Sydney’s Pitt Street has made the top 10 list of the most expensive retail streets in the world.
The list appears in Cushman & Wakefield’s latest “Main Streets Across the World 2017” report.
The report examined 451 streets worldwide, gauging the cost of retail streets based on rent per square foot in American dollars, and per square metre in Euros.
New York’s 5th Avenue took out the top spot 28,262 euros (AUD$44,084) per square metre a year, followed by Hong Kong’s Causeway Bay, London’s New Bond Street, Milan’s Via Montenapoleone, Paris’ Avenue des Champs Elysees, and Tokyo’s Ginza.
Sydney’s Pitt Street came in at seventh with a cost of 9,422 euros (AUD$ 14,696) per square metre a year.
Food and beverage operations remain a key driver of demand in the Asia Pacific region; but health & beauty, fashion, sports and lifestyle brands, are equally prominent according to Cushman & Wakefield.
Looking at Australia, the report notes that activity in the Australian retail market has been limited by low levels of availability. But with new developments and lease expiries coming up, there are increasing opportunities for landlords to secure high-quality tenants.
Brick and mortar retail is also feeling the pinch of the rise in online shopping. One emerging trend is for domestic retailers to move to suburban shopping centres, which frees up space for major international brands to move into CBD locations.
Source: Cushman & Wakefield