New York’s Fifth Avenue Retains its Top Ranking as the World’s Most Expensive Retail Destination
20 Novembro 2023 - 7:00PM
Business Wire
Retail Rents in Prime Global Locations Continue to Recover
Showing Resiliency
Cushman & Wakefield (NYSE: CWK) today released its 33rd
edition of Main Streets Across the World, examining retail 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: Full table of global rankings available here.
“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.
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version on businesswire.com: https://www.businesswire.com/news/home/20231121589940/en/
Michael Boonshoft Michael.boonshoft@cushwake.com
212-841-7505
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