Roberto Cavalli, the iconic Italian fashion house known for its bold, glamorous, and exotic designs, has officially opened its doors at The Beverly Center located at 8500 Beverly Blvd, Suite 750. The boutique spans approximately 2,500 square feet and offers an array of men’s and women’s ready-to-wear collections, accessories, eyewear, fragrances, and couture creations. Joining other luxury retailers such as: Saint Laurent, Louis Vuitton, Prada, Gucci, Versace, Ferragamo and Dolce and Gabbana. The old Cavalli store once located at 362 N Rodeo Dr. approx. 3,800 SF now replaced by Dior Men shut down in the fall of 2020.
The store’s interior design features beige resin flooring, geometric-patterned wooden parquet, champagne gold metal furnishings, white lacquered wood panels, and ivory-toned leopard print wallpaper, creating a truly immersive shopping experience. Design aligns with the aesthetic direction of Roberto Cavalli’s creative director, Fausto Puglisi. While it’s not confirmed that Puglisi personally designed the store, his influence is evident in its decor.
Beverly Center retail space rental averages around $25-$35 per square foot per month exclusive additional marketing and triple net fees compared to Rodeo Drive at approx. $120 per square foot per month. However, rates can vary significantly based on factors such as location and size. For example, pop-up venues in Beverly Hills range from about $350 per day on the city’s eastern edge to around $7,000 per day for prime real estate, with some larger spaces going for as much as $18,000 per day or more.
The Commercial Real Estate Perspective
While high-street locations like The Beverly Center provide prestige and visibility, luxury real estate is often more about exclusivity, privacy, and amenities such as valet parking, less tourism and more restaurant options rather than sheer foot traffic. Many high-end buyers and brands prioritize locations that offer seclusion, scenic views, and top-tier services over high-profile addresses. The decision to open at The Beverly Center comes at a time when Beverly Hills commercial spaces are experiencing rising rental costs. Simultaneously, the retail sector is witnessing frequent store closures, leading to speculation about whether Cavalli’s move is a calculated expansion or a market test once again after leaving Rodeo Dr.
Challenges Facing Luxury Retail
Luxury brands, including industry giants like LVMH, Kering, and Richemont, have been facing slowed sales growth, particularly in key markets such as the U.S. and China. Several factors contribute to this trend:
Economic Uncertainty: Consumer spending habits have shifted due to inflation, interest rates, and overall economic conditions.
Chinese Market Slowdown: Once a powerhouse for luxury sales, China has seen a more cautious consumer approach.
Shift in Spending Priorities: Younger generations are valuing experiences over material goods, leading to shifts in purchasing behavior.
Growth of the Resale Market: The secondhand luxury market continues to expand, providing high-end shoppers with alternative options at competitive prices.
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The Role of Commercial Real Estate Negotiation
For commercial real estate professionals, the core challenge remains negotiating favorable lease terms for clients while anticipating future market trends. Rent is often the most significant expense for luxury retailers, followed closely by labor costs. When structuring a lease, we must consider:
A 5- to 10-year outlook to ensure sustainability and brand longevity.
The balance between branding benefits and financial viability.
The potential risks associated with high-rent locations versus exclusive, more discreet retail spaces.
Tenant Mix
Understanding market demographics- Retail landlord financials, Prime location and visibility- Signage…
Final Thoughts
Roberto Cavalli’s decision to open at The Beverly Center could signal a strategic move to revitalize its brand presence in the U.S. market. However, given the current state of luxury retail, it may also serve as a test to gauge consumer response and sales performance before committing to further expansion. As commercial real estate experts, we must closely analyze these market shifts to guide clients toward financially sound and strategically advantageous leasing decisions. Check out the new Roberto Cavalli store open Monday to Saturday from 11:00 AM to 7:00 PM, and Sunday from 11:00 AM to 6:00 PM.Â
Ari Mencias Â
ari@cbi-commercial.com, 310.943.8534.Â