Pitt Street Mall in Sydney is among the most expensive places for shop owners to rent retail estate, a new study by US property consultant Cushman & Wakefield has revealed.
A square metre of space in the popular shopping area will cost retailers around US$11,500 a year, placing it seventh in the world. Melbourne’s Bourke Street appears at 17 with Queen Street Mall in Brisbane at 32 in the world.
Helping to drive up the cost of retail rental prices is considerable infrastructure investment. In Sydney’s central business district alone, more than AU$60bn is being channelled into street upgrades and new accommodation builds.
New York’s Upper Fifth Avenue (49th Street to 60th Street) continues to command the highest asking rent globally for direct and subleased retail space, with annual rents of around $33,500/sqm, three times that of Pitt Street Mall.
Hong Kong’s Causeway Bay and London’s Bond Street make up the top three. Report author Darren Yates, Head of EMEA Retail Research at Cushman & Wakefield, said: “Despite a lot of negative headlines, global retail remains as dynamic and vibrant as ever in response to technological and demographic change across the world.
“Premium retail destinations, including New York’s Upper Fifth Avenue, Hong Kong’s Causeway Bay and London’s New Bond Street, are highly sought after by international brands seeking to create engaging retail experiences that offer something new and exciting.
“The most innovative retailers are combining their online and physical platforms to create a seamless omni-channel experience for the customer, but profile and location play such a crucial role in the premium retail experience.”