Whilst New York’s Fifth Avenue retained the top spot as the world’s most expensive shopping street, London’s Old Bond Street has slipped down from fourth to fifth place in the table due to monumental rental growth by New York’s Madison Avenue.
The top ten line up also reveals that Paris’s Avenue des Champs-Élysées has fallen five places from fifth to tenth place.
The Top Ten Global Retail Rents USD/BPS* per sq ft/year:
- New York, Fifth Avenue - $3,052 (£1,900)
- Hong Kong, Queen’s Road Central - $2,087 (1,300)
- Hong Kong, Canton Road, Tsim Sha Tsui -$1,994 (1,241)
- New York, Madison Avenue - $1,325 (£824)
- London, Old Bond Street - $1,223 (£761)
- Hong Kong, Causeway Bay - $1,114 (£693)
- Zurich, Bahnhofstrasse - $930 (£579)
- Sydney, Pitt Street Mall - $871 (£542)
- Milan, Via Montenapoleone $836 (£520)
- Paris, Champs-Élysées $834 (£519)
Despite dropping a place in the rankings, demand for flagship space in London has continued to exceed supply, driven largely from international retailers seeking a share of the spoils. Rents on Old Bond Street have risen by 20% in the last year.
Download the Global Retail Highlights Report 2013
Mark Charlton, Head of UK Research and Forecasting at Colliers International, “London’s Luxury Quarter presents international shoppers with a unique retail proposition due to its distinguishing core streets juxtaposed with distinct culture and heritage. Demand from high end retailers has generated strong rental growth not only on Bond Street, but also the peripheral streets such as Dover Street, Conduit Street and South Molton Street. In addition, demand for international flagship stores has benefited Regent Street, which has witnessed double digit annual rental growth.
“Due to the lack of supply of prime units, luxury retailers such as Dior and Jimmy Choo are now looking to expand their space into additional floors of their existing premises in order to display their full range and accommodate VIP areas.”