New York’s Fifth Avenue remains at the top of the rankings of the world’s most expensive retail rental strip, despite a flat rental growth in the third quarter, according to Cushman & Wakefield.
Rent at the Upper 5th Avenue in New York amounts to $2000 per sqft per year, Cushman & Wakefield showed in its Main Streets Across the World 2023 report.
New York is the only US destination in the top 10 most expensive retail destinations in FY23.
The Americas posted the second-highest regional rental change of 5.2 per cent, next to Asia Pacific with a growth rate of 5.3 per cent.
“The retail sector has continued to face issues head-on while demonstrating its resiliency. The near-term outlook for the retail sector remains cautious, but at the same time is nuanced between sub-sectors and geographical locations,” said Barrie Scardina, Cushman & Wakefield’s Americas retail head.
“At the macro level, the focus is on the strength of consumer spending. As central banks have undertaken one of the most aggressive interest rate hiking cycles in decades, consumers have shifted spending patterns and are reigning in non-discretionary expenditure.”
Meanwhile, Milan’s Via Montenapoleone now ranks world’s second most expensive retail destination with a rental cost of $1766 per sqft per year, displacing Hong Kong’s Tsim Sha Tsui (main street shops), now ranking third with a rental cost of $1493 per sqft per year.
London’s New Bond Street ranked fourth at $1462 per sqft per year, while Paris’ Avenues des Champs-Élysées ranked fifth at $1120 per sqft.