Cushman & Wakefield has released a report on the most expensive retail locations around the world. According to the report, the five streets with the highest rental prices are Fifth Avenue (New York, USA), Via Montenapoleone (Milan, Italy), Tsim Sha Tsui (Hong Kong, China), New Bond (London, England), and Avenues des Champs-Élysées (Paris, France).
Dong Khoi Street in Vietnam ranks 13th on the list and has the most expensive rental price in the country, with a retail rental price of about 390 USD/square foot/year (equivalent to 0.092m2), a 17% increase from last year. Trang Tien Street follows with the second most expensive retail space rental price in Vietnam at about 334 USD/square feet/year, which increased by 20% over the same period last year.
The report focuses on average rents at retail locations in the most prestigious urban areas worldwide, many of which are luxury goods stores. The rental value of retail space in this special segment is sometimes influenced by promotional negotiations, incentive packages, or risk-sharing leasing models.
Dominic Brown, director of international market research in Asia-Pacific of Cushman & Wakefield and author of the report, commented that the recent increase in retail space rental prices shows the recovery momentum of the retail industry in the near future. Despite a new wave of challenges from interest rate increases by central banks around the world to curb the current inflation cycle, retail sales continue to recover, he emphasized.
The World Retail Avenue report predicts a 4.8% increase in global retail space rental prices in 2023 compared to the previous year.