After two successive years of lacklustre growth, the world’s top retail streets have begun to regain their vitality, as reflected by a general rise in rents in many premier shopping districts over the past year.
9 June 2011, London – This has been driven by both the expansion of existing retailers and new entrants looking to establish a foothold in the world’s most prestigious retail addresses, spurred on by strong consumer footfall and spending at said locations.
Six out of the top 10 retail high streets around the world can be found in Europe, those being: Old Bond Street, London; Bahnhofstrasse, Zurich; Via Monte Napoleone, Milan; Tverskaya Street, Moscow and Kaufingstrasse, Munich.
Retailer demand has bounced back particularly strongly in Tverskaya Street, Moscow, with Maxim Gasiev, Managing Director of Colliers International Russia, commenting: “Tverskaya Street is very much the destination of choice for international retailers entering the Russian market and this is reflected in the notable rental growth we have seen this year. As space on this street is now at such a premium we expect retailer demand for space on other prime streets in Moscow to show noteworthy increases in the years to come, with rents expected to rise accordingly in those areas.”
A key driver behind the robust occupational demand seen in prime retail centres has been strong consumer demand for luxury goods over the past year - a trend that many are expecting to continue throughout the rest of 2011 and into 2012 and beyond. This has led luxury retailers to compete strongly for the best retail pitches and drive significant rental growth in many locations.
Looking forward, with many emerging markets currently leading the global economic recovery ahead of more established economies, we expect the major international retailers to increasingly look beyond traditional locations and venture into markets previously viewed as too new or not deep enough.