Bond Street in London’s West End, which is home to retailer like Fenwick, Hugo Boss and Coach, is the world’s fourth most expensive shopping street with rents of $1,321 (£868) per square foot, according to research released today by commercial property agency Cushman & Wakefield.
The street is topped only by New York’s Fifth Avenue, Causeway Bay in Hong Kong and the Champs-Élysées in Paris.
Bond Street has seen its rents increase 12% in the past year. Within London, the next highest rents can be found in Covent Garden, which has seen an increase of 25% year on year to £762 per square foot, followed by Brompton Road in Knightsbridge, up 25.9% to £682 per square foot.
Regionally, Manchester and Edinburgh have seen rental growth of 4%. Rents in Sheffield have climbed 5%, while Leeds has seen rises of 2.3%.
Ireland has seen one of the largest rental rises, with units on Grafton Street in Dublin rocketing up 27.9%.
The report said demand continued to outstrip supply during the year and highlighted the arrival of international retailers such as Arc’teryx which recently took space in Piccadilly, Kikki-K which moved into Covent Garden and New Balance which took a store on Oxford Street.
Justin Taylor head of retail EMEA at Cushman & Wakefield said rents will continue to rise in the coming years.
“Indeed, a strong retail sales growth forecast, robust occupier demand and a continued lack of supply in many locations will sustain an upward pressure on the rents in the most popular high streets across Europe.
“Tight availability is shaping the retail landscape, pushing the geographic boundaries of well-established high street markets outward.”