Property News Colliers Top global retail destination themes revealed by Colliers International

Global Retail

New research undertaken by Colliers International explores a number of premier retail streets and destinations worldwide and reports on the rental levels currently being achieved.

The briefing paper, in conjunction with West End Business Improvement Districts (BIDs), New West End Company (NWEC), and the Heart of London Business Alliance, titled “Global Premier Streets and Destinations” also investigates how these top retail districts and destinations have remained so compelling and competitive throughout the global recession and identifies those common factors that have contributed towards their success.
The rental values achieved in a cross-section of top global shopping and entertainment destinations continues to show strong growth between 2009 and 2010 in most locations.  A number of the locations, including New York, Hong Kong and London’s West End, have seen a double digit annual rental uplift. New York’s Fifth Avenue has the highest rent from the sample locations.
The briefing paper has found that the global premier streets and destinations can be ranked as follows, with corresponding rental values for December 2010:

  1. Fifth Avenue, New York, USA (£1,494 per sq ft)
  2. Russell Street, Causeway Bay, Hong Kong (£836 per sq ft)
  3. Avenue des Champs Élysées, Paris, France (£799 per sq ft)
  4. Madison Avenue, New York, USA (£662 per sq ft)
  5. West End, London, UK (£335-600 per sq ft)*
  6. Bahnhofstrasse, Zurich, Switzerland (£590 per sq ft)
  7. Via Monte Napoleone, Milan, Italy (£543 per sq ft)
  8. Ginza-Chuo Avenue, Tokyo, Japan (£388 per sq ft)
  9. Graben, Kohlmarkt & Mariahilfer Strasse, Vienna, Austria (£336 per sq ft)
  10. Rodeo Drive, Los Angeles, USA (£288 per sq ft)
  11. Grafton Street, Dublin, Ireland (£258 per sq ft)
    *Overall rental, not Zone A

The briefing paper concludes that the premier retail streets and destinations that continue to succeed are those that evolve and re-invent their mix, depth and quality of offer. For example, the Champs Élysées has in recent years been a finale post for the Tour de France and Vienna has become increasingly more fashionable as a congress city.

Farrah Hassan-Hardwick, Director, Development Solutions at Colliers International and author of the briefing paper, said:

“Despite the ongoing economic uncertainty, the global destinations that have been singled out by this briefing paper continue to attract millions of visitors. This is due to the rich variety, mix and scale of the retail, entertainment and cultural experiences, together with their unique and eclectic offer.  These destinations remain competitive, compelling and have enduring appeal, thus showcasing the personality of each city.” 

Richard Dickinson, Chief Executive of New West End Company representing 600 businesses in Bond Street, Oxford Street and Regent Street commented:

“The research provides a strong steer to understanding top retail & leisure destinations. The West End encompasses the largest number of international brands and flagship stores with a rich mix of entertainment and cultural attractions. With West End sales up over 7% in 2010 and many of our stores performing stronger here than other sites around the world it is no wonder that demand to be located in London’s West End is at a record high.”

Sarah Porter, Chief Executive, Heart of London Business Alliance, also commented:

“This briefing paper demonstrates the number of factors that are intrinsic to the success of the world’s top destinations when it comes to the retail, entertainment and cultural experience for residents and visitors.  From our point of view, this validates the work that has been carried out and is currently being planned for London’s West End. Leicester Square is a shining example of how a world famous area is being transformed through a confident private and public sector investment plan, reinventing itself and its appeal as a 'must see' destination in its own right".