New York’s Fifth Avenue, the world’s most expensive shopping street

New York’s Fifth Avenue has reclaimed its position as the world’s most expensive shopping street with average annual rents of $2,000 per square foot.

The global ranking from global real estate services firm Cushman & Wakefield
CWK
reveals that the Hong Kong dollar’s peg to the US dollar has helped Hong Kong maintain a high-ranking second-place position in 2022.

Tsim Sha Tsui – at $1,436 per square foot per year – edged out Causeway Bay as the territory’s representative in the rankings.

In third place is Milan’s Via Montenapoleone, at US$1,380, Europe’s most expensive shopping street for the first time, topping New Bond Street in London and the Avenues des Champs Elysees in Paris.

Global Retail Ranking 2022

At the height of the Covid-19 pandemic, rents in the world’s top retail destinations fell by an average of 13%, but subsequently recovered to just 6% below pre-pandemic levels. Global rental growth averaged 2% last year but varied widely.

APAC was the hardest-hit region during the pandemic, with rents falling an average of 17%, mostly due to border closures affecting key international tourist destinations. In EMEA, rental declines averaged 11%, while the decline in the Americas was just 7%, partly due to supportive fiscal policies and domestic migration patterns that are boosting purchasing power.

Since the pandemic bottomed out, rents in global retail markets have recouped about 50% of their losses. Much of this improvement has come into 2021 and early 2022 before global economic headwinds have negatively impacted markets over the past six months.

Trends by global regions

Among the most expensive streets in the US, Los Angeles’ Rodeo Drive is the second highest at annual rent of $900 per square foot, followed by San Francisco’s Union Square, California, at $495.

The North American Top 10 comprises Las Vegas Boulevard, Las Vegas; North Michigan Avenue, Chicago; Newbury Street, Boston; Bloor Street; Toronto; Lincoln Rd, Miami; Worth Avenue, Palm Beach and South Congress (SoCo), Austin.

The strongest retail growth from before the Covid-19 crisis to date was River Oaks District, Houston (ranked 11th) at $200, up 122%.

Cushman & Wakefields main roads around the world First published in 1988, the report tracks the top shopping streets in 92 cities worldwide and ranks the most expensive by prime rental value.

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