A new report lists the most expensive high streets and shopping centres in the world, according to rental rates per square foot.
The 27th edition of Cushman & Wakefield’s report: Main Streets Across The World, tracks over 500 of the top retail streets according to their prime rental value.
“Our latest results show that rents have risen in 35% of streets around the world – despite the increased global uncertainty experienced over the last 12 months,” the report said.
New York’s 5th Avenue retained its position as the most expensive global retail location. By the second quarter of 2015, rents reached US$3,500/sq.ft/year, a year-on-year to June 2015 increase of 3.6%.
5th Avenue is ahead of Causeway Bay in Hong Kong, by some distance, with the Champs-Elysées in Paris, placed third.
In South Africa, Cape Town’s V&A Waterfront beats Sandton City in Joburg to the most expensive retail area.
“In South Africa retail rents in key cities, both along high streets and in shopping centres have been stable over the last twelve months to June 2015,” the report said.
The rising cost of utilities and fuel, coupled with the weakened rand are putting pressure on disposable income levels which, in turn, is impacting on retailers’ performance, it said.
“Those that stand to profit are brands that are positioning themselves in destination centres where footfall is supported by tourist numbers and those that are aligning their strategies and adopting a multi-channel approach in light of the growth of online shopping,” the report said.
South Africa’s richest retail areas
|1||V&A Waterfront||Cape Town||$110.2/sq – R1,552
|2||Sandton City||Johannesburg||$91.8/sq – R1,292
|3||Menlyn Park||Pretoria||$73.5/sq – R1,035
|4||The Pavillion||Durban||$41.3/sq – R579
|5||Claremont||Cape Town||$32.1/sq – R450
|6||St. Georges Mall||Cape Town||$27.6/sq – R387
|7||Durban Road||Belleville||$23.0/sq – R323
|8||West Street||Durban||$23.0/sq – R323
According to the United Nations, 54% of the world’s population resided in urban areas in 2014, which is up from 30% in 1950 and likely to increase further to 66% by 2050.
Top 10 richest retail streets in the world
|1||Fifth Avenue||New York||$3,500/sq|
|2||Causeway Bay||Hong Kong||$2,399/sq|
|3||Avenue des Champs Élysées||Paris||$1,372/sq|
|4||New Bond Street||London||$1,321/sq|
|10||Kaufinger / Neuhauser||Munich||$459.6/sq|