New York’s Fifth Avenue has reclaimed its position as the world’s most expensive retail street. The data was released by global commercial real estate services firm Cushman & Wakefield, who said the average rents of 2,000 dollars per sq ft beat Hong Kong’s 1,436 dollars per sq ft and Milan’s via Montenapoleone at 1,380 dollars per sq ft.
It is the first time Milan has topped the list as Europe’s most expensive shopping street, surpassing London’s luxury hub on Bond Street and Paris’ Avenue des Champs Élysées.
In the annual Cushman & Wakefield report ‘Main Streets Across the World’, 92 cities are ranked for their prime rental value. This is the first report since the Covid-19 altered the world of retail, allowing insight into comparative performance pre- and post-pandemic.
Robert Travers, Head of EMEA Retail at Cushman & Wakefield, said: “The industry has been through one of the biggest stress tests imaginable over the past few years, but best in class retail real estate has remained robust. While we now face new economic challenges, the conversation has shifted from pessimism to retail´s omnichannel evolution.”
“Many brands are playing the long game and seeking to secure prime opportunities to adapt to ever demanding customer needs. With further investment in high-quality in-store experiences and advances in omnichannel approaches, we are confident in the resilience of the sector, particularly at the luxury end, and in key global destination cities.”
During the pandemic retail streets in APAC suffered the largest decline, with rentals falling -17 percent, compared to Europe -13 percent and the Americas -7 percent. The road to recovery has seen the strongest rebound in the US, where retail rents are up 15 percent compared to pre-pandemic commercial property pricers. Europe’s recovery has been less steady, and is down -8 percent compared to 2019. APAC has seen the slowest recovery, down -12 percent compared to 2019, due to ongoing border closures and regional lockdowns.
Despite the challenging near-term economic outlook, Cushman & Wakefield said “a wave of newcomers” are entering the market, exploring physical retail. Over the last 18 months, 75 percent of the retail transactions Cushman & Wakefield represented in EMEA were new leases, highlighting the value retailers place on a physical presence.
Article source: Cushman & Wakefield’s global report tracking 92 cities