London’s New Bond Street named ‘most expensive’ European high street

London’s New Bond Street has been named as the most expensive European shopping location for rental value and the third most globally.
The ‘Main Streets Across the World’ report by global real estate services firm Cushman & Wakefield tracks 446 of the top retail streets around the globe, ranking the most expensive in 65 countries by prime rental value utilising proprietary data.

Rents for the London high street sit at $1,744 (£1,343) per square foot year-on-year (psf/yr), and the group said luxury and high-end retailers still see the UK’s capital as a “key retail destination”.

Causeway Bay in Hong Kong was crowned the most expensive location in the world with rents of $2,671 (£2,059) psf/yr, replacing New York’s Upper 5th Avenue, and is the sixth time it has held the position.

Report author Darren Yates, head of EMEA retail research, said: “There is still a significant appetite for premium retail sites globally, with the top retailers using stores as part of their customer experience strategy.

“While global trends are not completely uniform, there are some common themes. The most notable include the continued growth of online, omni-channel retailing as standard and significant investment in store design. While technology is still a major disruptor in retailing, it is also enabling physical retail to fight back as it allows retailers to better understand their customers and to enhance the in-store experience.”

Justin Taylor, head of EMEA Retail, added: “There is still a healthy future for the sector but we are moving to a ‘beyond retail’ phase driven by societal and technological change meaning business models will also need to adapt.

“Traditional retail will survive and in many locations prosper, but it will likely form a smaller part of the overall occupier mix. Even in these most expensive high street locations, we are likely to see a mix of uses such as restaurants, leisure, fitness and services.”