Fifth Avenue Most Expensive Retail Location in the World
Other New York neighborhoods are also attracting high-end retailers.
New York’s Fifth Avenue retains its top ranking as the world’s most expensive retail destination, despite recording flat rental growth year-over-year, according to a new report by Cushman & Wakefield.
The firm recently released its 33rd edition of Main Streets Across the World, which reports on retail rental rates in prime locations in cities around the world.
The designation comes as little surprise to experts in the space.
“The street is populated by the wealthy – attracting many of the richest citizens and tourists from all over the world,” Lisa Christianson, President, Christianson & Company Commercial Real Estate Services/CORFAC International, tells GlobeSt.com.
“Top-named luxury brands locate on 5th Avenue as much for the exposure as the sales. The expensive real estate keeps out businesses that are not well-healed and a 5th Avenue address literally positions retailers in a class that sets them apart.”
Mark Sigal, CEO of Datex Property Solutions, tells GlobeSt.com that the strength and durability of New York’s Fifth Avenue is a product of multiple factors.
“From a brand recognition perspective, Fifth Avenue has global importance as a flagship location, especially for luxury-focused brands,” he said. “Add to this the fact that the luxury and ultra-luxury segments have maintained strength even in the face of a choppy economy, and the resilience of Fifth Avenue retail is unsurprising.
“Couple these dynamics with retail vacancies being at historic lows, and the beginnings of a rebound in the New York Office market — as the “return to office” trend accelerates — and we see a rising tide elevating Fifth Avenue faster than other high-end retail corridors. There is a reason when we talk retail, the axiom “location, location, location” is always top of mind.”
It bears noting that other New York neighborhoods are attracting high-end retail as well, albeit likely not at the same rents. Ariel Schuster, Newmark’s Vice Chairman focused on the retail market, tells GlobeSt.com that in the past week alone, the market there has welcomed two new significant store openings in buildings represented by Newmark. These include Cartier at 102 Greene Street in Soho, as well as Crate & Barrel at 881 Broadway in the heart of the Flatiron District.”
The C&W report also showed that Milan’s Via Montenapoleone jumped a spot into second, taking the spot of Hong Kong’s Tsim Sha Tsui, which slid to third in 2023.
New Bond Street in London and the Avenues des Champs-Élysées in Paris retained fourth and fifth positions, respectively.
The biggest mover was in Istanbul, where Istiklal Street moved from 31st to 20th position, as rampant inflation caused rents to more than double over the past year.