Dublin’s Grafton Street comes in at number 7 of the top 10 European streets at $401 psf/yr (EURO 3,794 psq m/yr). Among the top 10, Ermou in Athens saw the biggest rental rise of 14% to reach $361 psf/yr (EURO 3,420 psq m/yr). Overall, rents in around 70% of locations in Europe were stable or up on last year. Polarisation is evident, however, between the more established markets of North Western Europe and Southern, Central and Eastern Europe, where modern supply is lower and online sales have yet to really accelerate.
Boris van Haare Heijmeijer, Head of EMEA Retail at Cushman & Wakefield, said:
“Even at the top end of the luxury market, retailers are having to work harder than ever to increase or maintain customer footfall. This means diversifying their offer away from just pure sales or transactions. Customers want a destination or attraction as part of their brand experience and that means adding other services or partners such as food and drink or leisure activities. We expect this type of brand extension to continue as retailers seek to maintain the attention of their customers and to stay relevant.”
The Asia Pacific region is in a relatively strong position, with rents in over 80% of locations covered either rising or stable. India recorded a particularly strong performance, with solid rental growth across several cities, while retail rents in Hong Kong have been resilient in the face of the recent protests – although the outlook is more uncertain.
In the Americas rental trends have shown a wide degree of variation. Rents in Canada and the US remain under pressure in many areas, although there can be significant variations between individual streets. There is some good news in that rents in New York streets appear to be stabilising, following falls in recent years. Latin American retail markets continue to mature, although rents can be volatile.