London’s New Bond Street one of world’s 10 most expensive streets: Will Oxford Street catch up?
New Bond Street has once again been named as London's most expensive street with its luxury retailers paying some of the highest rents in the capital – though it has got some competition coming from Oxford Street.
The upmarket shopping street, which is home to the likes of Burberry and Louis Vuitton, saw prime retail rents rise by 4.2 per cent to a record $1,216 per square foot a year, according to commercial real estate agents Cushman & Wakefield.
However, nearby Oxford Street appears to be catching up, and it saw a larger increase in terms of prime retail rents by 5.8 per cent to $803 per square foot a year.
This is largely down to the impact the Crossrail development is having on the street, particularly the east end towards Tottenham Court Road, which has seen the likes of Primark and Zara among others take units. And where those fashion favourites lead, others are sure to follow (at least that is what the developers hope).
According to the report:
The luxury retail market in central London, UK, went from strength to strength, with demand again far outstripping current availability.
Many retailers with established business in London are now keen to expand their representation by opening additional stores in the capital and/or increasing the size of their main flagship by taking space in upper level, which is more cost effective than moving location.
Other UK locations that fared particuarly well were Queen Street in Cardiff and Market Street in Manchester. Here, prime retail rents rose by 8.1 per cent and 2 per cent respectively. Nonetheless, they still trailed behind the figures seen in London.
New York's Upper Fifth Avenue, where shoppers can flock to Gucci and Prada, was the world's most expensive street in terms of prime retail rents. They rose by 13.3 per cent to $3,500 per square foot a year, helping it overtake Hong Kong's Causeway Bay which slipped to second place.
America posted the strongest regional growth, with prime rents increasing by 5.8 per cent to $317 per square foot a year. The report said:
Positive economic news, combined with healthy retailer fundamentals, continued to filter through into the U.S. retail market.