With rents averaging $1,283 per sq ft per year, London’s New Bond Street is the world’s fourth most expensive street to set up shop.
According to new research by property group Cushman & Wakefield, the street that runs through the heart of Mayfair and houses stores for brands such as Chanel, Burberry and Louis Vuitton, is commanding ever increasing rents from retailers due to strong demand for its limited available units.
In fact strong “occupier demand” was particularly evident in London the report said: “[London] saw some of the strongest rental growth across EMEA with retailers willing to pay a premium in order to secure sites and capitalise on healthy footfall figures. London’s New Bond Street – second most expensive street in EMEA – saw rents rise by 14.3% over the last 12 months, although this was outstripped by Covent Garden at 31.6%over the same period, followed by Sloane Street (27.3%).”
The list of the most expensive streets was topped by New York’s Upper Fifth Avenue, which while it had seen its first decrease in rents since the financial crisis of 2008, is still commanding $3,000 per sq ft. Hong Kong’s Causeway Bay is just marginally cheaper, and second on the list overall, at $2,878 per sq ft.
Europe’s most expensive street, and third on the list overall, is the Champs Elysées in Paris, which commands a rent of $1,368 per sq ft. Other European streets to feature are Milan’s Via Montenapoleone ($1,239 and sixth on the list), Zurich’s Bahnhofstrasse ($868 and ninth on the list) and Vienna’s Kohlmarkt ($477 and tenth on the list).
Justin Taylor, Cushman & Wakefield’s, Head of Retail, EMEA, that online sales had not reduced retailers’ appetites for stores in the right location. “Retailers are facing technological advances head on, with more and more brands opting to offer online sales alongside, not instead of, a physical presence. They are also raising the customer experience bar with leading examples including Primark’s new store in Madrid and Apple’s refitted store on Regent Street in London,” Taylor said.
“Demand is strong for the right space in the right location and the lack of supply along the majority of Europe’s main thoroughfares is seeing rents rise further and expanding the boundaries of well-established streets. This is exemplified by growth seen in some of London’s premier streets including Bond Street and Oxford Street,” he added.