A number of the locations, including New York, Hong Kong and London’s West End, have seen a double digit annual rental uplift. New York’s Fifth Avenue has the highest rent from the sample locations.
Top of the table is Fifth Avenue, New York at £1,494 per square feet, followed by Russel Street, Causeway Bay, Hong Kong, at £836 per square fees and Avenue des Champs Elysees in Paris at £799 per square feet.
Madison Avenue, New York, comes in next at £662 per square feet, then London’s West End at £335 to £600 per square feet, Bahnhofstrasse, Zurich, Switzerland at £590 per square feet.
The rest of the top ten comprises Ginza-Chuo Avenue, Tokyo at £388 per square feet, Graben, Kohlmarkt and Mariahilfer Strasse in Vienna at £336 per square feet and Rodeo Drive, Los Angeles at £288 per square feet.
The briefing paper concludes that the premier retail streets and destinations that continue to succeed are those that evolve and re-invent their mix, depth and quality of offer. For example, the Champs Élysées has in recent years been a finale post for the Tour de France and Vienna has become increasingly more fashionable as a congress city.
‘Despite the ongoing economic uncertainty, the global destinations that have been singled out by this briefing paper continue to attract millions of visitors. This is due to the rich variety, mix and scale of the retail, entertainment and cultural experiences, together with their unique and eclectic offer. These destinations remain competitive, compelling and have enduring appeal, thus showcasing the personality of each city,’ said Farrah Hassan-Hardwick, director, development solutions at Colliers International and author of the briefing paper.
According to Richard Dickinson, chief executive of New West End Company representing 600 businesses in Bond Street, Oxford Street and Regent Street in London the research provides a strong steer to understanding top retail and leisure destinations.
‘The West End encompasses the largest number of international brands and flagship stores with a rich mix of entertainment and cultural attractions. With West End sales up over 7% in 2010 and many of our stores performing stronger here than other sites around the world it is no wonder that demand to be located in London’s West End is at a record high,’ he explained.
Sarah Porter, chief executive, Heart of London Business Alliance, said it shows the number of factors that are intrinsic to the success of the world’s top destinations when it comes to the retail, entertainment and cultural experience for residents and visitors.
‘From our point of view, this validates the work that has been carried out and is currently being planned for London’s West End. Leicester Square is a shining example of how a world famous area is being transformed through a confident private and public sector investment plan, reinventing itself and its appeal as a 'must see' destination in its own right, she added.
