Fifth Avenue in New York City remains the world’s most expensive shopping street for the third consecutive year. It is ahead of Causeway Bay, on Hong Kong Island, and the Champs-Élysées in Paris.
The famous New York street had taken first place from its Hong Kong rival, after two years of supremacy of the Asian artery.
The two districts remain well ahead of their competitors, with average rents of $33,000 per square metre for New York and $31,000 per square metre for Hong Kong.
[1]Rental values are twice as high as those of other major streets elsewhere in the world.
Zurich’s Bahnhofstrasse ranks ninth. The average annual rent is declining to $9,500 per square metre.
The Zurich artery was ranked seventh.
A drop in rents
New York and Hong Kong recorded a decline. The major international brands are streamlining their store fleets in favour of their online sales sites.
[2]The average amount of its commercial rents has thus fallen by 14%.
This is the first time since the end of the financial crisis that the New York artery has seen such a decline.
Brands and distributors listed on Wall Street are being pushed by the markets into a race for profit, which is prompting them to close their less profitable stores; a trend that affects most major American shopping streets.
In addition, New York is experiencing a period of lower demand from retailers for flagship stores, the flagship stores with the largest floor space and rents.
[3]A new online competition
In Hong Kong, it is also competition from online commerce, particularly developed in China, which is leading retailers and brands to reduce their commercial strategies.
Rents on Causeway Bay are down 15% this year, following a 12% decline last year.
The Champs-Élysées de Paris remains the third largest city in the world and the largest in Europe, with average rents of $14,700 per m2.