Paris’ Avenue des Champs Élysées still commands the most expensive retail rents in Europe, despite significant rises on London's New Bond Street, according to Cushman & Wakefield's Main Streets Across the World report 2016.
'Retailers are facing technological advances head on, with more and more brands opting to offer online sales alongside, not instead of, a physical presence,' commented Justin Taylor, Cushman & Wakefield’s head of retail, EMEA.
The annual report, which tracks 462 of the globe's top retail streets, ranks New York's Upper 5th Avenue first in the world for pricey prime rents, standing at $3,000 per ft2 per year.
While Hong Kong's Causeway Bay is a close second, at $2,878 per ft2, Europe's prime retail rents come in at less than half, with Paris' Champs Élysées ranked third at $1,368 per ft2 and London's New Bond Street costing €1,283 per ft2.
Last year's fifth-placed Milan slips to sixth spot at €1,239, with Japans' Ginza climbing three places into the top five.
Paris retains crown
The report notes that Paris’ Avenue de Champs Élysées has retained its crown despite a decline in tourist numbers and spend. The French capital is home to five of the top most expensive high streets within the EMEA region.
Rent rises in the UK have been particularly focused in London, with New Bond Street seeing rents rise by 14.3% over the last 12 months, although Covent Garden and Sloane Street both exceeded this rising 31.6% and 27.3% respectively.
'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,' noted Taylor.
Milan’s Via Montenapoleone recorded 20% growth over the year to June, solidifying its third position in the EMEA ranking.
