Rising Rents Threaten Robertson's Identity

Robertson Boulevard, a fashionable Los Angeles shopping destination known for its independent streak of boutiques that attract a celebrity crowd, is taking on a corporate air that could threaten its unique ambience.

In early February, Coach Inc., the $2.1 billion corporation that designs and makes leather goods, announced it would open its new concept boutique, called Coach Legacy, at 112 S. Robertson Blvd. this fall.

The move gives the boulevard a certain Rodeo Drive touch that has evaded this shopping section littered with paparazzi on the hunt to photograph star-powered shoppers dropping big bucks.

To date, most of the boutiques up and down Robertson have been high-end emporiums started by small-business people with a flair for fashion.

The street’s fame started to grow more than seven years ago when independent stores such as Lisa Kline and Kitson pioneered the boulevard’s buzz as a placewhere celebrities— such as Paris Hilton, Lindsay Lohan and Britney Spears— shop for the latest styles with expensive price tags.

In the boulevard’s early days, it was relatively easier to take a fashion risk when the area was just forming its own identity, said Fraser Ross, Kitson’s owner.

In 2000, a square foot of commercial space cost only $5. But most recently, prices have climbed to more than $17 per square foot on the most popular stretch of Robertson, the two blocks just north and south of Alden Drive, where Kitson, at 115 S. Robertson Blvd., happens to be located. “All of us are fighting,” Ross said. “Our rents are ridiculous.”

Established fashion brands, such as New York–based Coach, have long been interested in opening boutiques on Robertson. They specifically are interested in the two premier blocks on the boulevards, said Chuck Dembo, a partner in Beverly Hills, Calif., real estate firm Dembo & Associates.

“People from out of state and overseas are realizing that Robertson is a place where fashions and brands are discovered,” he said.

In recent years, Ted Baker and BCBG Max Azria—two upscale national retail chains—have moved onto Robertson Boulevard to take advantage of the electric mix of Hollywood celebrities who lunch at places such as The Ivy, at 113 N. Robertson Blvd., in between shopping sprees. Ted Baker, a British designer label and retailer, opened a store at 142 S. Robertson Blvd. on June 8, 2005, and BCBG Max Azria, a Los Angeles brand that caters to the contemporary market, opened a store at 154 S. Robertson Blvd. several years ago.

Rent worries

Robertson’s boutique owners are getting jittery that skyrocketing rents will put the street in danger of losing its independent identity, said Alison Muh of Los Angeles–based accessories brand Surly Girl, which has a store at 116 N. Robertson Blvd. “It’s a trend-setting place where boutiques take a lot of risks on new designers,” she observed. “It won’t happen if Coach and BCBG take up the street.”

Big companies with well-known brand names are typically the businesses that can afford to pay high store rents, as witnessed on Rodeo Drive, which is filled with global brands. On Rodeo, stores are renting for $35 a square foot and more.

While the 100 north and south blocks of Robertson increasingly look like a retail row for well-recognized brands—such as True Religion, Tory Burch and American Apparel—owners still consider the street a burgeoning opportunity.

That’s because the lesser-known parts of Robertson, such as the stretch between Third Street and Melrose Avenue, are still affordable, fetching retail-store prices that range from $3.50 to $11 per square foot, Dembo said.

High-end menswear boutique Avedon opened on 322 S. Robertson on Dec. 22. Although the boutique is more than one block south of the street’s busiest section, the location is an improvement over its old digs close to the Pacific Design Center in West Hollywood, Calif., according to Avedon partners Reza Shekarchian and Yasmine Farmanara.

Robertson Boulevard’s pedestrian traffic also has been called slow in the northern, upper reaches of the street. Chris Rosaasen opened a boutique for his streetsmart golf fashion brand Rosasen at 450 N. Robertson Blvd. in November 2003. “We thought we would get overflow from Robertson,” he said. “People weren’t walking up that way.”

Because of higher rents, young companies rarely make a bid for Robertson, Dembo said. They typically opt to look for more affordable commercial property on retail streets such as Abbot Kinney Boulevard in Venice Beach, Calif., and Larchmont Boulevard and West Third Street in Los Angeles.

But Robertson still lures a few up-and-coming brands, such as the tattoo-inspired Yellowman. It opened a flagship boutique on Robertson on Nov. 1, 2005. The heavy tourist traffic on the street and the focus on unique fashions make a Robertson location an important investment, said Roger Mui, Yellowman’s store director. “This is where a lot of people come to see new fashions,” he said.