New York Tops Ranking of World's Most Expensive Shopping Locations

14 Nov, 2007, Toronto/Vancouver

Canadian street fronts show good value compared to the global market

Rents reach US$1,500 per square foot in New York’s Fifth Avenue for the first time.
India is the highest riser in the ranking of the world’s most expensive shopping locations.
Chicago sees the biggest rise in terms of retail rents.
Bloor Street, Toronto; and Robson Street, Vancouver drop three spots

New York retains its title as the world’s most expensive shopping destination in this year’s edition of Main Streets Across the World, the annual publication by global real estate consultant, Cushman & Wakefield.

An average 1,000 sq ft/93 sq m unit on at Fifth Avenue’s most expensive stretch, along the golden corridor between the junctions with 49th and 59th Street, now costs around US$1.5mn a year, up 11 per cent on last year.

Main Streets Across the World (MSATW) is this year launched at MAPIC, the international market for retail real estate taking place in Cannes, France, on 14-16 November. The report tracks retail rents in the world’s top 231 shopping locations across 44 countries. The global league table is drawn up by taking the most expensive location in each of the countries monitored.

In Canada, both Bloor Street in Toronto and Robson Street in Vancouver fell three spots in the overall rankings, with no year-over-year change in the rental rates. Despite this, demand from both domestic and foreign retailers remains extremely strong for space on these prime streets.

“Demand for prime locations along these strips is incredibly high – the trend in both markets is for retailers to expand vertically, and to use existing space more creatively,” said John Crombie, Senior Managing Director and National Practice Leader, Cushman and Wakefield LePage. “Pressure on rental rates is continuing to be strong, despite the higher Canadian dollar and the potential for fewer tourists shopping these areas.”

John Strachan, Cushman & Wakefield’s Global Head of Retail, comments: “We are seeing the emergence of a line-up of global shopping destinations, whether Fifth Avenue in New York, Causeway Bay in Hong Kong or Avenue Champs-Elysées in Paris, where retailers are using flagship stores in prestige locations to leverage the value of their brands. These locations are not just attracting local shoppers, but shoppers from around the world, whose very reason to travel is quite often to shop, while the driving force in many of the Asia Pacific locations is also the emergence of a middle class with money in their pockets.”

Regarding New York’s Fifth Avenue, Gene Spiegelman, Executive Director of Cushman & Wakefield in New York, says: “Fifth Avenue has maintained its dominant position as the world-class destination for global brands looking to establish a retail presence.”

THE WORLD’S MOST EXPENSIVE SHOPPING STREETS

Rank 2007	Rank 2006	Country	Cities	Location
1	1	US	New York	Fifth Avenue
2	2	Hong Kong	Hong Kong	Causeway Bay
3	3	France	Paris	Avenue des Champs Elysées
4	4	UK	London	New Bond Street
5	5	Japan	Tokyo	Ginza
6	6	Ireland	Dublin	Grafton Street
7	7	Switzerland	Zurich	Bahnhofstrasse
8	8	Australia	Sydney	Pitt Street Mall
9	10	Greece	Athens	Ermou
10	9	South Korea	Seoul	Gangnam Station
11	=10	Germany	Munich	Kaufingerstraße
12	=14	Italy	Milan/Rome	Via Montenapoleone /Via Condotti
13	12	Spain	Madrid	Preciados
14	13	Singapore	Singapore	Orchard Road
15	17	Austria	Vienna	Kärntnerstraße
16	24	India	New Delhi	Khan Market
17	16	Denmark	Copenhagen	Strøget
18	15	Russia	Moscow	Tverskaya
19	20	China	Beijing	Wanfujing
20	18	Czech Republic	Prague	Na Prikope/Wenceslas Square
=21	21	Netherlands	Amsterdam	Kalverstraat
=21	19	Norway	Oslo	Karl Johan Gate
23	27	Malaysia	Kuala Lumpur	Suria KLCC
24	26	Brazil	São Paulo	Iguatemi Shopping
25	22	Canada	Toronto/Vancouver	Bloor Street/Robson Street
26	23	Belgium	Brussels	Rue Neuve
27	25	Finland	Helsinki	City centre
28	=28	Hungary	Budapest	Váci utca
29	32	New Zealand	Wellington	Lambton Quay
30	30	Romania	Bucharest	Bulevardul Magheru
31	31	Sweden	Stockholm	Biblioteksgatan
32	=28	Bulgaria	Sofia	Vitosha Blvd
33	33	Turkey	Istanbul	Abdi Ipekci (European side)
34	34	Taiwan	Taipei	ZhongXiao E. Road
35	36	Israel	Tel Aviv	Ramat Aviv
36	=38	Poland	Warsaw	ul. Chmielna/ul. Nowy Swiat
37	n/a	Lebanon	Beirut	ABC Centre Achrafieh
=38	35	Portugal	Lisbon	Baixa
=38	=38	Slovakia	Bratislava	Downtown
40	41	Thailand	Bangkok	City Centre
41	40	South Africa	Johannesburg	Sandton City
42	42	Mexico	Mexico city	Mazaryk/Perisur
43	37	Argentina	Buenos Aires	Avenue Santa Fe
44	46	Philippines	Manila	Makati CBD

Rank 2007	Location	Rent € /sq.m /year	Rent US$ /sq.ft /year
1	Fifth Avenue	11,983	1,500
2	Causeway Bay	9,688	1,213
3	Avenue des Champs Elysées	7,364	922
4	New Bond Street	6,498	814
5	Ginza	5,459	683
6	Grafton Street	5,340	669
7	Bahnhofstrasse	3,926	492
8	Pitt Street Mall	3,905	489
9	Ermou	3,600	451
10	Gangnam Station	3,441	431
11	Kaufingerstraße	3,120	391
12	Via Montenapoleone/ Via Condotti	3,000	376
13	Preciados	2,880	361
14	Orchard Road	2,597	325
15	Kärntnerstraße	2,400	300
16	Khan Market	2,236	280
17	Strøget	2,227	279
18	Tverskaya	2,226	279
19	Wanfujing	2,137	268
20	Na Prikope/ Wenceslas Square	2,040	255
=21	Kalverstraat	2,000	250
=21	Karl Johan Gate	2,000	250
23	Suria KLCC	1,663	208
24	Iguatemi Shopping	1,596	200
25	Bloor Street/Robson Street	1,584	198
26	Rue Neuve	1,580	198
27	City centre	1,500	188
28	Váci utca	1,440	180
29	Lambton Quay	1,430	179
30	Bulevardul Magheru	1,380	173
31	Biblioteksgatan	1,302	163
32	Vitosha Blvd	1,200	150
33	Abdi Ipekci (European side)	1,176	147
34	ZhongXiao E. Road	1,106	138
35	Ramat Aviv	1,069	134
36	ul. Chmielna/ ul. Nowy Swiat	960	120
37	ABC Centre Achrafieh	928	116
=38	Baixa	900	113
=38	Downtown	900	113
40	City Centre	696	87
41	Sandton City	650	81
42	Mazaryk/Perisur	556	70
43	Avenue Santa Fe	365	46
44	Makati CBD	230	29

Source: Cushman & Wakefield

The world ranking sees little movement at the top, with Hong Kong (Causeway Bay) retaining its second place and Paris (Avenue des Champs Elysées) its third place.

Regarding the way ahead, John Strachan says: “We are seeing no signs of let-up in the demand for the right space in the right location, despite the anticipated slowdown in the global economy for 2008. Retailers are continuing unabated with their aaggressive drive into new markets, both mature and emerging. This in turn is helping to support and, indeed, increase rents in key retail locations around the world, where availability is tight and turnover of units is limited.”

For further information, please contact:

The Press Office

Cushman & Wakefield EMEA

Tel: 44 20 7935 5000

Notes to Editors:

1. Main Streets Across the World is based on data collected in June 2007 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.

-30-

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 201 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

back to real estate News & Events

Printer Friendly Version

Contact Us

For further information, please contact:

Brad Dugard
(416) 359-2545

More contacts