Luxury Retail Hermès Acquires Record Rodeo Drive Site

Hermès buys $400M in Rodeo Drive retail, doubling its Beverly Hills footprint amid soaring demand for luxury flagship space.

February 11, 2026

Nina Dale

Hermès confirmed as the buyer of adjoining Rodeo Drive properties for $400M.
The 25 KSF site is roughly twice the size of Hermès’ current Beverly Hills store.
Current tenants—Tom Ford, Moncler, and Balenciaga—have years left on their leases.
Beverly Hills retail rents have increased nearly 50% since 2019 amid tight inventory.

Key Takeaways

Hermès Expands Beverly Hills Footprint

French luxury retailer Hermès bought two adjoining properties on Beverly Hills’ Rodeo Drive for $400M, setting a local record, reports The WSJ. The deal marks the largest retail real estate transaction in the city’s history. The purchase gives Hermès control of 25,000 SF now occupied by Tom Ford, Moncler, and Balenciaga.

While Hermès already owns and operates a store nearby, the newly acquired site is about double the size. The company purchased the properties by acquiring an affiliate linked to the previous owner, ECA Capital Ltd., based in Ireland. The leases with existing tenants have several years remaining, so any Hermès expansion into these locations will not be immediate.

Luxury Brands Drive Real Estate Competition

The Hermès Rodeo Drive deal continues the trend of luxury fashion houses targeting prime retail locations in major global cities. Recent acquisitions by companies such as LVMH, Kering (Gucci), and Richemont (Cartier) have driven up demand and values for these trophy assets. As a result, available retail space on Rodeo Drive has shrunk, leading to fierce bidding and early lease renewal negotiations—even for space with expiration dates years away.

According to CBRE, luxury retail space on Rodeo Drive has seen asking rents rise nearly 50% since 2019. The intense demand is further illustrated by only one long-term vacant storefront currently available. Landlords now benefit from increased pricing power as luxury retailers compete for flagship locations.

Why Big Footprints Still Matter

Luxury brands like Hermès continue to grow their physical footprints, even as many US retailers shift toward smaller locations and e-commerce. These companies need larger spaces to display full product lines and offer in-store experiences, such as dining and personalization. Since fewer luxury sales happen online, brands still prioritize expansive, high-profile flagship stores in markets like Beverly Hills.

New leases by brands like Canada Goose and Graff, along with the $10B One Beverly Hills project, show strong sector momentum. Competition for prime Rodeo Drive locations remains intense, as luxury retailers race to secure scarce, prestigious space.