New York’s Fifth Avenue Coronation is the world’s largest shopping street ( News New York )

New York’s Fifth Avenue has regained its status as the world’s most expensive street, with average rents of 1,756 euro/sq. m/lmonth according to a new global order from real estate services firm Cushman & Wakefield.

Pegging the Hong Kong dollar to the US dollar helped Hong Kong to place the highest ranking in 2012 in second place, with Tsim Sha Tsui at €1,261/sq. m/month of ramparts Bay tearing apart as a representative territory in nothing.

Third, Via Milan in Montenapoleone €1,212 sq. m/month Europe’s most expensive street market for the first time, rising above New Bond Street in London and Avenue des Champs élysées in Paris.

Cushman & Wakefield’s flagship ‘streets across the world report’, first launched in 1988, researches the top streets across 92 states and ranks them as the most expensive by first rental value, using Cushman & Wakefield’s proprietary data. An annual report up to 2019, this is the first of its kind – allowing insight into comparative performance pre- and post-pandemic.

Robert Travers, Head of Emea Retail at Cushman & Wakefield, said:

The industry has been through one of the most challenging times imaginable in recent years, but the best-in-class real estate industry has remained robust. While we now face new economic challenges, the conversation has shifted from pessimism to the evolution of omnichannel retailing.”

With flat rent in Calea Victoriei, in the main street of the city, €53/sq. m/month, Bucharest remains in the top 50 developed cities worldwide and in position 46 out of 53 in the MEA ranking, just after Warsaw. Prague, Budapest, Zagreb and Belgrade rents are above the level in Bucharest, cheaper in Sofia, Bratislava, Vilna, Riga or Skopja.

Dana Radoveneanu, Head of Mode Agency, Cushman & Wakefield Equinox:

“Cushman & Wakefield’s global report analyzes high street retail dominated by luxury brands, a retail segment that managed to recover quickly after the complicated initial stages of the covid-19 pandemic and subsequent restrictions. This positive trend can also be observed in the events in which luxury retailers are present in Romania, such as Louis Vuitton or Rolex. Unfortunately, Calea Victoriei, the only Romanian commercial street included in the report, probably has the smallest fashion component in its tenant mix compared to other developed European locations. However, Calea Victoriei has become an increasingly popular destination, mainly because the depth of the restaurant, the variety of cafes or bars, we believe that we will also be the evolution of the segment shape in the future.

Incomes for the first global retail destination declined by 13% on average at the peak of the Covid-19 pandemic, but have since rebounded to 6% below pre-pandemic levels. Global rental growth averaged 2% over the year but varied significantly.

The APAC region was most impacted during the pandemic period with revenues falling 17% on average, mainly due to border closures that primarily affect international city destinations. In MEA, rental declines averaged 11%, while the trend in the Americas was just 7%, thanks in part to fiscal support policies and domestic migration patterns boosting purchasing power.

Since the pandemic’s nadir, global retail income has recovered about 50% of its losses. Much of that improvement occurred through 2021 and into early 2022 before global financial markets began to negatively impact markets for six months.

At the peak of Covid-19, incomes in MEA fell by an average of 11% although it varied greatly depending on the severity of the rolling lockdown. Ireland, the UK, Spain and France experienced significant changes as income fell by up to 28% on average. Meanwhile, there were minimal changes in parts of Eastern Europe such as Slovakia and Slovenia.

Primary incomes have rebounded in the region to only 8% below pre-pandemic levels and at the beginning of 2022 in the EU region recorded retail sales volumes 4.1% higher relative to the levels when Covid-19 first emerged. But the recovery has and will continue to challenge inflation, impacting consumer demand and retailers alike.

Despite Cushman & Wakefield’s challenging financial near term, they have seen a wave of newcomers enter the market, looking for physical retail. In the last 18 months, 75% of Cushman & Wakefield’s retail business represented in MEA was new deals, highlighting the value retailers place on their physical presence.


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