• New York’s Upper Fifth Avenue – where rents reached a record EUR 29,822 per sq m per year – is the world’s costliest retail destination, with Hong Kong’s Causeway Bay seeing a 6.8% fall in rents and edging down into second spot
• Top rents in Prague are stable at EUR 2200 per sq m in the Na Příkopě street and EUR 840 per sq m in Brno
New York’s Upper Fifth Avenue has overtaken Hong Kong’s Causeway Bay (EUR 23,307 sq m/year) as the world’s most expensive shopping destination, according to global real estate adviser Cushman & Wakefield’s flagship retail research report Main Streets Across the World, published recently.
The report is widely recognised as the barometer for the global retail market and ranks the most expensive locations in the top 330 shopping destinations across 65 countries. Cushman & Wakefield analyses the evolution of the industry and global retail trends to ensure its clients are best positioned. Despite seeing no change to rental values after a 40% rise last year, Champs-Élysées in Paris retained its third place (EUR 13,255 sq m/year), which was followed by London’s New Bond Street in fourth where rents rose by 4.2%. Pitt Street Mall in Sydney completed the top five.
“Prague’s Na Prikope Street ranked 27th in the study this year as rents exhibit a slight growth trend while the demand on the part of retailers remains huge,” says Jan Voslář, Head of Cushman & Wakefield’s High Street Team in Prague.
“Prices are rising in Parizska Street as well. Its most attractive part has virtually reached the level of Na Prikope price-wise. Retailers pay rents as high as EUR 2,200 per square metre at Na Prikope,” Mr. Voslar adds.
“Prague has a completely unique position in Central Europe and it is obvious that more retailers will want to be present here. They are trying to demonstrate their strength and showcase their brand concepts with the size and design of their stores. The city centre atmosphere is irreplaceable and incomparable with shopping centres,” says Jan Kotrbáček, Head of Cushman & Wakefield’s Retail Team.
“We expect rents to grow in the future,” Mr. Kotrbacek says.
„Unlike Prague, Bratislava can not boast luxury retail high streets that could potentially rival for example, Eurovea shopping mall which is located in the city cente. Eurovea does offer a mixture of premium brands and together with nearby local amenites provides an attractive environment for both shopping and cultural activities,“ says Matúš Furman, Head of Retail Department at Cushman & Wakefield in Slovakia.
„Obchodna Street is a busy street with established brands that cater to the masses and to that extent does not offer the same retailer choice as Eurovea. The current weaker purchasing power and economic climate are having a direct impact on the market and the opportunities it can offer, and for that reason, the trend of lower quality retailers occupying units on Obchodna Street is set to continue. Its also worth noting that the market of luxury fashion is greatly influenced by the proximity of Vienna, where global brands have already established themselves,“ adds Matúš Furman.
The Czech Republic’s most expensive high street has been listed in the upper half of the ranking for a long time; it was 26th last year. The appeal and potential of Prague’s city centre is confirmed by the newly opened stores of brands such as Louis Vuitton, Tiffany, Jimmy Choo, Bershka, Michael Kors, Swarovski and many others.
The ranking of the most expensive retail locations in each country recorded notable movements this year. The arrival of brands such as Microsoft, which recently announced its first flagship store in New York’s Upper Fifth Avenue, further underlined the importance of these premier shopping destinations.
Despite the still uncertain economic situation in some parts of the world, retail market activity is expected to improve in the year ahead. The growth of online shopping, supporting the polarisation in the market in favour of the biggest and the best, will increasingly drive retailer expansion strategies whilst also having a structural impact on local markets.