of the strongest and in demand pockets to renowned global powerhouses. Cushman & Wakefield Middle Markets are proud to be part of so many of these transactions. Daniel Wolman Anthony Kirwan Leon Ma George Davies Josh Andrade #cushwake #luxury #realestate

Call it a high-end #retail rebound. Luxury brands are competing to cement their flagships in one of the most sought-after shopping districts in the world: NYC's Fifth Avenue. In the last six months, Kering, Gucci’s parent company, and Prada Group have snapped up properties along the corridor. CHANEL and Tiffany & Co.’s owner, LVMH, are also reportedly exploring deals nearby. And once they find their deals, players are likely to continue an arms race of buildouts that do their best to redefine what #luxuryretail is, establishing permanent legacies at a time when #FifthAvenue is one of the most expensive areas to rent

Italian luxury fashion house Prada has purchased the building housing its flagship store on New York City's prestigious Fifth Avenue. The transaction, valued at $425 million, was a landmark deal from leasing to ownership for the renowned brand. Prada's decision to buy the 12-story building at 724 Fifth Avenue secures Prada's physical footprint in one of the world's most prestigious shopping corridors. Prada's relationship with this iconic location dates back to 1997, when it first leased space in the 12-story building. For over two decades, Prada has been a staple of Fifth Avenue's luxury retail landscape, attracting fashion enthusiasts and tourists alike to its five-story retail space. The decision to purchase the building from Wharton Properties cements Prada's long-standing presence and signals a confident stride into the future of brick-and-mortar retail. Read full article here: https://lnkd.in/gqARpBy8 #retail #fashion #businessnews #fashionindustry #retailnews #fashionnews #ecommerce #dtc #consumertrends #trends

LUXURY BRANDS ROLLING REAL ESTATE DICE. IS THIS A SMART PLAY OR TOO RISKY IN NYC? “The rents that the luxury retailers were paying on Fifth and in other prime locations were simply astronomical,” said Eric Menkes, co-chair of leasing for the New York-based law firm Adler & Stachenfeld. “There comes a point in time when these retailers looked in the mirror and said, ‘Why am I making my landlord rich?’” Luxury retailers are spending big on real estate in the world’s most expensive and exclusive shopping corridors. According to The Wall Street Journal: - In New York City, Prada recently agreed to buy the building that houses its Fifth Avenue store as well as the building next door for more than $800 million. - Gucci’s parent company, Kering, is also paying nearly $1 billion for a 115,000-square-foot retail space a few blocks south. - Luxury behemoth LVMH Moët Hennessy Louis Vuitton, meanwhile, is in discussions to purchase the Fifth Avenue retail space occupied by Bergdorf Goodman’s men’s store, according to a person familiar with the matter. This activity follows a flurry of purchases in Europe, where high-end retailers have snapped up real estate on high streets including Avenue Montaigne in Paris and London’s New Bond Street in recent years. Luxury’s real-estate shopping spree shows that retailers are using their considerable cash to free themselves from the control of landlords and plant their flags on streets where they want a long-term presence. https://lnkd.in/eAjkairT

Luxury retailers are spending big on larger spaces, enhanced amenities, and new locations. Luxury retailers have leased 650,000 square feet of new space in the U.S. over the past 12 months, up from roughly 250,000 square feet the prior year, according to JLL. Retail sales of luxury goods in the U.S. are expected to total $75.68 billion this year, which is a nearly 9% increase from last year’s $69.51 billion. Luxury stores are growing in size -- retailers signed leases for space averaging 5,000 square feet or larger over the past year, which represents a 28% increase from the previous 12 months. High-end brands are spending big to add hospitality components such as cafes and bars in a push to make their locations more compelling and entertaining. Luxury retailers are also expanding beyond the traditional high-end retail corridors such as Michigan Avenue in Chicago and Rodeo Drive in Beverly Hills. They have been following their customers and opening stores in cities and states where the population has boomed in recent years, including Austin and Nashville.