New York’s Upper 5th Avenue has retained its spot as the world’s most expensive retail street, with London remaining in fourth place, despite decreased rental values in both locations, according to Cushman & Wakefield’s latest analysis.
Launched on the first day of MAPIC, the annual Main Streets Across the World report tracks 462 of the top retail streets around the globe, ranking them by their prime rental value.
Upper 5th Avenue, which saw its first decrease in annual rents psf (to $3,000) since the financial crisis, and Hong Kong’s Causeway Bay (at $2,878) are both more than twice as expensive as the leading street in any other country.
In Europe, Paris’ Avenue des Champs Élysées, where annual rents are $1,368 psf remains third ahead of New Bond Street on $1,283.
Across the UK strong occupier demand for high street locations, many of which are suffering from limited available units, resulted in positive rent performance.
This was particularly evident in London which saw some of the strongest rental growth across EMEA with retailers willing to pay a premium in order to secure sites and capitalise on healthy footfall figures.
London’s New Bond Street saw rents rise by 14.3% over the last 12 months, although this was outstripped by Covent Garden at 31.6% over the same period, followed by Sloane Street (27.3%).
Justin Taylor, Cushman & Wakefield’s head of retail in EMEA, said: “Retailers are facing technological advances head on, with more and more brands opting to offer online sales alongside, not instead of, a physical presence. They are also raising the customer experience bar with leading examples including Primark’s new store in Madrid and Apple’s refitted store on Regent Street in London.
“Demand is strong for the right space in the right location and the lack of supply along the majority of Europe’s main thoroughfares is seeing rents rise further and expanding the boundaries of well-established streets. This is exemplified by growth seen in some of London’s premier streets including Bond Street and Oxford Street.”
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