Before Dust Settled Following Hermes' Departure, Jil Sander Plans to Take Up Residence

NEW YORK CITY-Hermes, a popular upscale clothing retailer, was a mainstay of East 57th Street for two decades. It was one of the many anchor boutiques that made the street the corridor of choice for the big-spender shopping between Madison and Fifth Avenues. Last month, Hermes relocated to its new headquarters on Madison Avenue, leaving questions about what business could fill the void. Jil Sander, now controlled by trendy Prada, will lease the space for more than the asking price, a source close to the deal confirms.

Word broke shortly after the deal was reportedly signed late last week and an insider confirms the talk. Hermes moved out in mid-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’s clothing will make it there–and make it well enough to pay the considerable rent. The new tenant will reportedly pay more than $750 per sf. Rent this high is remarkably pricey even by Midtown standards.

In fact, this rent price is only a piece of what Jil Sander will be paying. In addition to paying one of the highest rent rates anywhere on the planet for the ground floor retail space, it will also take up all but some gallery space in the approximately 18,000-sf building. The leasing agent that secured the rent rate in the freshly signed deal was Newmark & Co.