Midtown Manhattan is the world's most expensive shopping location
- France's Avenue des Champs Elysees is the second most expensive shopping location.
Fifth Avenue and East 57th Street in New York City share first place as the world's most expensive retail location in this year's edition of Main Streets Across the World, an annual report by Cushman & Wakefield Healey & Baker.
With rents per square metre at US$7,535 per annum, the New York retail destination that stretches from 52nd to 58th on Fifth Avenue and then along East 57th Street to where it meets Madison Avenue is 20 per cent more expensive than Paris' Avenue des Champs Elysees, which is in second place. Meanwhile, rents on Madison Avenue, at US$6,997 per square metre, were the fastest growing in the US, showing an increase of 25 per cent.
London's Oxford Street is ranked the fourth most expensive retail location (after Hong Kong) with rents up 5.6 per cent in the last year. On average, retailers on Oxford Street are now paying US$4,676 per square metre per annum for prime space.
Main Streets Across the World 2002 shows the results of monitoring rental levels in 221 key shopping destinations in 44 countries around the world between June 2001 and June 2002. The least expensive of the world's 44 most expensive retail locations (see chart) is the Latvian capital of Riga - a retailers' bargain compared with New York, with annual rents at a mere US$420 per square metre.
David Gialanella, Executive Vice-President, National Retail Services in Cushman & Wakefield's New York World Headquarters, said: "Despite the events of 9/11 and the slowing US economy, the top areas of New York retail have experienced improved fortunes in 2002. This is against a fall in demand for retail space in secondary areas.
"The key Manhattan streets of Fifth Avenue, East 57th and Madison Avenue have enjoyed a renaissance as the world-class destination for the big names of international luxury retail," he added.
The junction of East 57th and Fifth Avenue is one of the world's most famous shopping spots. One corner is taken up by the new Louis Vuitton flagship store, which opens in 2003, while the three other corners are occupied by Tiffany's, Bvlgari and Van Cleef & Arpels.
On Fifth Avenue, new names this year include Boucheron and De Beers. Existing brands to commit to major expansions and relocations in Fifth Avenue include Asprey & Garrard, Ermenegildo Zegna and Faconnable. And East 57th has become home to Christian Dior and Jil Sander, and has also seen the expansion of Burberry.
Madison Avenue was the choice for Swarovski's flagship store and has seen French-style US luxury retailer Pierre Deux triple the size of its store on the Avenue. In addition, Graff, Breguet, Jean-Paul Gaultier, DiModolo and Gucci have arrived on Madison Avenue.
THE WORLD'S MOST EXPENSIVE SHOPPING STREETS Rank Rank County City Top location in each US$/sq 2002 2001 country ranked by m/ country per annum June 2002 1 1 US New York East 57th 7,535 Street/Fifth Avenue(A) 2 3 France Paris Avenue des 6,209 Champs-Elysees 3 2 Hong Kong Hong Kong Causeway Bay 5,382 4 5 UK London Oxford Street 4,676 5 4 Australia Sydney Pitt Street Mall 3,381 6 6 Russia Moscow Manezhnaya Square 3,000 7 10 Germany Munich Kaufingerstrasse 2,667 8 12 South Korea Seoul Myeongdong 2,612 9 8 Greece Athens Ermou 2,607 10 9 Japan Tokyo The Ginza 2,185 11 14 Ireland Dublin Grafton Street 2,165 12 11 Singapore Singapore Orchard Road 2,100 13 19 Norway Oslo Karl Johan Gate 1,866 14 18 Italy Milan Via Montenapoleone 1,837 15 15 Brazil Sao Paulo Iguatemi Shopping 1,800 16 17 Austria Vienna Karntnerstrasse 1,778 17 7 Switzerland Geneva/Zurich Rue de 1,680 Rhone/Bahnofstrasse 18 20 Netherlands Amsterdam Kalverstraat 1,620 19 21 Denmark Copenhagen Ostergade 1,602 20 22 Canada Toronto Bloor Street 1,580 21 13 China Beijing Wandujing 1,560 22 16 Malaysia Kuala Lumpur Suria KLCC 1,526 23 25 Spain Madrid Preciados 1,458 24 23 Finland Helsinki City Centre 1,363 25 31 Czech Prague Na Prikope 1,333 Republic 26 26 Belgium Brussels Rue Neuve 1,248 27 27 Portugal Lisbon Baixa 1,185 28 41 Kuwait Kuwait City CBD 1,117 29 24 Israel Tel Aviv Ayalon Shopping 1,100 Centre/Ramat Aviv 30 32 Sweden Stockholm Biblioteksgatan 1,089 31 37 Hungary Budapest Vaci Utca 1,030 32 28 Lebanon Beirut City Centre (BCD) 1,000 33 29 Poland Warsaw Ul. Nowy Swiat/ul. 960 Chmielna 34 35 Turkey Istanbul Bagdat Caddesi/Abdi 840 Ipekci (Asian side 35 40 Mexico Mexico City Mazaryk 780 36 N/a New Zealand Wellington Lambton Quay 730 37 39 Romania Bucharest Bulevarul 720 Magheru/Calea Victoriei 38= N/a Lithuania Vilnius Gediminas Avenue 660 38= 38 India Mumbai Linking Road, 660 Western Suburban 40 43 Thailand Bangkok City Centre 635 41 29 Argentina Buenos Aires Florida 480 42 42 South Africa Johannesburg Sandton City 472 43 N/a Estonia Tallinn Viru Street 438 44 N/a Latvia Riga Krasta 420 (A) In Main Streets Across the World 2002, East 57th Street and Fifth Avenue are in joint first place. In 2001, East 57th Street occupied the top position on its own.
On a worldwide basis, the location with the fastest rental growth between June 2001 and June 2002 is in central Kuwait City, with a rise of 180 per cent. This is due to the opening of the country's first western-standard malls for a number of years. Rents in the traditional retail areas have remained largely unchanged.
In the Americas, the biggest rise is Oscar Freire Jardins shopping centre in Sao Paulo, with rents rising 48 per cent; in Asia, Seoul's Kangam Station, 41 per cent; and in Europe, in the Portuguese city of Porto, Avenida de Boavista, 34 per cent. The biggest falls, of up to 75 per cent, are witnessed in Argentina, hit by continuing economic crisis.
After the Middle East and Africa region, Europe has shown the biggest regional increases in retail rents, with growth of around 3 per cent between June 2001 and June 2002, rising to 6 per cent for the Euroland countries.
David Hutchings, Cushman & Wakefield Healey & Baker's Head of European Research, comments: "A shortage of the right-sized retail units offering the right dimensions has been a real spur for pushing up rents in the more mature markets of Europe. This has been despite the economic slowdown which has reduced demand and alleviated some of the acute space pressures seen a year or two ago."
EUROPE: LOCATIONS SHOWING STRONGEST GROWTH Place Shopping Location % increase in rents 2001-2002 (B) 1 Porto - Avenida de Boavista 33.7 2 Barcelona - Portal de Angel 25.0 3 Bologna - Galleria Cavour 23.5 4 Prague - Na Prikope 22.2 5 Nice - Rue Jean Medecin 20.0 6 Moscow - Novy Arbat 17.7 7 Milan - Via della Spiga 17.4 8 Barcelona - Paseo de Gracia 17.2 9 Naples - Via Toledo 16.9 10 Barcelona - Diagonal 15.8 (B) Based on movements in local currency.
Notes to Editors:
Cushman & Wakefield Healey & Baker operates the European, Middle Eastern and African division of Cushman & Wakefield, the pre-eminent global real estate services provider, delivering a worldwide service through 155 offices in 51 countries. Founded in 1820, the Firm provides all types of commercial property advice and acts for a range of prominent clients across the corporate, public and private sectors.
SOURCE Cushman & Wakefield
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