For the first time in 34 years, Cushman & Wakefield’s annual commercial real estate study has named a European high street the most expensive shopping street in the world. The 2024 edition reveals that Milan’s Via Montenapoleone has overtaken New York’s Fifth Avenue, which had held the top spot for decades. Over the past two years, commercial rent on Via Montenapoleone has surged by nearly 30%. The report attributes this growth to high demand from retailers and the euro’s strength against the US dollar.
The average rent on Via Montenapoleone now stands at €20,000 per square meter per year, marking an 11% increase compared to last year. Fifth Avenue, ranked second, saw little change in rent prices. Meanwhile, London’s New Bond Street climbed to third place, surpassing Hong Kong’s Tsim Sha Tsui, with rents rising by 13%. Paris’s Champs-Élysées holds the fifth position, with rents up by 10% since 2023.
Nearly all the top 10 streets in the study experienced significant rent increases. On average, rent prices across the 138 high streets surveyed grew by 4.4% year-over-year.
Robert Travers, EMEA retail manager at Cushman & Wakefield, explained that both luxury and mass-market brands are eager to secure locations on these prime streets. “Retailers are willing to pay high rents to secure and retain these spaces, keeping vacancy rates low,” he said.
In Europe, the rental market is thriving, with rents up 3.5% in the past year. This growth is fueled by a steady influx of tourists, bolstered by events like the upcoming Paris Olympics. France’s commercial streets are performing well, with three others joining the Champs-Élysées in the top 10. Rue Saint-Honoré is ranked fifth in Europe, with stable rental costs of €9,942 per square meter. Avenue Montaigne and Rue du Faubourg Saint-Honoré also remain stable, ranked seventh and eighth, respectively. Rental costs on La Croisette in Cannes, ranked 15th, increased by 7%.
Looking ahead to the remainder of 2024 and into 2025, the study predicts the retail sector will continue to benefit from strong economic prospects, which should boost consumer confidence and spending.
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