Word broke shortly after the deal was reportedly signed latelast week and an insider confirms the talk. Hermes moved out inmid-October from its classic location in the Hearst-owned 11 E.57th St. It had been a staple among boutiques such as Chanel,Escada and Burberry. Now, Prada hopes Jil Sander's line of women'sclothing will make it there--and make it well enough to pay theconsiderable rent. The new tenant will reportedly pay more than$750 per sf. Rent this high is remarkably pricey even by Midtownstandards.

In fact, this rent price is only a piece of what Jil Sander willbe paying. In addition to paying one of the highest rent ratesanywhere on the planet for the ground floor retail space, it willalso take up all but some gallery space in the approximately18,000-sf building. The leasing agent that secured the rent rate inthe freshly signed deal was Newmark & Co.