NEW YORK CITY — Fifth Avenue in Manhattan has retained its No. 1 ranking as the world’s most expensive retail destination at approximately $2,000 per square foot, which is unchanged from last year.
That’s according to the 33rd edition of the Cushman & Wakefield (NYSE: CWK) Main Streets Across the World, an annual report that examines retail rental rates around the world in “high street” locations, referring to bustling, high-end retail districts.
Fifth Avenue is world-renowned for its luxury offerings, including Bergdorf Goodman, Prada, Saks and Tiffany, among others. Additions to Fifth Avenue’s retail store count this year include a new store for Harry Winston and newcomers to the corridor Asics, Dyson, Skechers, Johnston & Murphy and Bandier, according to online directory Visit 5th Avenue.
While on par with the rents charged last year, Fifth Avenue’s average retail rate is up 14 percent from pre-pandemic levels, making it only one of three high streets in the top 10 that have increased rates since that time span.
The No. 2 retail destination in Main Streets Across the World is Milan’s Via Montenapoleone at $1,766 per square foot. The district jumped a spot into second from last year’s report by pushing rental rates 20 percent year-over-year and 31 percent from pre-pandemic levels.
Via Montenapoleone displaced Hong Kong’s Tsim Sha Tsui, which placed third in 2023 at $1,493 per square foot. Tsim Sha Tsui’s rental rates are up 4 percent year-over-year but down 39 percent compared to pre-pandemic levels.
Rounding out the top five are New Bond Street in London ($1,462 per square foot) and the Avenues des Champs-Élysées in Paris ($1,120 per square foot), which both retained their Nos. 4 and 5 rankings from last year’s report, respectively. Both New Bond Street and Avenues des Champs-Élysées are unchanged from last year’s rates and are still below pre-pandemic levels.
The biggest mover in the report was Istiklal Street in Istanbul, up from 31st to 20th position, as inflation caused rents to more than double over the past year in the Turkish metropolis. In addition to Istiklal Street, which has had a 63 percent increase from pre-pandemic levels, the high streets that have had the biggest jumps since 2020 include No. 13. HCMC in Vietnam at $390 per square foot (up 40 percent) and No. 39 Sao Paulo’s Oscar Freire Jardins in Brazil at $72 per square foot (up 54 percent).
The Cushman & Wakefield report focuses on headline rents in best-in-class urban locations across the world which, in many cases, are linked to the luxury sector. The rental values in this segment have been relatively immune to additional discounts, incentive packages or shared-risk rental models that have become more prominent in the wider retail markets globally.
Cushman & Wakefield’s research has found that prime retail destinations have continued to rebound from the worst of the COVID-19 pandemic, recording mostly positive rental growth over the past year. Rents across global prime retail destinations continued their ongoing recovery, increasing on average 4.8 percent in local currency terms over the past year, according to the report.
“The retail sector has continued to face issues head-on while demonstrating its resiliency,” says Barrie Scardina, Cushman & Wakefield’s head of Americas retail.
To view the full report, click here.
— John Nelson