Melrose sees growing interest – Los Angeles Business Journal

Melrose Avenue and Melrose Place in West Hollywood have seen growing interest from tenants as the street recovers from the Covid-19 pandemic. The last participant? The ultra-luxury brand Gucci, which has signed a lease agreement for the former Marc Jacobs store at 8400 Melrose Ave.

The space for which the Vice President of Newmark Group Inc. is expected. Jay Luchs had a list expected to first pop up Gucci’s collaboration with Adidas.
The Adidas x Gucci collection debuted during the Milan fashion show in February and will be presented at a number of pop-ups in June.

Gucci, who does not respond immediately to a request for comment, will remain in the space after the pop-up window closes.
Experts agree that interest in the street is growing as brands seek to open stores in the modern area, which they say will lead to high employment.

“The market is tightening,” said Ryan German, a retail specialist at CBRE Group Inc. “You have your main retail corridors, several streets in Los Angeles that people want to be on, and Melrose is one of them. .

“For real estate of good quality we see many tenants in the market. We also see some newcomers on the street, “he added. “We saw a lot of vacancies during the height of Covid, but now it’s hotter than ever.
Devin Klein, vice president of Jones Lang LaSalle Inc., agreed.

“Leaving Covid, Melrose returns with revenge, no doubt,” he said. “You have a number of deals that go up and down the block… There is a lot of activity and a lot of interest from luxury brands.”

Near Rodeo Drive

Melrose is just a few miles from the luxurious Rodeo Drive shopping street. But brokers say retailers are interested in being on both streets and acknowledge the differences in the two iconic shopping areas.
“Brands are beginning to realize the importance of this (Melrose) and that it’s good to be in both places. That’s a slightly different customer, “Luchs said.

Melrose, experts agree, is usually liked by a local young clientele that brands try to like. Luchs called the area “distorting younger and influential people.”
“Celebrities, influential people and people like this, it’s more of a casual environment for this world,” he said. “Rodeo Drive is the best fashion street in the world, these are three streets with full retail and it is as good as it has always been. You can’t find a place. But it will also help West Hollywood grow a little because you can’t find a place (on Rodeo Drive). ”

I see that many more brands are coming to Melrose.
Karin Mammon
Cushman and Wakefield

Karin Mammon, CEO of Cushman & Wakefield, agreed.
“If you’re a luxury brand, Rodeo Drive is three blocks long,” she said. “There is so much room. If you’re going to do a second store in LA, the luxury will definitely go to Melrose. Melrose has other things.

“Melrose and West Hollywood, this area is the entertainment fashion hub of Los Angeles, there are many of your top restaurants and your top nightclubs,” said Klein, adding that the area is close to very expensive residential buildings, real estate and individuals with high net worth. He added that there are many new developments in the area, including hotels and mixed-use projects that bring energy to market.

“West Hollywood and Melrose have a brilliance and an advantage that Beverly Hills does not have,” Klein added.
Mammon said Melrose is also very convenient for pedestrians, which makes it great for shopping.

For tenants, Melrose is a cheaper place to call home than Rodeo Drive. Melrose’s rents could average $ 240 per square foot, while the glossy Rodeo’s rents average $ 900 per square foot, she said.

As for the stores themselves, Klein said Melrose gets more boutique luxury brands than Rodeo Drive, but Gucci’s arrival on the street “speaks volumes” about his desirability.
Gourmet said many brands are now looking to bring new concepts to Melrose, adding that he expects to see more collaborations and brands attractive to modernizers who set up businesses in the area.

Positive signs

Retail experts agree that Melrose has a bright future.
“It will only get better,” Klein said. “The search will only continue.”
And many believe that Gucci is just one example of a top brand that is interested in the street.
“I see more luxury,” Mammon said. “I see a lot more brands coming to Melrose, it’s a really exciting time for the street.”

Melrose Drive attracts a lot of attention from buyers and traders, and the real estate industry is paying attention.

Mammon added that he also expects to see more Rodeo Drive stores opening second to Melrose, many of which make the concept a little different at Melrose. Melrose, she said, often has smaller storefronts, and she believes we will see that some high-end brands make Melrose more specialized spaces than their leading Rodeo Drive locations.

And experts agree that some brands that are online or international, but don’t have storefronts in the United States, are likely to test waters in areas like Melrose instead of sticking to New York as a testing ground.

“I hope to continue to see a lot of the same thing,” Gourmet said. “I hope more brands want to focus on Melrose and more people want to keep shopping and the market will stay as hot as it is, and it’s exciting to see … it’s such a difference of a year and a half, two years before. ”Gucci's future showcase of the 8400 Melrose Ave.  and general view of Melrose Ave.  (Photo of Ringo Chiu)

He added that he saw great interest in properties that were not rented out at the height of the pandemic. Rental rates, he said, fell during the pandemic, but are now “approaching pre-Covid figures”.
“I hope this activity and the heat of the market remain strong,” Gourmet said.

Leave a Comment

Your email address will not be published.