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Oscar Freire remains among the most expensive rentals in the world

1/4/2024

Rents in key global retail destinations continued their steady recovery, increasing by an average of 4.8% compared to last year. The strongest growth was recorded in Asia-Pacific, averaging 5.3%, the Americas at 5.2% and Europe at 4.2%.

Brazil appears in the global and Americas ranking
In Brazil, Rua Oscar Freire, in the city of São Paulo, is the only location in the global ranking, with the 38th most expensive retail rental in the world. In the Americas, it occupies 26th place in the ranking, followed by Rua Garcia D'Ávila, in Ipanema, in the city of Rio de Janeiro.

Global panorama
Despite comparatively strong growth over the past year, in most cases, the increase in incomes has not kept up with high inflation rates. Additionally, nearly 60% of markets globally remain below pre-pandemic rent levels.

As the world continues to emerge from the impacts of the global pandemic, key retail destinations have similarly continued to recover, particularly recording positive results in rent growth compared to last year.

Globally, rents have increased by an average of 4.8% over the past 12 months. Asia-Pacific led the world in 2023 with 5.3%, which was a strong improvement from the 1.1% growth recorded in the previous year.

Luxury retail
To say that the luxury sector has not been affected by current economic conditions would be wrong. The latest profit figures from major luxury retailers were below market expectations. This is undoubtedly due to the fact that part of its customer base has been inflated because of pandemic-related issues as households have redirected spending elsewhere.

Unfortunately, a secondary effect has been an increase in the amount of crime, especially robbery. In the US, this totaled $112 billion in 2022, a 20% increase from 2021, according to the National Retail Federation.

This increase has been noticed in several places and led several retailers to increase spending. Consequently, brands have had to increase security in stores. Recent research highlights that brands expect to increase their security allocation budgets by an average of 28% over the next three years. Additionally, one in five expects to increase their allocation by more than 40%.

While technologies like RFID and AI are part of the solution, the amount of security personnel in stores will also need to increase. The challenge is to achieve greater security without interfering with the customer experience.

Click here to access the full Main Streets Across the World 2023 report.

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