Parisian fragrance firm Creed has nabbed a jewel-box space in the Beverly Hills Triangle for its first door in California.
Creed’s store at 9533 Brighton Way totals 566 square feet and is set to open later this year. That door will join the company’s other stores in New York, Las Vegas, Miami, Paris, London, Dubai and Kuwait.
The space is part of a larger retail and office building from the Thirties that was fully occupied by Emporio Armani until a few years ago, with Creed set to share co-tenancies with Isaia, Berluti and jeweler Vhernier.
The deal leaves 1,800 square feet of ground-floor retail remaining in the building, which JLL associate Devin Klein said his firm is in discussions on with a few high-fashion retailers. A high-end showroom or entertainment company is the goal for some 5,200 square feet of office space elsewhere in the building.
Klein, who along with JLL executive vice president Houman Mahboubi brokered the deal on behalf of the landlord, said the breakdown of the building into smaller spaces for multiple tenants is in keeping with a trend happening among landlords looking to create a more thoughtful offering under a single roof. The broker said he sees no abatement in that trend anytime soon.
“When you see the curation of the tenants like what we’ve done where we’ve really handpicked that mix so that it becomes a real high-end boutique shopping experience on a street like Brighton Way, like you would see on a street in Paris or London, that becomes very interesting for the consumer that spends time walking in Beverly Hills,” Klein said. “We see that happening with buildings, which I think is starting to happen more and more and it’s really going to start to bring back more traffic into Beverly Hills.”
There’s certainly nothing wrong with the submarket.
On the investment side, deals continue to be record-breaking with so little real estate typically going on the market. In late 2015, Chanel acquired the 11,500-square-foot Rodeo Drive building it’s in, paying about $13,000 per square foot. That was followed a year later with the sale of the building occupied by Bijan, which went to LVMH Moët Hennessy Louis Vuitton for $122 million or about $19,000 per square foot.
Still, rent growth has softened more recently, according to a JLL City Retail Report. The Beverly Hills Triangle’s annual rent growth has stalled at about 20 percent, according to the report, with an annual prime-per-square-foot asking rent of $900. That’s a confluence of factors pushing rents down, Klein said, pointing to a natural drop from the peak and tenants choosing not to renew their leases.
Streets, such as Brighton Way, which are obviously not Rodeo Drive but close enough to that main thoroughfare, are seeing interesting shifts happen as more tenants explore Rodeo alternatives.
“It’s an open playing field right now. You’ve got your LVMHs and Kerings that would typically only head for Rodeo Drive, their brands are now willing to go outside that mold and go onto the secondary and tertiary streets, like Brighton Way, hence why we’ve been able to put Berluti into this Brighton Way building,” Klein said. “Certain streets have really taken on a new cache. Yes, the typical Rodeo Drive tenants that would always head to Rodeo still want to be on Rodeo Drive, but retailers are becoming a little more adventurous and starting to think outside the box if they can find less rent on a street next to Rodeo.”