Whether it’s a coveted Hermès Birkin bag or a Class A flagship storefront on Fifth Avenue, each demands a certain level of access. When thoughtfully cultivated, that access creates value that elevates the brand — customer experience and reinforces a sense of exclusivity — the very quality that makes both luxury goods and prime real estate so desirable.

For luxury brands like Rolex or Hermès, this means cultivating desire through limited runs, waitlists, and tightly managed distribution. In retail real estate, the same principle applies through tenant mix, lease structures, and portfolio strategy, where prime space is bundled with complementary offerings so every square foot reinforces the value of the whole.

Exclusivity as a Value Multiplier

Hermès has elevated artificial scarcity into an art form. Instead of flooding the market with more Birkin bags, as mainstream retailers might, the brand deliberately limits production. Curation and exclusivity are woven into the DNA of Hermès. Loyal customers are carefully guided through the brand’s ecosystem, gradually building cachet (and leverage) with each purchase while developing a trusted relationship with their sales associate to gain access to waitlists. It’s not unusual for a shopper to spend upwards of $19,000 on non-bag items to secure the chance to pay $13,000 (most recent pricing includes tariff) on a leather Birkin bag. In this way, Hermès turns exclusivity into a system that drives customers to explore the full brand portfolio, one item at a time. By tightly controlling access — from wholesale distribution to the selective opening of stores — Hermès has engineered a purchasing journey where each transaction builds toward the ultimate goal, making access itself feel like an investment. 

This carefully orchestrated scarcity strategy has proven remarkably profitable. In the first half of 2025, the group reported consolidated revenue of €8 billion, up 8% at constant exchange rates compared to the same period in 2024. Recurring operating income rose to €3.3 billion, representing an impressive 41.4% of sales. Momentum strengthened in the second quarter, with sales reaching €3.9 billion, marking a 9% year-over-year increase. Every global region contributed to this growth, underscoring the durability of Hermès’ tightly controlled distribution and ecosystem-driven customer journey.

Access as Currency

In commercial real estate retail leasing, exclusivity-based strategies and bundling work differently but serve the same goal: portfolio performance. Hermès buyers see a Birkin as both a status symbol and an investment; retailers view a Class A lease as more than rent; it’s a stake in visibility, foot traffic, and a curated brand environment that can appreciate over time.

Landlords strategically cluster anchor tenants, luxury brands, and compelling in-store experiences to create demand for smaller inline stores. Securing a flagship brand, such as Hermes, an Apple Store, or cluster of best in class, emerging restaurants or entertainment concepts, can lift the entire property, with neighboring retailers willing to pay premium rents for the consistent foot traffic that follows. In doing so, landlords reinforce their positioning strategy by making prime space a matter of conditional access.

Hermès devotees are guided along a shopping pathway toward iconic pieces. At the same time, landlords may require tenants to lease secondary or less visible space as part of the deal for coveted frontage. A curated tenant mix strengthens the ecosystem by layering in dining, immersive retail, pop-ups, and digital integrations to create an environment worth paying more for.

Simon Properties’ Class A malls have consistently maintained occupancy rates of around 96%. That level of performance allows the company to command higher base rents in top markets and to use access itself as currency. Instead of relying on steep discounts or costly tenant improvement packages to fill B-class spaces, Simon positions access to prime locations, often anchored by top-tier brands like Louis Vuitton and Tiffany & Co., as the incentive.

The complexity is intentional, but the dynamics of control are also shifting. Increasingly, luxury brands aren’t just leasing space—they’re acquiring it. Fashion houses like Prada and Kering have spent more than $9 billion in recent years on high-profile retail properties. In New York, Prada purchased 724 Fifth Avenue, a storefront it had leased since 1997, for an estimated $425 million, while Kering acquired 715–717 Fifth Avenue for $963 million. In Milan, the parent company of Gucci and Balenciaga purchased a historic property on Via Montenapoleone for $1.4 billion. For luxury brands, owning real estate isn’t just a hedge against rising rents—it’s a way to secure long-term access to Class A locations, control the retail experience, and reinforce brand equity at the street level. 

Ready to leverage these access-driven strategies in your portfolio? Connect with a Colliers Retail Advisor who understands how exclusivity creates value.