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8 July 2019

The 10 most expensive retail strips in the world

If you're leasing retail space in Sydney's Pitt Street Mall, you probably already know you're managing property in Australia's most expensive (and busiest) retail strip, with your client's making an average of $13,900 per square metre per year. But did you know, you're also managing property that is among the most expensive retail space in the world?

TGC, the largest privately owned commercial real estate agency in the Sydney CBD and REINSW member agency, has reviewed the cost of retail space across the globe, and you'll be surprised at where Sydney ranks compared to the world's most exclusive and popular shopping destinations.

Kohlmarkt, Vienna ($7,535 AUD)

Coming in at tenth place is Kohlmarkt – Vienna, where you’ll find luxury brand stores like Dolce & Gabbana, Cartier and Tiffany & Co. Attracting a comfortable A$7,535 per sqm, the street was originally known as ‘Coal Market’ and is one of the oldest streets in the city.

Bahnhofstrasse, Zurich (AU$12,514)

Even if you weren’t to enter any of the stores, strolling down Bahnhofstrasse from end to end would take about 20 minutes. Luxury fashion brands like Giorgio Armani and Louis Vuitton can be found here, as well as a department store, perfumeries and watch shops, and some of the best Swiss delicacies. Retailers can expect to pay A$12,514 per sqm to set up shop here.

Myeong dong Seoul

Myeong-dong, Seoul (AU$13,087)

Known for the best shopping, street food and nightlife in Korea, Myeong-dong in Seoul attracts between one and two million shoppers every day! Along this bustling strip you’ll find a wide variety of tenants, from beauty stores such as Nature Republic and Olive Young to small boutique, and major department stores to street food carts.

Ginza, Japan (AU$17,577)

The Ginza is Tokyo’s most famous luxury shopping, dining and entertainment district and the most expensive place to rent in Japan. It’s a massive area that accommodates shopping centres, as well as boutique shops for leading global brands. It’s also home to the flagship stores of Japan’s best-known, high-end department stores.

Avenue des Champs Élysées, Paris ($21,896 AUD)

In fourth place, overtaking Via Montenapoleone – Milan this year, is Avenue des Champs Élysées in Paris. Often described as the “world’s most beautiful avenue,” international tourists flock to the area – and the retailers are only too willing to cater to them. From high-end, luxury brands to affordable labels and foodie delights, there really is something for everyone in this prestigious location. Attracting A$21,896 in rent per sqm, this historic avenue runs from Place de la Concorde to the famous Arc de Triomphe.

Upper Fifth Avenue, New York (AU$32,539)

Slipping to second place this year, the section between 49th and 60th streets attracts rents of A$32,539 per sqm. It’s where you’ll find luxury department stores/retailers like Saks, Van Cleef & Arpels, Tiffany & Co., Gucci and Louis Vuitton. It’s also just a short stroll away from iconic Times Square and Central Park. Reports show the reason this spot slipped to 2nd place is because of falling rents (down 25 per cent). This is largely due to the increased vacancy in the area.

Pitt Street Mall, Sydney (AU$13,900)

Situated in the heart of the Sydney CBD and spanning over two blocks, Pitt Street comes in at seventh place. Accommodating over 600 stores, including Tag Heuer, Gucci and Zara, Pitt Street is just a short stroll to Darling Harbour, Hyde Park and vibrant Chinatown. It’s also considered Australia’s busiest retail strip, attracting rents of A$13,900 per sqm.

Via Montenapoleone, Milan (AU$21,126)

Considered the most prestigious street in Milan, Via Montenapoleone gave its name to the entire district (known as Montenapoleone) and truly reflects Milan’s reputation as the ‘fashion capital’ of the world. Renowned for high-end fashion stores like Prada and Yves Saint Laurent, the street generates a whopping 25 per cent of the city’s international shopping turnover!

New Bond Street, London (AU$25,149)

New Bond Street held its third-place position this year. Situated in London’s West End, it remains the most expensive European location and is where you’ll find the likes of Cartier, Hermes, Chanel, Dior and Ralph Lauren. Retailers here can expect to pay A$25,149 per sqm.

Causeway Bay, Hong Kong (AU$38,506)

Recently overtaking Upper Fifth Avenue, New York, Causeway Bay’s Russel Street comes in at first place this year, costing a whopping AU$38,506 per sqm! Major international retailers view this area as the premier location to establish their presence in Asia. So, they’re willing to pay top dollar to secure a spot. This is the sixth time in 30 years the street has taken the number one spot.

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