The world's highest rents for shops are being paid by Shops along New York's Upper 5th Avenue, says a report from one global real estate firm.
According to Cushman & Wakefield's report that is titled "Main Streets Across The World", companies ad brands like Cartier, Abercrombie & Fitch and Apple are footing rental costs of $3,000 per square feet annually as they have set up flagship stores dotting the 5th avenue stretch between 49th to 60th Street.
The annual report ranked the most expensive locations in each country by their prime rental value after the experts analyzed 462 top shopping streets in various countries all across the world.
According to Cushman & Wakefield's findings despite a drop in rents in the past 12 months, after New York, Hong Kong had the second most expensive shopping location in the world.
In Hong Kong, retailers in Causeway Bay are forking out $2,878 per square foot in rents annually even though they are already hurting from a slowdown in Chinese tourist traffic and spend.
And the costliest retail space in the EMEA region, with an average annual rent of $1,368 per square foot was Paris' Avenue des Champs Elysees which was the third most expensive location globally for retailers. The report said that as seen from the presence of new retailers like Skagen and fast-food chain Five Guys, the demand for retail space on the famous French boulevard has remained resilient.
The Cushman & Wakefield report further said that as footfall figures remained healthy and retailers were willing to pay a premium to secure the sites, New Bond Street in London had the fourth highest rents globally at $1,321/square foot. But according to the findings in the report, an increase in retail sales in Central London from overseas tourists have resulted due to the sterling devaluation that is linked to Brexit.
While Raj Bhavan/Somajiguda in Hyderabad, India was the most affordable in the Asia Pacific region at $16/square feet, the most affordable retail locations in EMEA was in Kaunas, Lithuania, which costs $17.96 per square feet annually, the global ranking report also found. And at $30.80 per square feet, the most inexpensive in terms of rentals costs in North America were found in Ottawa's Wellington Street, Canada.
The report noted that while large and small retailers were seen adapting to consumers' demands for multi-channel shopping, they have also been seen taking a more cautious approach when it comes to real estate decisions primarily due to the current retail environment which is immensely competitive.
"Retailers are facing technological advances head on, with more and more brands opting to offer online sales alongside a physical presence, and not instead of," Justin Taylor, EMEA head of retail, at Cushman & Wakefield, said in the report.
"Demand is strong but for the right space in the right location," he added
(Source:www.cnbc.com)
According to Cushman & Wakefield's report that is titled "Main Streets Across The World", companies ad brands like Cartier, Abercrombie & Fitch and Apple are footing rental costs of $3,000 per square feet annually as they have set up flagship stores dotting the 5th avenue stretch between 49th to 60th Street.
The annual report ranked the most expensive locations in each country by their prime rental value after the experts analyzed 462 top shopping streets in various countries all across the world.
According to Cushman & Wakefield's findings despite a drop in rents in the past 12 months, after New York, Hong Kong had the second most expensive shopping location in the world.
In Hong Kong, retailers in Causeway Bay are forking out $2,878 per square foot in rents annually even though they are already hurting from a slowdown in Chinese tourist traffic and spend.
And the costliest retail space in the EMEA region, with an average annual rent of $1,368 per square foot was Paris' Avenue des Champs Elysees which was the third most expensive location globally for retailers. The report said that as seen from the presence of new retailers like Skagen and fast-food chain Five Guys, the demand for retail space on the famous French boulevard has remained resilient.
The Cushman & Wakefield report further said that as footfall figures remained healthy and retailers were willing to pay a premium to secure the sites, New Bond Street in London had the fourth highest rents globally at $1,321/square foot. But according to the findings in the report, an increase in retail sales in Central London from overseas tourists have resulted due to the sterling devaluation that is linked to Brexit.
While Raj Bhavan/Somajiguda in Hyderabad, India was the most affordable in the Asia Pacific region at $16/square feet, the most affordable retail locations in EMEA was in Kaunas, Lithuania, which costs $17.96 per square feet annually, the global ranking report also found. And at $30.80 per square feet, the most inexpensive in terms of rentals costs in North America were found in Ottawa's Wellington Street, Canada.
The report noted that while large and small retailers were seen adapting to consumers' demands for multi-channel shopping, they have also been seen taking a more cautious approach when it comes to real estate decisions primarily due to the current retail environment which is immensely competitive.
"Retailers are facing technological advances head on, with more and more brands opting to offer online sales alongside a physical presence, and not instead of," Justin Taylor, EMEA head of retail, at Cushman & Wakefield, said in the report.
"Demand is strong but for the right space in the right location," he added
(Source:www.cnbc.com)
