The most expensive shopping street in the world
24 Nov, 2008,
New York’s Fifth Avenue is the world’s most expensive shopping street in 2008. Na Příkopě, in Prague, the most expensive shopping destination in the Czech Republic, has dropped two places to twentieth in the annual Main Streets Across the World survey drawn up by the leading real estate consultants Cushman & Wakefield. The latest survey results were released at MAPIC, the prestigious real estate trade show, which ended on Friday in Cannes.
‘Retail unit rents along Prague’s Na Příkopě are as high as 2,160 euros per square metre per year, up by 120 euros on last year. This rate is mainly driven by the limited retail space in this locality,’ says Martin Žížala, head of the retail team at Cushman & Wakefield’s Prague office.
‘Na Příkopě is up there with Wenceslas Square as the city’s busiest shopping destination, which attracts fashionable brands geared towards a wide range of customers. Although rising rents show no signs of easing off in the city centre, which hosts over 180,000 m2 of retail space, finding a free unit is easier said than done. The attractiveness of the city centre as a shopping destination has been boosted by the opening of the Palladium last year and other projects in the pipeline for Na Příkopě and Wenceslas Square in the next few years, such as the Van Graff store or the redevelopment of the ČSOB building in Na Příkopě,’ says Jan Kotrbáček, head of city centre unit leases at Cushman & Wakefield.
In the past twelve months, shops such as Tezenis, Douglas and Coffee Heaven have sprung up in Na Příkopě and the surrounding streets. These corporations have set up showcase stores here to introduce their brand to the Czech market.
‘Although Na Příkopě and Wenceslas Square have the most expensive rents, the most prestigious luxury goods are sold by shops in Pařížská, a street where brands such as Gucci, Mont Blanc and Cartier have moved in. Demand for this prime retail space in Pařížská is also high, and rents are now almost on a par with those in Na Příkopě,’ explains Jan Kotrbáček.
The Main Streets Across the World survey compares retail rents in 44 countries worldwide. Each country is represented by the street with the highest rents. The chart is compiled by Cushman & Wakefield on the basis of supporting documents delivered by experts from individual countries, keeping track of 236 streets. Figures for the latest survey were collected in June 2008.
Tenants letting premises in the world’s most expensive shopping street – New York’s Fifth Avenue pay up to 17,044 euros per square metre per year for the pleasure, a 23% rise on last year.
The runner-up in the Main Streets Across the World survey is Causeway Bay in Hong Kong (12,161 euros/m2/year), followed by the Champs Elysées in Paris (7,732 euros/m2/year). The top five is rounded off by Via Montenapoleone in Milan (6,700 euros/m2/year) and Grafton Street in Dublin (5,621 euros/m2/year).
In Central Europe, Prague was the only city to make the top twenty. Budapest went down two places to thirtieth, w
"Bratislava's position in theMain Streets Across the World survey is also influenced by the very fact that the city center has for long been mostly occupied by gastronomic and café operators and other places for night life. Concerning this fact a lot of international, large scale retailers find the offer of suitable premises, both in terms of size and quality, very limited. The city center needs investors who would refurbish existing buildings or by creating a new development make up for this deficit; the latest trend suggest positive progress in this matter. Potential of one or more international brands moving into the city center could have a good influence on future potential of this location as a possible shopping destination, as is the case in majority of big cities and metropolises in the region", says Marián Fridrich, retail leasing consultant at Cushman & Wakefield in Slovakia.
Rents in downtown Bratislava are similar to those in the heart of Brno, where tenants can expect to pay 900 euros/m2/year in the prime locations of Česká ulice, Náměstí Svobody and Masarykova třída. International corporations continue to show a keen interest in Brno’s retail sites. Besides existing tenants, such as H&M, Zara, Mango and Benetton, other major players who are to open stores here this year include Tezenis, Cropp Town and Camaieu.
‘When international brands made their first forays into the Czech market, they focused just on Prague and Brno. Now they are eyeing up smaller towns, such as Liberec, České Budějovice, Pardubice, Ústí nad Labem, Olomouc,and Ostrava. Key factors motivating their choice are whether a town has a clearly defined, large enough shopping district and whether quality real estate is available for retail use,’ says C&W’s Jan Kotrbáček.
MAIN STREETS ACROSS THE WORLD
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