Rents at London’s New Bond Street have risen by 2.3% during the past year, as it continues to top the rankings as the most expensive shopping street in Europe.
Annual rents in New Bond Street have reached $1,714 (£1,340) per sq ft according to the latest research from Cushman & Wakefield, which tracked rents for 448 locations across 68 markets.
The thoroughfare was the third priciest street globally, behind Hong Kong’s Causeway Bay and New York’s Upper Fifth Avenue.
The report said that retail rents in Hong Kong have stayed resilient despite the recent protests, although the outlook is more uncertain.
Causeway Bay, which replaced Upper Fifth Avenue as the most expensive shopping area globally in 2018, recorded rents of $2,745 per sq ft per annum this year.
Upper Fifth Avenue was found to be charging rents at $2,250 per sq ft per year.
The Avenue des Champs Elysées in Paris ($1,478 psf/yr) and Milan’s Via Montenapoleone ($1,447 psf/yr) completed the top five.
The biggest rental rise in the top 10 this year was Sydney’s Pitt Street Mall, after rents soared by 17.9% to reach $1,076 per sq ft.
Half of the top 10 global locations were in Europe, with four in Asia and just one in the US.
In Europe, Zurich’s Bahnhofstrasse ($866 psf/yr) and Vienna’s Kohlmarkt ($513 psf/yr) rounded off the top five. Dublin’s Grafton Street ranked seventh ($401 psf/yr).
Ermou in Athens posted the largest rental rise in Europe, surging by 14% to reach $361 per sq ft per year. Overall, rents in around 70% of locations in Europe were stable or up on last year.
Across the Asia Pacific, rents in more than 80% of locations either grew or were stable. India was highlighted as a “particularly strong” performer.
Meanwhile rents in Canada and the US were under pressure in many areas. However, the report stated that rents in New York’s streets appear to be stabilising, after dropping in recent years. Latin American retail markets continued to mature, but were more volatile.
Darren Yates, head of EMEA retail research at Cushman & Wakefield, said: “Rents on the world’s top retail streets have been fairly stable and there is greater clarity on where retail is heading.
“However, there is downward pressure on rents in many weaker locations, particularly in the more mature markets of Europe and North America. In Asia Pacific, retail has generally performed well across a very diverse group of markets.
“While quantifying the value of the store has become more difficult, it remains an important touchpoint for the consumer and generates both in-store and online sales by acting as a showroom and creating a wider brand presence – the so-called ‘halo effect’.”
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.”
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