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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
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
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.
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
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