Cushman & Wakefield’s latest report, “33rd Main Streets Across the World,” reveals significant changes in global retail rental rates. Despite a stagnant year-over-year growth, New York’s Fifth Avenue remains the top spot for prime retail locations. However, Milan’s Via Montenapoleone has jumped to second place, surpassing Hong Kong’s Tsim Sha Tsui which now sits at third.
The report emphasizes the resilience of luxury retail sectors in major urban areas as they have been relatively unaffected by market-wide discount trends. According to Barrie Scardina, Head of Americas Retail at Cushman & Wakefield: “The retail sector has faced challenges head-on and continues to demonstrate its resiliency.” He also notes that while there is still caution surrounding the near-term outlook for this sector globally, recovery varies among sub-sectors and geographical locations.
Despite an average 4.8% increase in rental growth for prime retail destinations worldwide, many markets have yet to reach pre-pandemic levels with 60% remaining below them – particularly Europe (70%) and the United States (31%). This highlights varying stages of recovery across different regions.
This article was originally published on Connect CRE.
