{"id":10770,"date":"2024-04-29T15:20:48","date_gmt":"2024-04-29T15:20:48","guid":{"rendered":"https:\/\/topat10.com\/?p=10770"},"modified":"2024-04-29T15:20:48","modified_gmt":"2024-04-29T15:20:48","slug":"lvmhs-new-path-to-peoples-hearts-and-pockets-is-through-sprawling-real-estate-empires-in-new-york-paris-and-miami","status":"publish","type":"post","link":"https:\/\/topat10.com\/?p=10770","title":{"rendered":"LVMH&#039;s new path to people&#039;s hearts (and pockets) is through sprawling real estate empires in New York, Paris and Miami"},"content":{"rendered":"\n<div>\n<p>While it\u2019s known for shiny bags, perfumes and apparel, the Bernard Arnault-owned company also wants skin in the game when it comes to entire global shopping districts.\u00a0<\/p>\n<p>Whether that\u2019s in legacy sites like New York\u2019s Fifth Avenue and Paris\u2019s Champs-Elys\u00e9es, or the newer warehouse-turned-shopping experience like in Miami\u2019s Design District, the French conglomerate has real estate investments across the board\u2014either directly or through its private equity arm, L Catterton.\u00a0<\/p>\n<p>The goal? To make sure it can hold on to its presence where people spend the most. LVMH\u2019s investments in real estate have been ticking up\u2014in 2023, the Christian Dior owner set a new record for its real estate investments, hitting <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-01-26\/lvmh-explores-purchase-of-building-on-manhattan-s-fifth-avenue\" target=\"_blank\" aria-label=\"Go to https:\/\/www.bloomberg.com\/news\/articles\/2024-01-26\/lvmh-explores-purchase-of-building-on-manhattan-s-fifth-avenue\" rel=\"noopener\" class=\"sc-4d342e41-0 daYNyv\">roughly \u20ac2.45 billion<\/a> ($2.62 billion).\u00a0\u00a0\u00a0\u00a0<\/p>\n<p>\u201cAll roads lead to real estate,\u201d Michael Burke, the head of LVMH Fashion Group, told the <a href=\"https:\/\/www.wsj.com\/real-estate\/commercial\/louis-vuitton-lvmh-real-estate-communities-47aa1d55?mod=latest_headlines\" target=\"_blank\" aria-label=\"Go to https:\/\/www.wsj.com\/real-estate\/commercial\/louis-vuitton-lvmh-real-estate-communities-47aa1d55?mod=latest_headlines\" rel=\"noopener\" class=\"sc-4d342e41-0 daYNyv\"><em>Wall Street Journal<\/em><\/a>, adding that the most valuable luxury company is creating a city of its own through its controlled properties.\u00a0<\/p>\n<p>In Miami, where LVMH has pumped money towards the Design District through L Catterton, the French company\u2019s sway is unlike any other\u2014whether that\u2019s the area\u2019s tenants or even the local artwork.<\/p>\n<p>What\u2019s common to most of these shopping areas is that LVMH\u2019s brands\u2014from Tiffany\u2019s to Louis Vuitton\u2014are located side-by-side with its luxury industry competitors. That\u2019s the point, Burke said.\u00a0<\/p>\n<p>\u201cIf we don\u2019t have the competitors, we don\u2019t have a new city,\u201d said Burke. \u201cWe take something that does not exist and when we\u2019re done a city center has been created with the residential, retail, and cultural aspects to it.\u201d<\/p>\n<p>Fashion companies have driven other big real estate purchases in recent times. Just take Gucci owner Kering\u2014it just shelled out <a href=\"https:\/\/fortune.com\/europe\/2024\/04\/04\/gucci-owner-kering-splurges-1-4-billion-on-new-milan-store-making-it-italys-most-expensive-building\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/europe\/2024\/04\/04\/gucci-owner-kering-splurges-1-4-billion-on-new-milan-store-making-it-italys-most-expensive-building\/\" class=\"sc-4d342e41-0 daYNyv\" rel=\"noopener\">\u20ac1.3 billion<\/a> ($1.4 billion) on a new store location in Milan, where LVMH\u2019s Italian cafe brand Cova is also located. The company also snapped up property in New York worth $963 million earlier <a href=\"https:\/\/fortune.com\/europe\/2024\/01\/23\/gucci-owner-kering-luxury-new-york-fifth-avenue-nearly-1-billion-retail-real-estate-slowdown\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/europe\/2024\/01\/23\/gucci-owner-kering-luxury-new-york-fifth-avenue-nearly-1-billion-retail-real-estate-slowdown\/\" class=\"sc-4d342e41-0 daYNyv\" rel=\"noopener\">this year<\/a>. LVMH has been <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-04-08\/chanel-eyes-nyc-fifth-avenue-tower-that-lvmh-is-also-targeting\" target=\"_blank\" aria-label=\"Go to https:\/\/www.bloomberg.com\/news\/articles\/2024-04-08\/chanel-eyes-nyc-fifth-avenue-tower-that-lvmh-is-also-targeting\" rel=\"noopener\" class=\"sc-4d342e41-0 daYNyv\">in talks to<\/a> buy another prime property in New York, for which it\u2019s battling other luxury houses like Chanel.<\/p>\n<p>Luxury companies are facing a challenging time as people pull back on spending relative to the COVID-19 boom. Still, the stores ran empty, and it\u2019s been a sluggish path to recovering that since.\u00a0<\/p>\n<p>Now, there\u2019s finally light at the end of the tunnel, which has prompted luxury behemoths to bet on in-person shopping experiences. Data on Europe\u2019s 16 luxury streets saw a near-complete recovery in the average rent as <a href=\"https:\/\/www.savills.co.uk\/insight-and-opinion\/savills-news\/354600-0\/luxury-leads-the-way-in-european-retail-recovery--with-overall-retail-spend-to-improve-in-2024\" target=\"_blank\" aria-label=\"Go to https:\/\/www.savills.co.uk\/insight-and-opinion\/savills-news\/354600-0\/luxury-leads-the-way-in-european-retail-recovery--with-overall-retail-spend-to-improve-in-2024\" rel=\"noopener\" class=\"sc-4d342e41-0 daYNyv\">of mid-last year<\/a>, according to Savills.\u00a0<\/p>\n<p>\u201cThere is an appetite from brands to be in city centres to enhance their visibility to a greater number of customers, taking advantage of the strong resurgence of footfall on Europe\u2019s key shopping streets,\u201d Larry Brennan, the head of European retail agency at Savills, said in a note in November.\u00a0<\/p>\n<p>The desire to reach more customers by being on the most famous and popular streets in the world is undoubtedly part of the reason luxury brands are buying up property\u2014but it\u2019s also <a href=\"https:\/\/www.wsj.com\/real-estate\/commercial\/luxury-retailers-are-buying-out-their-landlords-795d888d\" target=\"_blank\" aria-label=\"Go to https:\/\/www.wsj.com\/real-estate\/commercial\/luxury-retailers-are-buying-out-their-landlords-795d888d\" rel=\"noopener\" class=\"sc-4d342e41-0 daYNyv\">just more economical<\/a> to be their own landlord, given the rents can be astronomical in prime shopping areas.<\/p>\n<p>\u201cWe try to secure and buy the best possible locations for our companies,\u201d Arnault said in an earnings call in January.<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>While it\u2019s known for shiny bags, perfumes and apparel, the Bernard Arnault-owned company also wants skin in the game when it comes to entire global shopping districts.\u00a0 Whether that\u2019s in legacy sites like New York\u2019s Fifth Avenue and Paris\u2019s Champs-Elys\u00e9es, or the newer warehouse-turned-shopping experience like in Miami\u2019s Design District, the French conglomerate has real [&hellip;]<\/p>\n","protected":false},"author":40,"featured_media":10771,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[123],"tags":[],"class_list":["post-10770","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>LVMH&#039;s new path to people&#039;s hearts (and pockets) is through sprawling real estate empires in New York, Paris and Miami | Unlock Informed Choices with Us<\/title>\n<meta name=\"description\" content=\"\u201cAll roads lead to real estate,\u201d Michael Burke, the head of 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