London’s New Bond Street has ranked as the world’s third most expensive street for retail rents, posting the highest level of year-on-year growth in Europe.
New Bond Street rents rose by 13%, significantly surpassing the global average rental growth of 4.4%, according to Cushman & Wakefield.
Rents increased by approximately £235 compared to the previous year, reaching £1,391 per sq ft annually.
In the first half of 2024, investment in central London retail rose by nearly 40%, reaching £672m compared to £485m during the same period in 2023, according to CBRE.
Italy’s Via Montenapoleone was named the world’s most expensive retail street, with rents reaching £1,620 per sq ft, up by 11%. New York’s Upper 5th Avenue ranked second at around £1,585 per sq ft, with no change in rents.
Limited space and high demand drove rental growth in 57% of 138 tracked locations, with declines in 14%, and 29% unchanged. This resulted in a global average rental increase of 4.4%.
The Americas led with an 8.5% rise, driven by an 11% surge in US rents, while Europe and Asia-Pacific followed at 3.5% and 3.1%.
Overall, rents averaged nearly 6% above pre-pandemic levels.
Robert Travers, head of EMEA retail at Cushman & Wakefield, said: “These globally iconic locations are characterised by intense competition for space and extremely limited supply, even in challenging retail market conditions.
“Brands, from luxury to mass market, are doubling down on their physical stores in the top locations as competition for consumer attention drives the need for a superior shopping experience and product showcase. While e-commerce plays a role in an omni-channel strategy, it is the physical embodiment of the brand that customers connect with. As a result, vacancy rates remain exceptionally tight which translates into the rents that retailers are willing to pay to secure and retain their space.”
Photo by Amer Ghazzal/Shutterstock (14919180d)
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