Even the most coveted retail spots in the world are not immune to a drop in rent prices.
According to New York-based Cushman & Wakefield’s “Main Streets Across the World” report, 54 percent of the 274 streets monitored by the real estate firm have seen prime rents take a dip, while 18 percent have seen premier asking rents rise.
Of the 10 most expensive shopping streets in the world — which include Causeway Bay in Hong Kong and Via Montenapoleone in Milan — most have seen rents fall or stay flat. Even Fifth Avenue in New York, which tops the list as the world’s most expensive street for the eighth year in a row, expects tenants to pay $1,700 per square foot, an 8 percent drop from the prior year.
“Notwithstanding the significant impact the downturn in the global economy has had upon the retail sector, the Manhattan marketplace, and specifically Fifth Avenue, have fared well as compared to the overall retail marketplace,” Cushman & Wakefield EVP Gene Spiegelman said in a statement.
The biggest rent drops globally occurred for Colaba Causeway in Mumbai, India, which saw a nearly 64 percent drop this year; and Sao Conrado Fashion Mall in Rio de Janeiro, which fell 53 percent. The Calea Victoriei shopping area in Bucharest, Romania, dropped 48 percent, the report showed.
But a few premier retail areas did see increases, included Alameda Lorena in Sao Paulo, where rents vaulted 111 percent; and Munich, Germany’s Kaufingerstrasse, which reported a 7 percent boost in rents. In France, tenants looking for commercial space on the Rue St. Catherine in Bordeaux can expect a rent hike of 18 percent.