A glossy glass exterior that bathes the space in natural light, white marble floors, and shelving and display cases in warm polished gold: The new Gucci flagship at 725 Fifth Avenue in Trump Tower is not only an unabashed shrine to luxury, but, according to brokers familiar with details of the renovation, likely the most expensive store build-out ever on Fifth Avenue.
The rent is also steep. Brokers familiar with the deal say Gucci is paying above $1,500 per square foot for the 6,200 square feet it occupies at ground level.
If so, that marks a record.
“It’s a record for the gross value of a lease for a specialty store in the city,” said Andrew Goldberg, executive vice president of CB Richard Ellis.
Brokers estimate that the other 40,000 square feet, spread over two floors, are being leased for between $350 and $400 per square foot. If those figures are accurate, Gucci is spending in the neighborhood of $22.6 million per year for rent, significantly more than the previously reported figure of $16 million.
Much has been made about how Gucci’s new 46,000-square-foot store, at the location that used to house Asprey, represents the latest in ultra-luxury shopping. But while the store is poised to draw international tourists, the super-wealthy and aspirational affluents, some brokers speculate that its location along high-traffic Fifth Avenue sends a different message: Despite the gloss, Gucci is determined to court a clientele that is simultaneously broader and more middle-brow.
“To be on Fifth Avenue is center stage in the world marketplace,” said Ben Fox, president of Winick Realty Group. “This is a major international statement they’re making. If you’re looking to broaden your audience, you go to Fifth Avenue as opposed to Madison.”
Although Trump Tower, where the new Gucci occupies three levels, might have lost some of its tony sheen in the past two decades, Goldberg notes that it is still one of the top tourist attractions in New York.
For its part, Gucci Fifth Avenue is the biggest and grandest of Gucci’s 200-plus international stores. The new megastore marks a major investment by the fashion house — it cost between $50 and $70 million to build, brokers estimated — and a high-profile brand-building statement. But the payoff could be sweet, too: The store has the potential to generate over $100 million in annual revenue, sources said.
From a business perspective, “it’s going to be huge,” said Goldberg, who brokered the lease.
For one, the location is the stuff that retail dreams are made of. The space has “the widest and longest frontage and presence of any store on Fifth Avenue,” Goldberg said. “It’s on the best block.”
Of course, Gucci isn’t the area’s only luxury retailer. The megastore is situated in a neighborhood that is an iconic hub of upscale shoppers and tourists from around the world. That strip of Fifth Avenue alone is home to tony merchants such as Bulgari, Tiffany and Bergdorf Goodman.
Yet with this store, Gucci seems to be upping the ante in an effort to outshine its retail neighbors. It’s a race, since more luxury rivals are on the way. Giorgio Armani plans to open a 47,000-square-foot retail store on Fifth Avenue this fall, and the former Gucci location at 685 Fifth Avenue will be replaced by a Hugo Boss store.
The 685 Fifth Avenue site “was an old and tired store,” Goldberg said. “They were ready for a new look and feel for the brand. This space better fits their needs, he said, calling it “dramatic and sleek.”
Indeed, Gucci has infused the store with a rarefied air; its design draws inspiration from the Art Deco era. As the Gucci press materials put it, “it is a grand departure from codified retail spaces and paves the way for Gucci’s 21st century modern look.”
The product mix — apparel, jewelry and accessories — will be peppered with revolving exhibits of merchandise exclusive to Gucci Fifth Avenue.
One broker noted that the neighborhood’s round-the-clock appeal has been increased recently by the 2006 debut of the Apple Store, which is open 24 hours a day, at 767 Fifth Avenue between 58th and 59th streets.
“People are gravitating towards the area seven days a week,” she said.
But while the Gucci store reinforces the area’s highbrow aura, it’s not expected to make a transformative retail imprint on the neighborhood, already a long established center of upscale merchants — and where retail space is maxed out.
“It’s another pretty face in a sea of pretty faces,” Fox said.