The Real Deal New York

Hermès planning new Madison Ave flagship

The luxury brand has reportedly signed a lease at 706 Madison Ave
February 14, 2019 12:45PM

Hermès’ current location at 691 Madison Avenue and 706 Madison Avenue (Credit: Tahl Propp Equities and Google Maps)

Luxury retailer Hermès of Paris is planning a new flagship location at Friedland Properties’ 706 Madison Avenue.

The company has signed a lease and will open the new location in 2022, Women’s Wear Daily reported. The five-story space spans roughly 40,000 square feet and includes two outdoor terraces.

The site is connected to a restored bank building from the 1920s, approved by the Landmarks Preservation Commission.

The news comes as Madison Avenue retail has struggled — with vacancies rising following the financial crisis. The corridor saw its seventh straight year-over-year drop in asking rent to $1,160 a square foot, a 7 percent decline, according to the Real Estate Board of New York’s fall retail survey.

“We’re thrilled about Hermès’ long-term commitment and what it means to the avenue,” said Rick Friedland, a principal at Friedland Properties. ”Balenciaga and Celine just made commitments to Madison Avenue. We’re hopeful that this signifies some resurgence on the avenue.”

The brand has reportedly has been looking for a space that would allow it to remain on Madison Avenue and brings its men’s and women’s products under one roof. The company, which is said to have outgrown its current locations, will remain at its current 691 Madison Ave location until the new flagship opens.

The new location is being designed by RDAI — the Paris-based architecture firm founded by Réna Dumas, the late wife of Jean-Louis Dumas, who was CEO of Hermès until 2006 and died in 2010.

Last year, fashion designer Celine signed a deal for 5,000 square feet at Vornado Realty Trust and Crown Acquisitions’ 650 Madison Avenue, paying an estimated $7.8 million in an annual rent. The deal also includes 800 square feet of additional storage space. And Balenciaga signed a lease at Boston Properties’ 620 Madison Avenue, paying an estimated $5 million in annual rent. [WWD] — Meenal Vamburkar