Rental prices in the world's two most expensive shopping streets have dropped due to the growth of online shopping, leaving retail chains and real estate agents in a real pickle on how to deal with this new reality.
Rental prices for both Upper Fifth Avenue (New York) and Causeway Bay (Hong Kong) have dropped compared to last year. Upper Fifth Avenue also has to deal with vacant lots on top of this rental price drop, which is the first since the financial crisis. According to Cushman & Wakefield, the surge in online sales is the main culprit, because brands now need to find a new balance between their offline and online presence. Despite the drop, both streets are still more than twice as expensive than the closest competitors.
Asia is the best performer in the top 10 of most expensive shopping streets across the globe. Tokyo's Ginza surges from eighth to fifth spot, while Myeongdong (in Seoul, South Korea) rises from ninth to eighth. Only three out of the top ten managed to increase their rental prices over the past year.
Antwerp has growth potential
The first European street (the Champs Elysées in Paris) is ranked third, while London, Milan, Zurich and Vienna also feature in the top 10. Antwerp and Brussels are still in the top 30, but Cushman & Wakefield feels Antwerp has more growth potential.
In its very own report, JLL said the shopping streets in the Benelux still have plenty of growth potential and that their central positioning could play an important part in international brands' expansion plans.