Fifth Ave. Leads the World, Paris Leads Europe in Retail Rents

LONDON-Fifth Avenue in New York is the world’s most expensive shopping street, according to new research by Cushman & Wakefield, Healey & Baker. The data tracks how much retailers are willing to pay for space on the world’s most prestigious shopping streets.

Retailers on Fifth Avenue now pay on average euro 8,406 per sm ($10,226 per sm) of selling space, an increase of 12% over last year. The exorbitant prices exclude service charges, local taxes and fit-out costs. Retailers who have expanded or opened new stores on Fifth Avenue so far in 2004 include Louis Vuitton, Pucci and Bottega Veneta. A De Beers flagship store is due to open soon.

“This specific stretch of Fifth Avenue has only around 55 stores in total,” says Gene Spiegelman, senior director of retail services in C&W’s Manhattan headquarters. “The demand for retail positions here is huge; leading brands covet this location.”

In Europe, the Champs Elysées in Paris tops the rankings with retailers there now paying euro 6,287 per sm ($7,648 per sm). But it is Bond Street in London that has gained the most in terms of recognition as one of Europe’s most prestigious luxury retail destination. It has gone from sixth in the European ranking to three, overtaking the Rue de Faubourg St Honore in Paris and London’s Brompton Road (home of Harrods) and Covent Garden. Prime rents on Bond Street now stand at euro 4,493 ($5,466) per sm, up nearly 18% on last year.

Retailers who have expanded or located on Bond Street so far in 2004 include Asprey, with its new European flagship, MaxMara and D&G. Bulgari has also just signed for a major new store. Retailers already on Bond Street include Alexander McQueen, Armani, Bulgari, Burberry, Cartier, Chanel, Versace and Yves Saint Laurent.

Chris Phillips, head of London retail for C&W/H&B, says, “Bond Street’s headline rents are certainly high but justified by the quality of customer. It’s vital also to recognize the prestige value of a store on Bond Street–this boost to brand image can’t be quantified.”