New York’s Fifth Avenue retains its place as the most expensive shopping street in the world, with rents stable compared to last year at €20,384/m²/year, according to the latest study by Cushman & Wakefield, “Main Streets Across the World.
Furthermore, Via Montenapoleone in Milan rose to second place with a 20% increase in commercial rents (€18,000/m²/year), thus supplanting Tsim Sha Tsui, in Hong Kong, which took third place in the ranking with a more modest growth in rents of 4% to reach €15,219/m²/year. New Bond Street in London and Avenue des Champs-Elysées in Paris appear in 4th and 5th place in the world ranking, with rents of €14,905/m²/year and €11,414/m²/year respectively.
Europe thus has three of the five most expensive shopping streets in the world, with Via Montenapoleone in Milan, New Bond Street in London and Avenue des Champs-Élysées in Paris. It also concentrates five arteries out of the first ten in the ranking.
According to Rob Travers, Head of EMEA Retail at Cushman & Wakefield, “vacancy remains limited in prime retail locations, leading to competitive pressure which is reflected in rents when rare locations become available. As concerns over reduced household consumption spending have affected the economy, retailers have secured and consolidated the presence of their flagship stores in their target markets. These locations are an essential part of a brand’s development strategy. They are the physical embodiment of the latter, a notion difficult to establish in a digital environment. This dimension is often reinforced by an offer of tailor-made products that can only be purchased in store, thus directing customers towards more experiential consumption. »
Rents for prime locations continue to recover
As the world continues to recover from the impacts of the pandemic, prime commercial locations have also continued their recovery, recording mostly positive rent growth over the past year, according to Cushman & Wakefield.
Rents on prime streets have increased by an average of +4.8% in local currency over the past year. The strongest growth was recorded in Asia-Pacific with an average of +5.3%, followed by the American continent with an average of +5.2% and Europe with +4.2%.
The French market occupies half of the ranking of the 10 most expensive arteries in Europe, a presence ensured by the Parisian luxury arteries which have been very active in recent months under the energizing effect of the prospect of the Olympic Games.
“The rebound in sales observed for nearly 20 months on luxury or prestige streets has had the effect of maintaining the level of rental values thanks to sustained demand from major brands to open or reopen their flagships there before the Olympic Games” , concludes Christian Dubois, Head of retail services France.
*Find the entire Cushman & Wakefield study in an associated document.
2023-11-21 13:49:00
#Cinquième #Avenue #York #conserve #son #leadership
