Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

New York’s Fifth Avenue Retains its Top Ranking as the World’s Most Expensive Retail Destination

24/10/2023

Retail rents in prime global locations continue to show resilience

New York City, November 20, 2023 - Cushman & Wakefield (NYSE: CWK) today released its 33rd edition of Main Streets Across the World, examiningretail rental rates in prime locations in cities around the world. 

  • New York’s Fifth Avenue retains its top ranking as the world’s most expensive retail destination, despite recording flat rental growth year-over-year (YOY). 
  • Milan’s Via Montenapoleone jumped a spot into second, displacing Hong Kong’s Tsim Sha Tsui, which placed third in 2023. 
  • New Bond Street in London and the Avenues des Champs-Élysées in Paris retained fourth and fifth positions, respectively. 
  • The biggest mover was Istiklal Street in Istanbul, up from 31st to 20th position, as rampant inflation caused rents to more than double over the past year. 

The report focuses on headline rents in best-in-class urban locations across the world which, in many cases, are linked to the luxury sector. The rental values in this specific segment have been relatively immune to additional discounts, incentive packages or shared risk rental models that have become more prominent in the wider retail markets globally.

“The retail sector has continued to face issues head on while demonstrating its resiliency. The near-term outlook for the retail sector remains cautious, but at the same time is nuanced between sub-sectors and geographical locations,” said Barrie Scardina, Head of Americas Retail. “At the macro level, the focus is on the strength of consumer spending. As central banks have undertaken one of the most aggressive interest rate hiking cycles in decades, consumers have shifted spending patterns and are reigning in non-discretionary expenditure.”

As the world continues to emerge from the impacts of the global pandemic, prime retail destinations similarly have continued their rebound, recording mostly positive rental growth over the past year.

  • Rents across global prime retail destinations continued their ongoing recovery, increasing on average 4.8% in local currency terms over the past year. The strongest growth was recorded in Asia Pacific, which averaged 5.9%, with Europe at 4.2% and the Americas at 5.2%.
  • Notwithstanding comparatively strong growth over the past year, in most instances, the increase in rents did not match levels of peak inflation.
  • Furthermore, almost 60% of markets globally remain below pre-pandemic rental levels. This is most evident in Europe where 70% of markets are below pre-pandemic rents. In contrast, in the U.S., only 31% are below pre-pandemic levels; 69% are above.

 

Global Ranking 2023

Global Ranking 2022

Market

City

Location

Rent (USD/sq.ft/yr)

Rent (EUR/sqm/yr)

Pre-pandemic to present (LCY)

YOY (LCY)

1

1

U.S.

New York City

Upper 5th Avenue (49th to 60th Sts)

$2,000

€20,384

14%

0%

2

3

Italy

Milan

Via Montenapoleone

$1,766

€18,000

31%

20%

3

2

Greater China

Hong Kong

Tsim Sha Tsui (main street shops)

$1,493

€15,219

-39%

4%

4

4

United Kingdom

London

New Bond Street

$1,462

€14,905

-11%

0%

5

5

France

Paris

Avenues des Champs-Élysées

$1,120

€11,414

-18%

0%

6

6

Japan

Tokyo

Ginza

$912

€9,299

0%

0%

7

7

Switzerland

Zurich

Bahnhofstrasse

$907

€9,243

-2%

1%

8

8

Australia

Sydney

Pitt Street Mall

$747

€7,612

-24%

0%

9

9

South Korea

Seoul

Myeongdong

$642

€6,542

-19%

5%

10

11

Austria

Vienna

Kohlmarkt

$506

€5,160

6%

2%

 

Note: View the full table of available global rankings.

“While mentions of the pandemic have largely slipped from the headlines, the world continues to manage its economic aftershocks. Supply chain bottlenecks along with fiscal and monetary stimulus have now given way to a period of high, although easing, inflation, rising interest rates and slowing economic growth. The macroeconomic trends which had become more evident in 2022 have continued through this year and will likely continue into the next,” said Scardina.

About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com.

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
MORE OPTIONS
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS