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Bloor and Robson Streets Move Up In Ranking Of World’s Top Shopping Streets
26 Oct, 2006, Toronto
New Delhi is this year’s biggest riser in the ranking of the world’s most expensive shopping locations in terms of retail rents, with the Indian capital up 17 places to 24th.
Retail rents have risen or remained stable in 97 percent of the 233 locations monitored across the world.
While New York’s Fifth Avenue has retained its top position as the world’s most expensive
shopping street in the world, two Canadian streets tied for 22nd place, up from
24th one year ago according to Main Streets Across the World, an annual
report by Cushman & Wakefield, the world’s largest privately held real estate services
Gene Spiegelman, Executive Director of Cushman & Wakefield in New York, said “The world’s top brands are jostling for position in this prime stretch of retail. This is not just about sales at the till, but about the brand value of retail real estate. In a world of advertising ‘clutter’, we see companies increasingly leveraging their brands through real estate.”
The trend-setting Abercrombie & Fitch flagship at 56th Street, and Nokia’s flagship on East 57th Street, which follow Apple Computer’s success at Fifth Avenue and 59th Street, as consumers continue to pursue advances in technology and communication, are among this year’s most high-profile openings on Fifth Avenue. Waiting in the wings is what may be the world’s highest value retail lease - that of the former Asprey store at Trump Tower at 56th Street.
Some of the hottest US retailers, like Crate & Barrel, Pottery Barn, Abercrombie & Fitch, Hollister and Apple Computer are looking to Canada as part of their short and mid-term expansion strategies, while other international retailers such as Mango used Canada as a spring board to enter into the US. The Canadian market has generally benefited from the infusion of international retailers with deep pockets, new brand offerings and innovative merchandising capabilities. Having said that, the heighten level of competition may result in there being “bigger, better and fewer” retailers in the future.
“Canada is continuing to make its mark on the global retail scene – with greater numbers of high-end international chains opening locations in prime urban markets,” said John Crombie, Vice President and National Retail Director of Cushman & Wakefield LePage. “International, American and domestic retailers are benefiting from a growing Canadian market with savvy consumers and a strong economy.”
Main Streets Across the World 2006 tracks retail rents in the world’s top 233 shopping locations across 47 countries around the world. The report’s global league table is drawn up by taking the most expensive location in each of the countries monitored.
John Strachan, Cushman & Wakefield’s Global Head of Retail, said: “Shopping is a global activity – from the main streets of Buenos Aires, to New York, Paris and New Delhi. Worldwide, the sector has seen a vibrant year, with new store openings, new formats, retailers entering new markets, in particular the emerging markets, and existing projects being refurbished in more developed markets to cater for evolving consumer and tenant demand.”
On a regional basis, Asia Pacific has seen the highest rental increases in local currency terms; rents are up 20 per cent in the year to June 2006. India’s retail locations have all seen big rental increases, and, adds Sebastian Skiff, Cushman & Wakefield’s Head of Retail in Asia Pacific: “In China, the government has recently approved a significant number of applications by foreign retailers, unlocking the doors for a flood of new retailers entering what is one of the world’s most dynamic emerging markets.”
Worldwide, rents rose or were stable in 97 per cent of locations monitored, falling in only three percent. Looking ahead, Darren Yates, Associate, European Research, Cushman & Wakefield, and the report’s author, said: “The demand for modern retail property will continue to grow worldwide, in particular with the opening up of large and increasingly wealthy consumer markets such as India, China, Brazil and Russia, where the demand for consumer goods is growing rapidly together with the need for top-class retailers and high-quality retail facilities.”
Notes to Editors: Main Streets Across the World is based on data collected in June 2006 from Cushman & Wakefield’s offices around the world. The data relates to the rent obtainable on a standard unit (frontage of six metres and depth of 25 metres) in a prime pitch.
Cushman & Wakefield LePage is the Canadian operation of Cushman & Wakefield, the world’s largest privately owned commercial real estate services firm with more than 11,000 professionals in 195 offices in 55 countries. The firm delivers integrated solutions by actively advising, implementing and managing on behalf of landlords, tenants, and investors through every stage of the real estate process. These solutions include helping clients to buy, sell, finance, lease, and manage assets. Cushman & Wakefield also provides valuation advice, strategic planning and research, portfolio analysis, and site selection and space location assistance, among many other advisory services. To find out more about Cushman & Wakefield, visit www.cushmanwakefield.com
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