Mapic 2012: Demand for space on Europe’s most luxurious shopping streets has pushed up rents by 4.5% over the year ended June 2012.
Cushman & Wakefield’s report on the European Retail Luxury sector, released at Mapic in Cannes this week, shows that rental growth on “super streets” such as Bond Street and the Champs Elysées had outstripped that on even Europe’s most expensive streets, which recorded an average increase of 1.7%, with the mass market seeing just a 0.5% lift in rents.
David Hutchings, head of research at C&W, said: “Against a backdrop of economic woe, Europe’s resilient super streets, which house the world’s top luxury brands, have gone from strength to strength this year, resulting in a heavily polarised retail sector across the region.
“A successful store can be a big driver of growth and as a result luxury retailers are competing for the most coveted shopping destinations, exerting upward pressure on prime rental values.”
Paris’ Avenue des Champs Elysées remained the most expensive location in Europe, commanding rents of €9,573 (£7,683) per sq m per year. Rents on the street increased by 30% during the year under review, widening the gap between it and London’s New Bond Street, where rents increased by 3.1% to €7,942 per sq m per year.
noella.piokivlehan@estatesgazette.com
