New York’s Fifth Avenue World’s Most Expensive Shopping Street

New York’s Fifth Avenue has reclaimed its position as the world’s most expensive retail street, with average annual rents of $2,000 per sq ft.

The global ranking from global real estate services firm Cushman & WakefieldCWK
revelae that pegging the Hong Kong dollar to the U.S. dollar has helped Hong Kong maintain a high-ranking position in 2022 in second place.

Tsim Sha Tsui – at $1,436 per sq ft per year – displaced Causeway Bay as the territory’s representative in the rankings.

In third, Milan’s Via Montenapoleone at $1,380 is Europe’s most expensive shopping street for the first time, climbing above New Bond Street in London and Avenues des Champs Elysees in Paris.

Global Retail Ranking 2022

Rents across global prime retail destinations declined by 13% on average at the peak of the Covid-19 pandemic but have subsequently rebounded to just 6% below pre-pandemic levels. Global rental growth over the past year averaged 2% but has varied tremendously.

APAC was the most impacted region during the pandemic period, with rents falling 17% on average, mainly due to border closures affecting prime international tourist destinations. In EMEA, rental declines averaged 11%, while the decline in the Americas was just 7%, thanks in part to supportive fiscal policies and domestic migration patterns boosting buying power.

Since the pandemic nadir, global retail market rents have recouped approximately 50% of their losses. Much of that improvement has occurred through 2021 and into early 2022 before global economic headwinds started to negatively impact markets over the past six months.

Trends By Global Region

Among the most expensive streets in the U.S., Rodeo Drive In Los Angeles is the second highest with an annual rent of $900 per sq ft, followed by fellow Californian destination Union Square, San Francisco, at $495.

Making up the North American top 10 are Las Vegas Boulevard, Las Vegas; North Michigan Avenue, Chicago; Newbury Street, Boston; Bloor Street; Toronto; Lincoln Road, Miami; Worth Avenue, Palm Beach and South Congress (SoCo), Austin.

The strongest retail growth from pre-covid to present was River Oaks District, Houston (ranked 11th) at $200, representing a 122% increase.

Cushman & Wakefield’s Main Streets Across the World report, first launched in 1988, tracks the top retail streets across 92 cities globally and ranks the most expensive by prime rental value.