Fifth Avenue Remains World’s Top Retail Corridor
The commercial retail real estate market has seen brighter days, but for luxury retail corridors there’s still much for landlords to celebrate, particularly on New York City’s Fifth Avenue, reports National Real Estate Investor. The Big Apple’s top shopping thoroughfare has retained its rank as the most expensive retail street globally, according to a new report from Cushman & Wakefield, the global real estate services company.
Fifth Avenue tops world retail report
In its annual “Main Street Across the World” report, Fifth Avenue claimed three top honors; the most expensive retail real estate rents in the world, in North America, and in the United States, with average rents of $3,000 per square foot per year. The specific stretch of Fifth Avenue in question was limited to the blocks between 49th Street and 60th Street in the report.
New York rents exponentially more expensive
New York City’s Fifth Avenue gem was far and away the winner for costly retail rents for enviable retail locations. According to the article, the U.S. top ten started off more humbly across the country on Del Mar Heights Blvd., north of San Diego. While the rate of $105 per square foot per year was one of the highest in the country, it was a fraction of the asking rents on Fifth Avenue.
Next came Walnut St. in Philadelphia, Newbury St. in Boston, Worth Ave. in Palm Beach, Fla., and Penn Quarter in Washington, D.C. Retail rents for these shopping districts ranged from $125 to $205 per square foot per year.
Miami’s Lincoln Road was the second Florida listing in the U.S. top ten, the only state besides California with multiple appearances. Rents here were said to be $300 per square foot per year. Chicago’s Magnificent Mile, namely North Michigan Ave., claimed the fourth spot on the list with a yet-more pricey $550-per-square-foot-per-year retail asking rent.
Rodeo Drive a discount compared to Fifth Avenue
The report returned to California for the third- and second-most expensive retail corridors in the country, where Union Square in San Francisco spaces went for $700 per square foot per year on average, and Los Angeles’ Rodeo Drive commanded rents of $875 per square foot per year. Despite the cost of Los Angeles’ most expensive retail real estate, it still pales in comparison to Fifth Avenue. A New York retailer could move west and recognize a 71-percent discount on Rodeo Drive. Moving east would be more costly.Posted on: Thursday, November 30, 2017