New York’s Upper 5th Avenue named 2nd most expensive shopping street in the world

Retail

New York’s Upper 5th Avenue came second on the 30th annual list of most expensive retail streets in the world, published by real estate company Cushman & Wakefield. The fancy avenue was dethroned by Hong Kong’s Causeway Bay, which didn’t top the list since 2012. Causeway Bay retailers pay an average of 2671 US dollars per square foot a year in rent -- that’s 421 dollars more than your average Upper 5th Avenue location.

The two famous shopping streets are followed by New Bond Street, in London; Avenue des Champs Elysées, Paris; and Via Montenapoleone, Milan. A total of 65 countries were analyzed in the report.

Top 10 most expensive retail locations by country

Rank 2018	Rank 2017	Location	City	Country	Rent US$/sq ft/year
1	2	Causeway Bay (main street shops)	Hong Kong Island	Hong Kong *	2,671
2	1	Upper 5th Avenue (49th - 60th Sts)	New York	USA	2,250
3	3	New Bond Street	London	United Kingdom	1,744
4	5	Avenue des Champs Elysees	Paris	France	1,519
5	4	Via Montenapoleone	Milan	Italy	1,466
6	6	Ginza	Tokyo	Japan	1,219
7	7	Pitt Street Mall	Sydney	Australia	964
8	8	Myeongdong	Seoul	South Korea	908
9	9	Bahnhofstrasse	Zurich	Switzerland	854
10	10	Kohlmarkt	Vienna	Austria	515

*Hong Kong is a Special Administrative Region (SAR) within China
(source: Cushman & Wakefield)

According to Cushman & Field, Hong Kong’s retail market has experienced a rebound over the last year, driven mainly by a return of mainland Chinese tourists. Luxury brands are consequently interested in re-entering the market. Since the list was first coined in 1988, the number one spot has always belonged to streets in either Hong Kong or New York, with the exception of Ginza, in Tokyo, which managed to come first four times.

US dominates ranking of most expensive shopping streets in the Americas

In the Americas, all streets in the top 5 are located in the United States. Upper 5th Avenue is followed by Rodeo Drive, Los Angeles, where the average annual rent per square meter is much lower, at 875 US dollars. Union Square, in San Francisco, got the third place, followed by North Michigan Avenue, Chicago, and Lincoln Road, Miami.

Cushman & Field’s report emphasized that the most successful retailers are focusing more on customer service, rather than just offering products, thanks to a transforming retail landscape where major department stores are downsizing. “There is still a healthy future for the sector but we are moving to a ‘beyond retail’ phase driven by societal and technological change, meaning business models will also need to adapt”, commented Justin Taylor, Head of EMEA Retail at Cushman & Field, in a statement.

“As a result, traditional retail is therefore being resized, reinvented and reimagined. This is most evident in the US and the UK, both of which have felt the force of retailer restructuring and shrinking store networks in some sectors, as well as a downward readjustment of rents in some areas. Equally, however, the disruption is also creating opportunities for exciting new operators and formats to emerge”, concluded Taylor.

Photo: Pixabay, courtesy of Cushman & Field

cushman & Field

most expensive shopping streets