Retail rents buck the economic trend
Published: 01 September, 2011
Despite continued economic turbulence, global retail markets have rebounded strongly during the last year according to Cushman & Wakefield’s Main Streets Across the World report
Over four-fifths (81 per cent) of the 63 countries surveyed by the global real estate adviser recorded prime rents increasing or remaining static over the year to June. This represents a large increase on the previous year (66 per cent). Around one fifth of countries (19 per cent) saw rents falling, compared with over one third (34 per cent) in 2010.
New York’sFifth Avenue, where rents jumped by 21.6 per cent, retained its spot as the most expensive shopping street in the world for the tenth year running.CausewayBayin Hong Kong remained in second place andTokyo’sGinzain third.
ButLondon’sNew Bond Streetdropped two rankings, from fourth to sixth. TheLondonluxury destination fell behind Avenue des Champs-Elysées inPariswhich is now the most expensive retail location inEuropeafter a rental uplift of 5.3 per cent, compared with a decrease of 9.5 per cent last year.
Peter Mace, Cushman & Wakefield’s head of centrallondonretail, said: “WhileNew Bond Streethas dropped in the rankings, it remains one of the most sought after locations in the world for luxury brands, with demand far outstripping the supply of available accommodation. The last open market letting to take place in the prime section of the street was in December 2009 when169 New Bond Streetwas let to Piaget on a new 15-year lease at a record rent. There is no question that rental levels have increased over the past twenty months but to date, a landlord has not been able to secure vacant possession of a prime shop in order to create new market evidence. I am sure it is only a matter of time beforeBond Streetre-establishes itself close to the top of the rankings.”
