News

15th November 2017

Dublin’s Grafton Street Ranks Thirteenth Most Expensive Retail Street

  • New York’s Upper 5th Avenue remains world’s most expensive street, followed by
    Hong Kong’s Causeway Bay
  • 37.5% increase in rents sees London’s New Bond Street overtake Paris’s Avenue des Champs Élysées, which falls to fifth position in the global ranking
  • Milan’s Via Montenapoleone rises to fourth place

 

LONDON, 15 November 2017 – Soaring rents have seen London’s New Bond Street rise to become the world’s third most expensive retail street, while New York’s Upper 5th Avenue and Hong Kong’s Causeway Bay retain their first and second place rankings, according to Cushman & Wakefield.

 

The annual Main Streets Across The World report, now in its 29th edition, tracks 451 of the top retail streets around the globe and ranks the most expensive in 68 countries by prime rental value utilising Cushman & Wakefield’s proprietary data.

 

Upper 5th Avenue remains the most expensive main street in the world, with annual rents at an average of €28,262 per square metre per year (psm/yr), while Hong Kong’s Causeway Bay retains its second place position despite a 4.7% fall in average rents to €25,673 psm/yr.

 

London’s New Bond Street leapt into third place in the global rankings in 2017 as rents increased by over a third (in local currency) on the previous year to €16,200 psm/yr. The increase relative to other global destinations underlines the strength of London’s premium retail offer and strong demand for prime retail space in the West End.

 

Milan’s Via Montenapoleone, where rents rose 12.5% on the year to €13,500 psm/yr, was ranked fourth, while the Avenue des Champs Élysées in Paris, where rents are €13,255 psm/yr, fell to fifth place despite rents remained unchanged over the year.  

 

In Ireland, healthy demand from new entrants, including & Other Stories, Victoria’s Secret and Urban Decay, has helped drive rental growth on Dublin’s Grafton Street, where rents have increased by 9.8% over the last

12 months. The street remains a popular destination for mass market and luxury retailers alike. Limited availability of quality retail space on both Grafton Street and Henry Street is encouraging occupiers to explore

neighbouring streets. 

 

Karl Stewart, Director, Retail, Cushman & Wakefield Ireland said  “Overall shop rents on Grafton Street have seen rental growth of 9.8% in the past year, which could be considered modest in comparison to some other European cities. In Dublin we are forecasting continued growth over the short term, albeit at more modest levels.

 

We are seeing the revitalisation of the streets surrounding Grafton Street, which will only enhance the vitality and attractiveness of the city centre offering and will further strengthen our two prime Streets. Henry Street has also experienced growth over the past year, with new additions to the street including a flagship Elverys. There are also new store openings in negotiations for early 2018”. 

 

 

Report author Darren Yates, Head of EMEA Retail Research at Cushman & Wakefield, said: “Despite a lot of negative headlines, global retail remains as dynamic and vibrant as ever in response to technological and demographic change across the world. Premium retail destinations, including New York’s Upper Fifth Avenue, Hong Kong’s Causeway Bay and London’s New Bond Street, are highly sought after by international brands seeking to create engaging retail experiences that offer something new and exciting. The most innovative retailers are combining their online and physical platforms to create a seamless omni-channel experience for the customer, but profile and location play such a crucial role in the premium retail experience.”

TOP 10 MOST EXPENSIVE LOCATIONS BY COUNTRY (source: Cushman & Wakefield)

 

Rank
2017

Rank
2016

Location

2017 RENT
€/sqm/yr

1

1

New York, Upper 5th Avenue (49th - 60th Sts)

28,262

2

2

Hong Kong, Causeway Bay

25,673

3

4

London, New Bond Street

16,200

4

6

Milan, Via Montenapoleone

13,500

5

3

Paris, Avenue des Champs Élysées

13,255

6

5

Tokyo, Ginza

11,308

7

7

Sydney, Pitt Street Mall

9,422

8

8

Seoul, Myeongdong

8,598

9

9

Zurich, Bahnhofstrasse

8,310

10

10

Vienna, Kohlmarkt

4,620

 

EMEA region

London’s major thoroughfares are some of the most desirable and expensive streets in the world, with rents in New Bond Street, ranked third in the global table, increasing by 37.5% to €16,200 psm/yr. Although there was a pause in activity in London in the initial aftermath of the EU referendum, the start of 2017 brought a resurgence in leasing deals.

 

Demand for prestigious Paris locations such as the Avenue des Champs Élysées, Avenue Montaigne and Rue Saint Honoré was resilient in the face of political uncertainty in the lead up to the French general election. Paris’s prime retail locations benefited from strong footfall generated by domestic and overseas visitors, as international tourism recovered strongly during 2017.

 

High Street prime rents in Italy have generally been stable over the last year, with significant upward adjustments only recorded in major cities where activity is sustained by tourism. Rents in some streets in Milan, Turin and Florence recorded particularly strong growth.

 

Justin Taylor, Cushman & Wakefield’s Head of Retail, EMEA, said: “While challenges and uncertainties remain, Europe’s retail recovery has continued and a further strong performance is anticipated for 2018. Half of the top 10 most expensive high streets are in Europe which reflects strength of demand. Prime locations have the edge in attracting the most innovative and premium brands, and rising rents in some areas have been helped by strong tourist numbers. This includes the UK where the lower Sterling has increased visitor numbers significantly and London’s premium retail offer continues to thrive despite the noise around Brexit. Meanwhile, growth in Milan, Turin and Florence underlines Italy’s pulling power as a retail destination.”

 

Americas region

New York’s Upper Fifth Avenue (49th Street to 60th Street), continues to command the highest asking rent globally for direct and subleased retail space, with annual rents remaining unchanged on 2016 at €28,262 psm/yr. Elsewhere in New York’s Manhattan, however, a number of retail submarkets recorded lower asking rents and higher availability, including SoHo, Times Square and the Meatpacking district. 

 

Latin America’s main cities continue to develop high quality retail developments which cater for a rapidly growing middle class. Rents in Mexico City’s key retail streets recorded steady uplift to June 2017, rising to €998 psm/yr on the back of continuing economic stability.

 

Asia Pacific region

Hong Kong’s Causeway Bay remains the world’s second most expensive retail street, although rents on the main shopping streets continued to fall by around 5% over the course of the year. This follows a sharp decline in visitors from mainland China, which has prompted caution among many retailers, particularly at the upper end of the market.

 

Mainland China’s retail market continues to evolve as a rapidly growing consumer base of savvy, brand-aware shoppers seek out new and sophisticated retail experiences. Beijing’s Wangfujing is ranked 11th in the global table, with annual rents at €4,498 psm/yr. The city’s online retail market has experienced exceptionally strong growth and internet sales now account for circa 18% of the total, although 1.15 million sq.m of new space is expected to become available in the Fengtai and Tong Zhou districts in 2018 as new developments complete. 

 

About Cushman & Wakefield

Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients’ ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefield.com or follow @CushWake on Twitter.

-END-