RENTS in London’s New Bond Street have surged by more than 15 per cent over the past year as the location climbed from sixth to the world’s fourth most expensive shopping thoroughfare for retailers.
Retailers on Britain’s prized shopping street paid an average rent of $1,047 (£657) per square foot over the last twelve months, a 15.6 per cent rise on the previous year, according to research released today by property advisers Cushman & Wakefield.
The home of Louis Vuitton, Cartier and Hermes leapfrogged Toyko’s Ginza to become the fourth most expensive location in the world for retailers per square foot.
It also enjoyed the second fastest growth in terms of rental value behind the Avenue des Champs-Elysees in Paris, where rents grew by a staggering 38.5 per cent.
France has seen a resurgence in retail demand driven by overseas players looking to gain a foothold in Europe, with more than 100 luxury stores – including new shops and refurbishments – opened in the country since 2011.
Hong Kong’s Causeway Bay remains the world’s most expense shopping spot for the second year running and broke through the $3,000 per sq ft barrier for the first time in the survey’s 25-year history.
New York’s Fifth Avenue, which lost the top stop to Causeway Bay two years ago, and Avenue des Champs-Elysees held onto second and third place respectively.
“Economic risks remain for 2014 but conditions are expected to steadily improve across most markets,” Cushman & Wakefield senior analyst Martin Mahmuti said.
“The retailers’ push towards the best and most sought-after locations will continue; however, limited supply and higher rental costs will create obstacles for some brands, leading a number to look to alternative locations in close proximity to the main thoroughfares,” he added.