LONDON: According to commercial real estate company Cushman & Wakefield, New Bond Street in London, home to brands including Burberry, Chanel, Chloé, Dior, Gucci, Hermès, Louis Vuitton, and Ralph Lauren, has been crowned the world’s most expensive retail destination for the first time, leaving behind Milan’s Via Montenapoleone, last year’s winner, and New York’s Upper Fifth Avenue, another strong contender.
In the global retail report ‘Main Streets Across The World’ by Cushman & Wakefield, which focuses on headline rents in 141 best-in-class urban locations across the world, London’s New Bond Street saw its rents increase by 22 percent in the past year to 2,231 US dollars per square foot per year.
Milan’s Via Montenapoleone, which became the first European street to top the global rankings last year, came second with 2,179 US dollars per square foot per year, while Upper Fifth Avenue in New York was 2,000 US dollars per square foot per year. Rounding off the top five streets were Tsim Sha Tsui (main street shops) in Hong Kong in fourth place, and Avenue des Champs Élysées in Paris in fifth, said a news report in Fashion United.
Other streets in the top ten included: Ginza, Tokyo; Bahnhofstrasse, Zurich; Pitt Street Mall, Sydney; Myeongdong, Seoul; and Kohlmarkt, Vienna.
Duncan Gillard, head of central London retail at Cushman & Wakefield, said in a statement: “New Bond Street’s rental growth has been fuelled by strong demand, limited supply, and continued investment in the public realm, all of which have reinforced its status as a global retail destination.
“The prime jewellery section between Clifford Street and Burlington Gardens in particular has become one of the most fiercely contested locations in global retail. This has seen many occupiers opting for long-term leases on strong rental terms to protect their position in this highly coveted location.”
Globally, the report reveals that rents grew on average at 4.2 percent, with 58 percent of markets experiencing rental growth. The Americas led regional rental growth at 7.9 percent, driven by currency effects in South America, while Europe experienced steady 4 percent year-on-year growth, with “standout performances” in Budapest and London.
Meanwhile, rents in Asia Pacific slowed to 2.1 percent, with strong growth in India and Japan offset by economic headwinds in Greater China and Southeast Asia.
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