Yesterday we spoke about the growing divide between what I am calling machine-centred and human-centred real estate (feel free to suggest better titles in the comment section below). Machine-centred assets are introverted. By definition, they do not need to engage their environmental context. They are utilitarian spaces optimized for machine efficiency. Human-centred spaces, on the other hand, are extroverted spaces.
A prime example of this is the approach taken by luxury conglomerate LVMH:
- Trophy Real Estate: LVMH sees value in prime urban real estate in the world’s top global cities. In 2023, the company spent €2.45 billion on real estate in cities like Paris, London, and New York.
- Mixed-Use Placemaking: Stores are no longer just stores. They are mixed-use places that blur the lines between retail, culture, food and beverage, hospitality, and whatever else strengthens the core brand.
- High Street Bias: Between July 2024 and July 2025, JLL found that 59% of new luxury store openings across the US were in open-air, street-level locations. The three most active areas in the US were Madison Avenue, Fifth Avenue, and SoHo.
A big part of this strategy is naturally about complete control. By owning standalone real estate assets in prime urban locations, brands can decide if they want to clad a 15-storey building in monogrammed Louis Vuitton trunks. But implicit in this desire is a recognition that the human experience is paramount when it comes to luxury. Emotional immersion, physical discovery, and a curated brand story are all part of the offering.
Physical spaces also provide a platform for signaling identity and status, which is primarily why people buy luxury products in the first place. Machines can optimize for function, but human-centred spaces create the emotion that fuels some of the world’s most valuable real estate.
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