Retail rents on New Bond Street, W1, have stayed flat on the previous year, retaining its position as the world’s fourth most expensive shopping street.
New York’s Fifth Avenue kept the top spot in the global rankings, according to Cushman & Wakefield’s latest Main Streets Across the World report, which tracks prime rental values in key cities. Rents on Fifth Avenue remained static at $2,000 (£1,604) per sq ft.
On New Bond Street, rents stood at $1,462 per sq ft. The figure was down by 11% on pre-pandemic levels.
Sloane Street, SW1, was the second most expensive location in London, with rents growing by 5% year-on-year to $684 per sq ft. That was followed by Covent Garden, where rents were up by 5% to $621 per sq ft.
Oxford Street, W1, was the UK’s fourth costliest shopping area, posting a 4% rise in rents to $494 per sq ft. Brompton Road, SW3, was fifth, following a 3% uptick in rents to $482 per sq ft. Regent Street, W1, was in sixth place, up by 4% at $457 per sq ft.
Globally, Milan’s Via Montenapoleone climbed to second place after recording a 20% year-on-year increase in rents, to $1,766 per sq ft. It displaced Hong Kong’s Tsim Tsa Tsui, which fell to third after rents grew by 4% to $1,493 per sq ft.
The global top five was rounded out by Avenues des Champs-Élysées in Paris, which stayed steady at $1,120 per sq ft.
The report said retail rents in prime global locations continue to recover, growing by an average of 4.8% globally and 4.2% across Europe.
By region, the strongest growth was recorded in Asia Pacific, which averaged 5.3%, with the Americas at 5.2% and Europe at 4.2%.
Rob Travers, head of EMEA retail at Cushman & Wakefield, said: “Vacancy in super-prime retail locations remains tight, leading to competitive tension when rare sites become available, which feeds through to rents. Even as concerns over consumers cutting discretionary spending have been affecting the economy, retailers have been securing or enhancing flagship stores in key markets.
“These stores are a critical part of a brand’s retail equation. They are the physical embodiment of the brand, something that is very hard to curate in an online environment. Often this is reinforced with bespoke products only available for purchase in-store as they channel customers into real-world retail experiences.”
Peter Mace, co-head of central London retail at Cushman & Wakefield, said: “Mirroring luxury retail’s performance across Europe, the presence of New Bond Street in the global rankings speaks to the selective demand for the capital’s very best luxury location, with discretionary spending impacting areas that prioritise mid-market and high-street brands.
“We continue to see luxury brands actively enhance their in-store experiences, doubling down on exclusivity and service to attract high-end shoppers, as well as prioritising hospitality and amenities to curate a luxury experience beyond just products.
“New Bond Street’s enduring appeal and attraction for luxury retailers comes from its long-established reputation for exclusivity and prestige. It is this concentration of luxury brands, that will continue to fuel demand for London as one of the most desirable global retail addresses.”
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