The annual ‘Main Streets Across the World’ report tracks rents for 448 locations across 68 markets – the largest number ever included since it started in 1988. The report ranks locations by their prime rental value using Cushman & Wakefield’s proprietary data.
Last year Causeway Bay ended five years of domination by New York’s Upper 5th Avenue and in the 2019 rankings, it retains its position with rents to locate a store amounting to $2,745 per sq ft/ year (EURO 25,965 per sq m/yr). Upper 5th Avenue is in second place at $2,250 psf/yr (EURO 21,295 psq m/yr), with London’s New Bond Street third in the global list, with annual rents at the London thoroughfare having risen 2.3% in the past 12 months to $1,714 per psf/yr (EURO 16,222 psq m/yr).
The Avenue des Champs Elysées in Paris ($1,478 psf/yr / EURO 13,992 psq m/yr) and Milan’s Via Montenapoleone ($1,447 psf/yr / EURO 13,700 psq m/yr) complete the top five. The biggest rental rise in the top 10 saw Sydney’s Pitt Street Mall increase rents by a colossal 17.9% over the past 12 months to reach $1,076 psf/yr (EURO 10,185 psq m/yr). Five of the top 10 global streets were in Europe, with four in Asia and just one in the US.
Report author Darren Yates, Head of EMEA Retail Research at Cushman & Wakefield, said:
“In terms of rental performance, this year’s results are encouraging and demonstrate the resilience of the premier retail locations. Rents on the world’s top retail streets have been fairly stable and there is greater clarity on where retail is heading. However, there is downward pressure on rents in many weaker locations, particularly in the more mature markets of Europe and North America. In Asia Pacific, retail has generally performed well across a very diverse group of markets.
“Online sales continue to increase around the world, but while much of the narrative is focused on the challenges the internet poses for traditional bricks and mortar, the relationship between the two is more complex. While quantifying the value of the store has become more difficult, it remains an important touchpoint for the consumer and generates both in-store and online sales by acting as a showroom and creating a wider brand presence – the so-called ‘halo effect’. The most successful retailers will be those who best integrate their physical and online operations to create a seamless, positive brand experience for shoppers.”