New Bond Street in London has been named as the most expensive retail street by rental value in Europe, new data from Cushman & Wakefield shows.
The annual Main Streets Across the World report tracks 446 of the top retail streets around the globe, ranking them by their prime rental value according to Cushman & Wakefield’s data. It includes a list of the most expensive streets in 65 countries.
For the first time in five years, Hong Kong’s Causeway Bay has replaced New York’s Upper 5th Avenue as the world’s most expensive retail street by rental value.
A “significant decline” in New York rents has seen Upper 5th Avenue slip back to second place globally, with average rents at $2,250 (£1,730) per sq ft per year compared with $3,000 (£2,307) in the previous 12-month period.
Rent in Hong Kong’s Causeway Bay area is $2,671 (£2,054) per sq ft per year.
London’s New Bond Street comes in third place globally, with rents broadly flat year-on-year at $1,744 (£1,341) per sq ft per year.
Avenue des Champs Élysées in Paris is in fourth place, Milan’s Via Montenapoleone is in fifth, and Tokyo’s Ginza, which is the highest-ranked Asian street after Hong Kong, is the sixth most expensive.
In Europe, Kaunas in Lithuania provided the most affordable street at $19 (£14.70) per sq ft per year.
The strongest growth year-on-year was seen in Porto’s Baixa (Rua de Santa Catarina), with a rise of 30.4% to $98 (£75.82) per sq ft per year.
The biggest rental decline was in Istanbul’s Bagdat Caddesi which fell 24% to $178 (£137.71) per sq ft per year.
Four of the top 10 European cities are in Italy (Milan, Rome, Venice and Florence) and Germany’s top shopping street, Kaufinger/Neuhauser in Munich, places tenth.
Darren Yates, head of EMEA retail research at Cushman & Wakefield, said: “There is still a significant appetite for premium retail sites globally, with the top retailers using stores as part of their customer experience strategy.
“While global trends are not completely uniform, there are some common themes. The most notable include the continued growth of online, omnichannel retailing as standard and significant investment in store design.
”While technology is still a major disruptor in retailing, it is also enabling physical retail to fight back as it allows retailers to better understand their customers and to enhance the in-store experience.”