Hermès is headed to Williamsburg, its first significant foray into Brooklyn.
The French luxury retailer has signed leases for two spaces in the neighborhood, Women’s Wear Daily reported. One space is a pop-up that will be around for multiple years, while another space will be a permanent location; both are owned by investment firm L3 Capital.
The brand is slated to pop up in the first quarter of 2023 at 91 North 6th Street. The retailer plans to stay in the 5,400-square-foot, two-story space for about two years.
After its neighborhood debut, the company plans on taking an 8,500-square-foot space at 111 North 6th Street in 2026. Construction is ongoing for the single-story property.
Asking rents for both leases were not disclosed.
Chicago-based L3 began putting together a portfolio of retail properties in Williamsburg in 2015. Both of Hermès’ future locations were part of a refinancing the firm received in 2020 from Ladder Capital, which loaned $90.5 million for the portfolio.
North 6th Street is one of the hottest retail corridors in all of Brooklyn. According to a recent report from the Real Estate Board of New York, the block boasted the highest average asking rents in Brooklyn at $225 per square foot.
Williamsburg was one of the biggest winners in the ripple effect remote work had on retail in residential areas. CoStar data reported by the Wall Street Journal showed landlords filled 123,000 square feet of retail space in the first quarter of 2022, the highest since 2016.
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The march into Williamsburg is the latest in Hermès’ big year in the Big Apple.
In February, the company signed a three-floor, 72,000-square-foot lease at Olayan Group’s redesigned 550 Madison Avenue. The Midtown space is set to serve as the U.S. headquarters for Hermès, which is moving from 55 East 59th Street. It is expected to move into the office next summer.
Hermès is also set to unveil a flagship store in September at 706 Madison Avenue. The company reportedly signed a lease for a five-story, 40,000-square-foot space at Friedland Properties’ building in 2019. The space will also include two outdoor terraces.
When the flagship opens, Hermès will move out of two other retail locations along Madison Avenue. The company boasts more than 300 locations across the world, spanning 45 countries.
[WWD] — Holden Walter-Warner