Hong Kong Takes Crown From Manhattan for Sky-High Store Rents

(Bloomberg) -- The retail rout that has swept through the U.S. has now cost the upper part of Manhattan’s Fifth Avenue its status as the world’s most expensive street for store rents. Hong Kong’s Causeway Bay takes its crown.

Annual rents for the prime area of New York City have fallen by a quarter in the past year to $2,250 a square foot, on average, according to broker Cushman & Wakefield. This ends five years of double-digit increases that had made stores increasingly unaffordable for retailers battling the growth of e-commerce.

London’s New Bond Street, the Avenue des Champs-Elysees in Paris and a street in the heart of Milan’s fashion district round out the top five.

Fifth Avenue rents “were arguably too high,” said Darren Yates, head of EMEA research and insight at Cushman & Wakefield in London. “They’d been growing at around 10 percent a year for the previous five years, so needed a correction.”

Rank 2018Rank 2017LocationCityRent
12Causeway BayHong Kong$2,671
21Upper Fifth AvenueNew York$2,250
33New Bond StreetLondon$1,744
5Avenue des Champs-ElyseesParis$1,519
54Via MontenapoleoneMilan$1,466
77Pitt Street MallSydney$964

Note: Rent is annual average per square foot
Source: Cushman & Wakefield

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