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Main Streets Across the World 2016 2017 .pdf



Nombre del archivo original: Main Streets Across the World 2016-2017.pdf
Título: Main Streets Across the World 2016/2017
Autor: Joanna Tano

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MAIN STREETS
ACROSS THE WORLD
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
2016/2017

CONTENTS
INTRODUCTION

1

GLOBAL MACROECONOMIC OVERVIEW

2

EUROPE OVERVIEW

6

ASIA PACIFIC OVERVIEW

16

AMERICAS OVERVIEW

28

GLOBAL RETAIL RENTS

38

TECHNICAL SPECIFICATION

46

CONTACTS

47

INTRODUCTION
Welcome to 28th edition of Cushman & Wakefield’s global flagship
report, Main Streets Across The World. This report tracks 462 of the top
retail streets around the globe, ranking the most expensive in each
country by their prime rental value and thus enabling analysis of
headline trends in retail real estate performance.
As consumer demands for immediate gratification intensify further, in
an already competitive retail environment, brands must ensure they can
meet these multi-channel needs. They need to provide a platform that
services the traditional bricks and mortar consumers, and those who
want to view and purchase at the click of a button, as well as everything
in between. Real estate owners are actively responding, although at
varying speeds, to these ever changing needs by broadening their
tenant mix, increasing the share of Food & Beverage operators, and/or
adding leisure elements. Technology also features highly, feeding into
the experience, but crucially also gives an insight into the evolving
habits of consumers.
Information on the markets has been provided by Cushman & Wakefield,
external sources and the affiliate partners of Cushman & Wakefield
listed in the table below:

COUNTRY

AFFILIATE PARTNER

Austria

BAR bareal Immobilientreuhand GmbH

Africa

Excellerate Brand Management (Pty) Ltd*

Bulgaria

Forton International

Channel Islands

Buckley & Company Ltd.

China

DTZ/Cushman & Wakefield

Denmark

RED – Property Advisers

Estonia

DTZ Baltic (DTZ Kinnisvaraekspert)

Finland

DTZ Finland OY

Greece

Proprius S.P. LLC

Ireland

Sherry FitzGerald (Commerical) Limited

Israel

Inter Israel (A.I.) Real Estate Consultants

Jordan

Michael Dunn & Co S.A.L

Latvia

DTZ Baltic (DTZ Kinnisvaraekspert)

Lebanon

Michael Dunn & Co S.A.L

Lithuania

DTZ Baltic (DTZ Kinnisvaraekspert)

Malaysia

IVPS Real Estate Sdn Bhd

New Zealand

Bayleys Realty Group Ltd.

Norway

DTZ Realkapital Eiendomsmegling AS.

Oman

Cluttons LLP

Qatar

DTZ Qatar

Rep. of Macedonia

Forton International

Romania

DTZ Echinox Consulting SRL

Serbia

Forton International

Slovenia

S-Invest d.o.o

Switzerland

SPG Intercity Commercial Property Consultants

Thailand

Nexus Property Consultants Ltd.

Ukraine

DTZ Ukraine

* Relates to South Africa, Ghana, Kenya, Mozambique, Namibia, Nigeria,
Tanzania, Zambia, Zimbabwe.
1

GLOBAL
MACROECONOMIC
OVERVIEW

WORLD ECONOMIC GROWTH IS
PROJECTED TO SLOW DOWN
THIS YEAR TO JUST 2.2%
BEFORE RECOVERING TO 2.6% IN
2017 (FIG. 1). THE CONTRIBUTION
BY ADVANCED ECONOMIES HAS
DECREASED WHILE EMERGING
MARKETS WERE STABLE THIS
YEAR. GOING FORWARDS, THE
WEIGHT OF EMERGING MARKETS
ON WORLD OUTPUT WILL
INCREASE AND COUNTRIES IN
THIS GROUP ARE EXPECTED TO
BE THE MAIN DRIVER OF
GROWTH.

Downside risks to the outlook have increased due to recent
developments. Firstly, BREXIT – the British public voted to
leave the EU in late June and the implications of which are
still unclear, however government rhetoric has indicated
that retaining access to the single market is not a priority.
Secondly, there has been a downward revision to US
growth, given weaker momentum in the private sector.
Finally, there are broader concerns about lower
productivity, the impact of an ageing population and
slowdown in trade. As a result, global interest rates are
under further downward pressure, and are expected to
remain at a low level for longer. The low inflation
environment in advanced economies is also a major
challenge for policy makers. The Eurozone economic
recovery is continuing but the outlook is for weak growth
accompanied by challenges that include: elevated banking
sector risk, a number of general elections, reform agendas,
high public debt and the potential for policy errors.
On the positive side, there are less concerns about China’s
prospects in the near term as the economic rebalancing
appears underway. The situation is gradually improving in
stressed economies such as Brazil and Russia – both
economies are expected to show positive growth rates in
2017. Moreover, commodities prices have partially
recovered since the beginning of the year.
FIG 1: EMERGING MARKETS ARE SET TO BE THE MAIN
DRIVER OF GLOBAL GROWTH, WHILE ADVANCED
ECONOMIES ARE SET TO SLOW THIS YEAR
FORECAST

10

GDP, real, % p.a.

8
6
4
2
0
-2
-4
-6

2008

2009

2010

2011

Advanced Economies

Source: Oxford Economics

2

2012

2013

2014

2015

Emerging Markets

2016

2017

World

GLOBAL ECONOMIES ARE AT DIFFERENT CYCLES
As anticipated, the long-term BREXIT implications are still
unclear. Despite some initial market volatility the reaction
has been orderly so far with the main impact coming from
the exchange rate. Sterling has been one of the world’s
worst performing currencies in 2016; since the referendum
it has lost around 17% of its value against the US Dollar and
15% against the Euro. Due to the weaker Pound, UK import
costs are rising with consequences for the pricing of petrol,
some foods and electronic goods. Other major currencies
like the US Dollar and the Euro remain broadly unchanged
in real effective terms. With regards to monetary policies,
global economies are at different stages in the cycle. The
UK and the Eurozone have cut interest rates this year to
0.25% and 0% respectively, in order to sustain the
economic recovery. The European Central Bank might have
reached the limits of monetary policy with a balance sheet
of over Euro 3 trillion. The US raised rates early in 2016 and
is expected to raise further over the next 12 months. Japan
cut its base rate to below zero (-0.1%) in 2016 to
reinvigorate the economy; rates are expected to increase
to around 0% over the coming quarters before remaining
stable (Fig. 2).

CONSUMER SPENDING STILL BENEFITS FROM
MACRO FACTORS
The macro economic trends that supported the global
consumer in 2015 have still been evident in 2016, albeit not
as strong. Commodity prices have rallied this year but
remain low as demand is still weak and uncertain. Oil prices
have recovered since the ten year low in January 2016 and
are currently trading within the USD45-50 band. In the
short term, oil prices have limited upside potential due to
weak demand growth and high supply; however, the major
oil producers have committed to curbing production which
might help to stabilise supply. Consumer price inflation in
advanced economies has slightly increased in recent
months as deflationary pressures have eased. Inflationary
pressures are building up with prices set to rise in 2017 in
the US, UK and Eurozone. In many economies, the
unemployment rate is still decreasing and real earnings are
benefitting from upward pressures. Therefore as a result of
all these factors, household income has risen further this

year which has increased consumer spending, as shown in
Fig. 3. China has the best figures, followed by Spain; on the
other side, Brazil is into negative territory. Despite these
macro trends stabilising, consumer spending is still
expected to grow in several countries next year.

INTERNATIONAL TOURISM CONTINUES TO GROW
AND SUPPORT SALES
According to the UNWTO World Tourism Barometer, world
tourism increased by 4% in the first part of 2016 (Fig. 4)
– representing 21 million international arrivals of overnight
visitors. Europe grew by 3% but showed mixed results:
solid growth in some destinations offset by weaker
performance in others, due to terrorism fears. The
Americas recorded 4% growth driven by Central & South
America. International arrivals in Asia and the Pacific grew
by 9%, driven by solid intraregional demand. This is the
highest growth rate in the world.
China is the world’s top source market and showed 20%
growth in expenditure on international travel; the US is the
second largest market and reported 8% growth; Germany
is the third largest market and reported 4% growth. The
most popular global destination cities in terms of visitors
and spending still include London, New York, Dubai,
Singapore, Hong Kong and Tokyo. A new entry is Bangkok
(in terms of visitors), while the popularity of Paris has
decreased due to terrorism fears.

3

A Cushman & Wakefield Research Publication

According to a recent study made by Bain, the global
luxury market was over Euro 1 trillion at the end of 2015.
The Americas, was the biggest global region for personal
luxury purchases. Luxury consumers in mature markets of
Europe, US and Japan tend to purchase locally, however
tourists are increasingly the driver of growth in these
regions.

AGEING POPULATIONS
ACCELERATING
URBANISATION

FIG 2: INTEREST RATE, CENTRAL BANK POLICY,
END OF PERIOD
FORECAST

1.6

DRIVING RETAIL IN THE LONG-TERM

1.4

RISE OF OMNI-CHANNEL
RETAILING

1.2

%

1.0
0.8
0.6
0.4

TECHNOLOGICAL
BREAKTHROUGHS

0.2
-0.2

2010 Q1
2010 Q2
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
2015 Q1
2015 Q2
2015 Q3
2015 Q4
2016 Q1
2016 Q2
2016 Q3
2016 Q4
2017 Q1
2017 Q2
2017 Q3
2017 Q4

0.0

US

Japan

Eurozone

UK

CLIMATE CHANGE
AWARENESS

Source: Oxford Economics

CORPORATE
RESPONSIBILITY

FIG 3: REAL PRIVATE CONSUMPTION GROWTH, 2016
FORECASTS
8.0
6.0

CHANGES IN CONSUMER
BEHAVIOUR

% p.a.

4.0
2.0
0.0
-2.0

China

Spain

UK

USA

Australia

South Korea

Canada

Eurozone

France

Germany

Italy

Japan

-6.0

Brazil

-4.0

Source: Oxford Economics
FIG 4: INTERNATIONAL TOURIST ARRIVALS, MILLION
1,400
1,200

million

1,000
800
600
400
200
0

1990

1995

Source: UNWTO

4

2000

2005

2010

2014

2015E

2016H1E

MOST EXPENSIVE LOCATIONS BY COUNTRY
RANK RANK
2016 2015 COUNTRY

CITY

LOCATION

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

1
2
3
4
8
5
6
9
7
10
11
12
16
15
14
17
18
19
13
24
22
21
25
20
27
23
28
26
29
30
31
32
33
36
37
34
35

USA
Hong Kong
France
United Kingdom
Japan
Italy
Australia
South Korea
Switzerland
Austria
Germany
China
Ireland
Spain
Singapore
Turkey
Netherlands
Norway
Russia
Luxembourg
Denmark
Canada
Czech Republic
Malaysia
Greece
Taiwan
Vietnam
India
Belgium
New Zealand
Sweden
Finland
UAE
Portugal
Hungary
Israel
Thailand

New York
Hong Kong
Paris
London
Tokyo
Milan
Sydney
Seoul
Zurich
Vienna
Munich
Shanghai
Dublin
Barcelona
Singapore
Istanbul
Amsterdam
Oslo
Moscow
Luxembourg City
Copenhagen
Toronto
Prague
Kuala Lumpur
Athens
Taipei
Ho Chi Minh City
New Delhi
Antwerp
Auckland
Stockholm
Helsinki
Dubai
Lisbon
Budapest
Tel Aviv
Bangkok

38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57

39

43
48
45
40
47
50
49
65
51
57
52
55
53
56
59

South Africa
Brazil
Poland
Serbia
Colombia
Mexico
Lebanon
Qatar
Channel Islands
Croatia
Indonesia
Slovenia
Jordan
Saudi Arabia
Bulgaria
Philippines
Ukraine
Romania
Slovakia
Lithuania

Johannesburg
Rio de Janeiro
Warsaw
Belgrade
Bogota
Mexico City
Beirut
Doha
St Peter Port
Zagreb
Jakarta
Ljubljana
Amman
Jeddah
Sofia
Makati (Metro Manila)
Kyiv
Bucharest
Bratislava
Vilnius

Upper 5th Avenue (49th – 60th Sts)
Causeway Bay
Avenue des Champs Élysées
New Bond Street
Ginza
Via Montenapoleone
Pitt Street Mall
Myeongdong
Bahnhofstrasse
Kohlmarkt
Kaufinger/Neuhauser
West Nanjing Road
Grafton Street
Portal de L'Angel
Orchard Road
Centre – Istiklal Street
Kalverstraat
Karl Johan
Stoleshnikov
Grande Rue
Stroget (including Vimmelskaftet)
Bloor Street
Na Příkopě street
Pavilion KL (prime lots)
Ermou
Zhongxiao
Best Achieved Shopping Mall (GF)
Khan Market
Meir
Queen Street
Biblioteksgatan
City Centre
Prime – A
Chiado
Vaci utca
Kikar Hamedina
Central Retail District (CRD)
(Rajprasong/Sukhumvit street)
Sandton City
Garcia D'avilla (Ipanema)
Nowy Swiat
Kneza Mihaila
Zona T – 82 Calle
Masaryk
Rue Hamra
Prime
High Street
Ilica Street
Prime
Čopova
City Centre (CBD)

58

60

Latvia

Riga

59
60
61
62
63
64
65
66
67
68
69
70
71

61
54
64
46
58

Cyprus
Ghana
Oman
Nigeria
Kenya
Peru
Estonia
Zambia
Macedonia
Mozambique
Tanzania
Zimbabwe
Namibia

Nicosia
Accra
Muscat
Lagos
Nairobi
Lima
Tallinn
Lusaka
Skopje
Maputo
Dar es Salaam
Harare
Windhoek

42
41

68
66
67
63
69
70
71

Vitosha Blvd
Makati CBD, Rockwell, Century City
Gorodetskogo Street
Calea Victoriei
Obchodna ulica
Gedimino Ave./Pilies St.
Didzioji St.
Kalku St./Valnu St./Audeju St./
Terbatas St./Kr.Barona St.
Ledras Street
High Street

San Isidro

RENT Q2 2016 RENT Q2 2016
US$/SQ FT/YEAR €/SQ M/YEAR OUTLOOK
3,000
2,878
1,368
1,283
1,249
1,239
968
908
868
477
458
411
343
341
328
312
310
300
291
260
257
250
248
244
242
225
223
222
191
187
163
161
150
124
124
123
122

29,065.5
27,884.0
13,255.2
12,433.6
12,102.9
12,000.0
9,383.4
8,793.5
8,408.0
4,620.0
4,440.0
3,977.5
3,327.4
3,300.0
3,180.8
3,024.3
3,000.0
2,904.4
2,818.2
2,520.0
2,486.6
2,424.6
2,400.0
2,364.8
2,340.0
2,177.7
2,160.2
2,153.3
1,850.0
1,807.8
1,583.0
1,560.0
1,450.8
1,200.0
1,200.0
1,192.0
1,180.4

114
113
111
105
100
100
93
92
91
87
80
74
65
64
57
57
56
56
54
50

1,106.3
1,095.8
1,080.0
1,020.0
972.1
972.1
900.1
889.9
880.7
840.0
771.3
720.0
630.1
624.0
552.0
551.0
540.1
540.0
528.0
480.0

50

480.0

50
48
46
45
41
40
40
39
37
37
33
28
22

480.0
464.4
448.9
432.0
399.6
388.8
384.0
378.0
360.0
356.4
324.0
270.0
216.0
5

EUROPE

OVERVIEW
“Retailers are facing technological advances head
on, with more and more brands opting to offer online
sales alongside a physical presence, and not instead
of, and they are raising the customer experience bar
with leading examples including Samsung’s 837
Washington Street store in New York, Primark’s
new store in Madrid and Apple’s new refitted store
on Regent Street in London. Demand is strong
but for the right space in the right location and
the lack of supply along the majority of Europe’s
main thoroughfares is seeing rents rise further
and expanding the boundaries of well-established
streets. This is exemplified by growth seen in some of
London’s premier streets – Bond Street and Oxford
Street. There is also a shift going on with a notable
influx of food and beverage operators vying for high
footfall units across Europe.”
JUSTIN TAYLOR
Head of Retail
EMEA

PARIS, FRANCE
6

PARIS’ AVENUE DES CHAMPS
ÉLYSÉES RETAINED ITS CROWN
AS THE MOST EXPENSIVE RETAIL
LOCATION WITHIN THE EMEA
REGION, AND THIRD IN THE
2016 GLOBAL RANKING,
DESPITE A DECLINE IN TOURIST
NUMBERS AND SPEND, WHICH
CONTRIBUTE TO THE HEALTH
OF THE RETAIL SECTOR.

The French capital is home to five of the top most
expensive high streets within EMEA. Despite fragile
economic growth and a decline in cross border tourism
prestigious addresses such as the Champs Élysées remain
resilient with evident demand from retailers such as
Skagen and Five Guys to set up new operations, or Nike
that is looking to expand. The opening of Galeries
Lafayette in October 2018 will provide some much needed
supply in the city centre. Rents across the majority of other
Parisian high streets continued to grow, most evident along
Avenue George V and Avenue Montaigne, both recording
in excess of 8%. Rue St. Honoré has enhanced its
positioning of the luxury high street by the arrival of
upmarket brands such as Fendi, Stella McCartney, Brioni,
and Paul Smith and further growth on the 4.2% over the
year to June is anticipated as supply dries up. The opening
of new brands -John Galliano, Crockett & Jones and
Weston – in the historic Le Marais district reaffirms the
positioning of the location as the destination for men’s
luxury fashion brands.
Large regional cities, such as Lyon, Toulouse, Nice, Cannes
and Bordeaux also experienced strong interest, notably
from newcomers to the French retail scene but this is yet to
be reflected in rental rises which generaly were unchanged
over the last 12 months or rose marginally. Traditional high
street locations are also beginning to be negatively
impacted by the development of new branded retail parks
and local authorities will have to work hard to enhance city
centres to continue to attract consumers.

5

OUT OF THE TOP 10

most expensive high streets in
EMEA are in France

7

LONDON, UK

LONDON’S BOND STREET
REMAINED FIRMLY IN SECOND
PLACE IN THE EMEA RANKING
OF MAIN STREETS AND FOURTH
PLACE IN THE GLOBAL RANKING
AS RETAILERS FLOCK TO THE
UK’S CAPITAL.

UK food and clothing retailers are the primary sectors
driving activity, but there is also a steady stream of new
entrants to the UK market, mainly from the US, alongside a
growing number of Asian and European brands. Going
forward, one of the biggest influences on the prime
London high street market will be the increase in business
rates that will kick in next year – this is likely to cause a
slowdown in the extremely strong rental growth seen over
the past few years. With respect to retail sales, due to the
sterling devaluation linked to Brexit this has actually
resulted in an increase in retail sales in Central London
from overseas tourists. The major regional cities and top
market towns showed positive rental growth as the cities
continued to benefit from the migration of demand from
supply starved locations in London and the South East
– Glasgow recorded 15.4% growth, Nottingham 12.9% and
Birmingham 10.8% in the year to June 2016.

Covent Garden recorded the

STRONGEST
GROWTH
Strong occupier demand for high street locations across
the UK, many of which are suffering from limited available
units, recorded positive rent performance – this was
particularly evident in London which saw some of the
strongest rental growth across EMEA with retailers willing
to pay a premium in order to secure sites and capitalise on
healthy footfall figures. New Bond Street saw rents rise by
14.3% over the last 12 months however, Covent Garden
recorded the strongest growth of 31.6% over the same
period, followed by Sloane Street (27.3%).

8

31.6%

MOST EXPENSIVE LOCATIONS BY CITY – EUROPE

2016 2015 TOWN
1

1

Paris

COUNTRY

DISTRICT

France

Avenue des Champs Élysées

2016 RENT
US$/SQ FT/
YR

2016 RENT
€/SQ M/YR

2015 RENT
US$/SQ FT/YR

2015 RENT
€/SQ M/YR

1,368

13,255

1,372

13,255

2

2

London

UK

New Bond Street

1,283

12,434

1,321

12,762

3

3

Milan

Italy

Via Montenapoleone

1,239

12,000

1,035

10,000

4

4

Rome

Italy

Via Condotti

1,135

11,000

983

9,500

5

5

Zurich

Switzerland

Bahnhofstrasse

868

8,408

895

8,643

6

6

Cannes

France

La Croisette

608

5,891

610

5,891

7

7

Vienna

Austria

Kohlmarkt

477

4,620

478

4,620

8

10

Florence

Italy

Via Roma

464

4,500

414

4,000

9

8

Munich

Germany

Kaufinger/Neuhauser

458

4,440

460

4,440

10

9

Venice

Italy

Calle 22°Marzo/Calle S.Moisè

433

4,200

414

4,000

11

13

Frankfurt

Germany

Zeil

390

3,780

391

3,780

12

14

Hamburg

Germany

Spitalerstraße

384

3,720

385

3,720

13

11

Geneva

Switzerland

Rue de Rhone

381

3,696

398

3,841

14

15

Berlin

Germany

Tauentzienstrasse

378

3,660

379

3,660

15

16

Cologne

Germany

Schildergasse

365

3,540

366

3,540

16

17

Stuttgart

Germany

Konigstrasse

347

3,360

342

3,300

17

18

Dusseldorf

Germany

Konigsallee

347

3,360

342

3,300

18

20

Dublin

Ireland

Grafton Street

343

3,327

329

3,176

19

19

Barcelona

Spain

Portal de L'Angel

341

3,300

335

3,240

20

22

Madrid

Spain

Preciados

316

3,060

311

3,000

MILAN HOLDS ON TO THIRD
PLACE FOR THE MOST
EXPENSIVE RETAIL CITY
IN EMEA.

Via Montenapoleone in Milan saw robust rental growth of
20% over the year to June followed by Via Condotti in
Rome (15.8%), reaffirming the continued allure of Italy’s key
cities from both the mass and luxury segments of the retail
market. Prime positions in top locations continue to attract
strong demand, despite a scaling back in retailer expansion
plans. Considering the very limited supply for units between
200-400 sq m operators are still willing to pay higher prices
in order to secure top locations which is stirring
investor interest.
Healthy rental performance has also been recorded in other
locations such as Via Roma in Florence (12.5%) and Calle
Larga XXII Marzo/Calle San Moisè in Venice (5%), although
all the rental growth happened in the second part of 2015.

MILAN, ITALY

Occupier demand will continue, particularly from mass
market operators, but at a slower pace and rents are
therefore expected to remain unchanged over the next 12
months. The F&B sector is expanding in the high street
market where many operators are planning to open new
stores, representing an interesting alternative for secondary
locations where landlords are having a harder time in
finding  enants.

9

EUROPE KEY FACTS

MOST EXPENSIVE RETAIL LOCATION
Paris’s Avenue des Champs Elysees, France
US$1,368/sq ft/yr
€13,255/ sq m/yr

FURTHER ENHANCEMENTS OF
THE SPANISH ECONOMY ARE
HAVING A POSITIVE EFFECT ON
DOMESTIC DEMAND, AS
HOUSEHOLD CONSUMPTION
IMPROVES AND CONSUMER
SPENDING GROWS.

MOST AFFORDABLE RETAIL LOCATION
Kaunas, Lithuania
US$17.96/sq ft/yr
€174/sq m/yr

STRONGEST RENTAL GROWTH
London’s Covent Garden, United Kingdom

+32%
BIGGEST RENTAL DECLINE
Moscow’s Stoleshnikov, Russia

-26%
PROPORTION OF RENTAL
GROWTH TYPES IN EMEA
Declining
5%

Stable
25%

Growing
70%

BARCELONA, SPAIN
10

There is limited availability on prime high streets and with no
signs of improving, there is healthy competition from both
existing retailers and new entrants in securing good units
along key thoroughfares. This is seeing an element of caution
creep into the market with a growing divergence between
landlord expectations and the ability and willingness of the
tenants to pay asking rents with the largest impact on the
luxury market, where deal flow has decreased the most. The
mass market is much more resilient. Rental growth was
recorded in the majority of prime locations such as Portal de
L'Angel (1.9%) and Passeig de Gracia (6.5%) in Barcelona
and Madrid’s Preciados (2.0%) and Serrano (6.7%)
underpinned by robust market development in the last
couple of years and retailers continue to have active
expansion plans, particularly in light of the signs of a rise in
consumption. Booming tourism has also led to robust rental
growth in Palma de Mallorca.

THE PORTUGUESE RETAIL MARKET HAS UNDERGONE A
MAJOR CHANGE OVER THE LAST FEW YEARS AND A
COMBINATION OF FACTORS CONTRIBUTED TO THE
STUNNING RECOVERY – ECONOMIC RECOVERY,
GROWTH IN TOURISM, MATURITY OF THE SHOPPING
CENTRE MARKET AND CHANGE OF LEASE LAW – ALL
PLAYING A ROLE.
Lisbon’s traditional retail zones such as Avenida da
Liberdade, a prime choice for premium and luxury brands,
Chiado, the capital’s trendiest area and Baixa (downtown
Lisbon) have seen some upward adjustment in rents, the
main change is likely to be in secondary areas, where demand
has been increasing more intensively. In the early years
demand was driven by luxury operators but is now expanding
to mass market concepts, especially as the pace of expansion
from luxury operators has slowed, although a number of
premium retailers have announced imminent openings
including Bulgari, Pinko and Versace.
The withdrawal of the cap on rental increases on old lease
agreements has delivered a large amount of space back to
the high street market in Lisbon and Porto, which have
immediately became a key target for premium as well as
mass brands. Tourism will continue to be one of the main
drivers of high street retail, and is also one of the reasons why
several catering operators have and will, continue to open
ranging from new concepts, signature restaurants to
international chains. The small size of the market is a limiting
factor but urban renewal projects should incentivise demand
and alleviate some demand constraints in the future.

GERMANY, A KEY RETAIL
MARKET IN EUROPE AND
TARGET COUNTRY FOR MANY
INTERNATIONAL RETAILERS BOTH
FROM A BRAND RECOGNITION
PERSPECTIVE AND SALES
VOLUME PERSPECTIVE, GIVEN ITS
SIZE, IS PERFORMING WELL.

Consumer sentiment in Germany remains stable at a high
level. Kaufinger/Neuhauser in Munich is the country’s
most expensive retail destination, but rental growth was
largely muted across the board over the 12 months to June
2016. Some fashion retailers, particularly mass market
brands who have been active in the German market over a
long period, including SinnLeffers, Gerry Weber and Tom
Tailor, are currently negotiating rental reductions and/or
store closures as they respond to the increasingly
competitive market. Whether as a consequence of rising
online sales, weaker footfall and/or the rising number of
international competitors, a number of retailers in this
segment are being compelled to reassess their
expansion plans.

The luxury end of the spectrum however, continues to see
robust demand and in light of the tight supply situation,
rents are pushing upward slightly. There is evidence that
some premium brands are increasingly willing to consider
key money in order to obtain a desired prime unit from
another tenant. The tight supply is also leading to the
strategic extension of luxury locations – Frankfurt’s
premium location, Goethestraße, was extended by the
development of the office and commercial building ‘ONE
Goetheplaza’ and since late 2014, premium brands, such as
Prada, Louis Vuitton and Bottega Veneta have opened new
stores there. At the same time, developers have continued
to expand the luxury shopping location, with some luxury
brands such as Etro and Brunello Cucinelli opening stores
in Luginsland, a neighbouring street to Goethstraße, in
2015. Subsequently some brands – positioned between
luxury and mass retail – such as Picard, Rigby & Peller and
Elsbach Denim Library opened in the first half of 2016 in
the ‘ma’ro’ which is located at the opposite end of
Goethestraße.

IN AUSTRIA, STABLE TRADING CONDITIONS SAW
RENTAL LEVELS ON THE CORE HIGH STREETS IN
VIENNA SUCH AS KOHLMARKT, KÄRNTNERSTRASSE
AND MARIAHILFERSTRASSE HOLD UNCHANGED OVER
THE YEAR TO JUNE 2016.
However, with more robust consumer demand notably
evident, international retailers continue to look for new
sites in order to expand their existing portfolios against the
limited amount of supply of quality retail space, so positive
growth is highly anticipated going forward. Some retailers
have started to focus on securing units on streets adjacent
to the traditional shopping streets as these retail areas
expand, and for now at least, asking rents are being
offered at a discount to prime.

MUNICH, GERMANY

11

A Cushman & Wakefield Research Publication

THE STRENGTHENING SWISS FRANC, FALLING
VOLUME OF SHOPPING TOURISM AND E-COMMERCE
IN SWITZERLAND HAVE LED TO INCREASING
CAUTIOUSNESS AMONG RETAILERS IN THE MASS
MARKET SPACE IN PARTICULAR AS PRESSURE MOUNTS
ON THEIR TURNOVERS.
Existing brands are looking at consolidating their footprints
into their high value units, and those with expansion plans
are scaling them back somewhat, reflected in stable rental
values. Bahnhofstrasse, Zurich’s luxury destination has
managed to maintain its fifth spot in the European ranking
of main streets across the region, recording 1.1% y-o-y rental
growth. This is driven out of luxury operators taking
advantage of the slowdown elsewhere and developing
highly personalized customer shopping experiences.

BELGIUM IS SEEING SOMEWHAT OF A TWO-TIER
MARKET EMERGING WITH A DYNAMIC TOP-END DESPITE
SOME BRANDS EXITING THE RETAIL SCENE, THERE ARE
MORE NEW PLAYERS ENTERING TO COUNTER THIS.
Prime high streets are seeing strong demand for flagship
stores which has led to an improved and positive rental
performance in Brussels; Rue Neuve (5.7%), Avenue
Louise (1.4%), and other core cities such as Meir in
Antwerp (5.7%), Vinave d'Ile in Liege (7.1%) and
Hoogstraat in Hasselt (8.7%). With an uptick in
e-commerce those high visibility units offering an
experience are key to retailer success. The terrorist attacks
in Spring 2016 undoubtedly had an impact on tourist
numbers in Brussels, an important driver of luxury retail
sales, but there are signs that this is now fading away.

DUBLIN, IRELAND

12

IN THE NETHERLANDS, 2016 HAS SEEN A NUMBER OF
RETAILER INSOLVENCIES LEAVING GAPS IN A NUMBER
OF THE PRIME SHOPPING STREETS CREATING NEW
POSSIBILITIES FOR RETAIL CHAINS WANTING TO
EXPAND SUCH AS DECATHLON.
Amsterdam and the wider Randstad area are increasingly
important for economic growth and thus people are
migrating to the area – this is providing a larger base for
retailers with key high streets in Amsterdam the only
streets to have some positive rental growth over the year
to June; Kalverstraat (3.4%) and P.C. Hooftstraat (9.8%).
There is however, growing demand from international
retailers, who are particularly interested in the top twenty
cities, but this has not yet been reflected in rental growth
outside of the capital.

GRAFTON STREET IN DUBLIN SAW 4.8% RENTAL
GROWTH IN THE YEAR TO JUNE AND REMAINS A KEY
TARGET FOR BOTH MASS AND LUXURY RETAILERS.
Rising demand from new entrants such as Victoria’s Secret
and Other Stories is seeing the traditional pitch extend
beyond the core to the surrounding streets to include
Suffolk Street, Nassau Street and Dawson Street. Demand
in the regional cities of Cork, Galway and Limerick is
driven largely by domestic and UK operators, with slow,
but rising appetite from international brands. There are
some bespoke outlet villages such at the Kildare Village
outside Dublin which is operated by Value Retail, but
evidence indicates that this is not detracting from the
attractiveness of the city centre.

STOCKHOLM, SWEDEN,

THE NORDICS HAVE SEEN RELATIVELY STABLE RENTS
OR MARGINAL INCREASES IN THE YEAR TO JUNE. IN
SWEDEN’S CAPITAL, STOCKHOLM THE REJUVENATION
OF OLDER AND LESS ATTRACTIVE CITY BLOCKS
ACROSS THE CBD IS ONGOING AND WILL LEAD TO
MORE SHOPPING SPACE BEING ADDED TO THE
STOCKHOLM RETAIL SCENE GOING FORWARD.
CBD mass retail will have some new nodes such as
Kungsgatan east of Sveavägen providing more
competition for Drottninggatan as landlords plan to invest
to increase attractiveness of both restaurants and shops
going forward. Extensive development and refurbishments
along Hamngatan and Regeringsgatan (south of
Hamngatan) will also increase the attractiveness of these
shopping locations together with the re-opening of the
Gallerian shopping centre on Hamngatan – all of which is
already indicating a positive uplift in retail rents over the
coming months. Luxury retail, currently focused on the
Biblioteksgatan/Birger Jarls gatan triangle with a flurry of
new brands opening flagship stores in recent years
including Prada, Chanel, Celine and Ralph Lauren, is
expected to see growing competition from other prime
high streets, which undergo rejuvenation and host a mix of
new restaurants and shops with a greater mix of tenants.

IN DENMARK, PRIME HIGH STREETS SAW EITHER
STABLE OR LOW RENTAL GROWTH WITH STRØGET IN
COPENHAGEN RISING BY 2.8% Y-O-Y TO JUNE AND
REMAINS THE MOST EXPENSIVE HIGH STREET IN THE
COUNTRY.
While currently there are no high streets solely dedicated
to upmarket retail – Louis Vuitton is located next to Zara
and Gucci Is located next to Urban Outfitters – luxury
retailers are seeking to open up their own ‘maison’ in
Copenhagen where they can operate next to each other
and maximize visibility. The limited availability of prime
high street space and strong occupier demand in Norway
have led to rental rises – Karl Johans Gate and Nedre
Slottsgate in Oslo saw 8.0% and 12.5% respective growth
in the year to June and it is likely the best adjoining streets
will begin to see better footfall figures. In Finland, the
significant trend is the rising popularity of restaurants and
coffee shops operators. The main department stores such
as Stockmann and Sokos are subleasing space for wellknown retail brands such as Marks & Spencer and Hamleys.
Luxury brands have not yet penetrated the Finnish market
on a large scale, only occupying a small area in Helsinki’s
city centre. However, indications are that more will open
their doors in the near future with a preference for
locating in department stores rather than opting for
standalone units.

13

PRAGUE, CZECH REPUBLIC

IN POLAND, THE DEVELOPMENT OF RENTS ON PRIME
HIGH STREETS IN CORE CITIES HAS BEEN VARIED.
WHILE SOME LOCATIONS SAW POSITIVE RENTAL
GROWTH – NOWY SWIAT IN WARSAW 5.9% Y-O-Y AND
UL FLORIANSKA IN KRAKOW 4.2% Y-O-Y SOME HIGH
STREETS EXPERIENCED MODERATE DECLINES OR
STABLE RENTS – CHMIELNA IN WARSAW -7.1% Y-O-Y
AND RYNEK IN KRAKOW 0% Y-O-Y.

MAIN HIGH STREETS IN THE CZECH REPUBLIC HAVE
CONTINUED TO SEE HIGH DEMAND FROM MASS AND
LUXURY RETAILERS. PARIZSKA STREET IN PRAGUE,
HOME TO THE MAJORITY OF LUXURY BRANDS, SAW 5.4%
RENTAL GROWTH IN THE YEAR TO JUNE.
With demand improving from this segment of the market,
the traditional boundaries are expected to spread further
to Siroka Street. Na Prikope Street in Prague, traditionally
attracted mass market retailers, but the whole
development of the street (new projects, environment,
newcomers etc) has seen higher demand here from
premium brands than mass market retailers. As an
historical retail destination, Wenceslas Square is becoming
the prime mass market retail area, and there are also
opportunities to place important department stores here.

5%

PARIZSKA STREET

RENTAL GROWTH

in the year to June

THE IMPROVING ECONOMY IN HUNGARY WITH LOW
UNEMPLOYMENT AND INFLATION HAS HAD A POSITIVE
IMPACT ON RETAIL SALES, WHICH ROSE BY 5.7% IN THE
YEAR TO JUNE 2016.
The abolishment of the Sunday closure regulation which was
in effect for only one year, will further support robust retail
sales in the months ahead. Váci utca in Budapest has seen
improvements over the last year with new retailers such as
CCC, Tiger and Cadenzza opening flagship stores in the
area and rents rising by 5.3%. The most significant opening
was the 5,800 sq m by H&M. Andrassy ut also saw positive
rental growth of 12.5% driven by demand at the higher end
of the market with COS, Michael Kors and Ralph Lauren all
securing units.
14

Occupier demand has been driven by mass market retailers
looking to establish a strong presence on prime high streets,
while demand from luxury retailers has slowed. Rising
demand from restaurants and coffee shops operators who
are interested in units on streets with high footfall volumes
has been noted. The outlook for Polish retail is positive
underpinned by an improving economy, and due to the size
of the market still attracts new international retailers who
are not only looking at Warsaw for opportunities but
secondary and tertiary cities.

ELSEWHERE ACROSS EASTERN EUROPE, SLOVAKIA,
BULGARIA AND ROMANIA SAW STABLE OR MODERATE
RENTAL GROWTH AT BEST. INTEREST IS TARGETING
DOMINANT SHOPPING CENTRES IN BRATISLAVA AT
THE EXPENSE OF HIGH STREET SITES WHERE DEMAND
IS LIMITED.
The stagnation of retail sales along on Bratislava’s main
high streets has led to the relocation of previously
successful retailers into new shopping centres. Comparably
in Romania, international retailers assessing expansion
strategies are focusing their energy on securing space in
prime shopping centres and well-located retail park
schemes in the larger regional cities. In Sofia, health,
beauty and fashion retailers are the main drivers of
occupier demand on prime high streets together with
coffee shops and restaurant operators along Vitosha Blvd.
and other central locations in Sofia, attracted by high
pedestrian traffic. The area enclosed by Saborna, Lege and
Alabin Streets in Sofia is emerging as a luxury hotspot with
Philipp Plein, Ermenegildo Zegna, Marc Cain and Versace
already trading from units located here.
The retail market in the Baltic region is dominated by
shopping centres as opposed to high streets. However, there
is still enough demand from retailers for high street units to
maintain the status quo and rents have remained unchanged
over the year to June. Tenant rotation has been low and
retail units on prime high streets have been occupied by the
same tenants, usually souvenir retailers, and restaurant or
coffee shop operators for more than twenty years, while
presence of luxury brands has been very limited.

ISTANBUL, TURKEY

TURKEY IS DEALING WITH THE IMPLICATIONS OF THE
DEEPENING GEOPOLITICAL ISSUES IN THE WIDER
REGION WITH THE ECONOMY SLOWING TO 3.1% IN Q2
2016 AND CONSUMER SPEND GROWTH MODERATING,
BUT STILL STRONG AT 5.2%.
Demand along the main streets in Istanbul and Ankara
tends to be driven by domestic retailers with international
brands struggling to justify expanding in, or into, the
region as retail sales decline and overhead expenses rise
further. Rents along the most popular streets in Istanbul
such as Istiklal Street are seeing signs of rents coming
under downward pressure – a similar trend is seen in other
locations such as Alsancak in Izmir (-9.7%) and Kızılay
Bulv in Ankara (-2.9%) and this is in spite of the lack of
available units which has spurred some urban
transformation projects and the refurbishment of older
buildings, but landlords will need a clear strategy on where
the return will come from when commencing such projects.

RUSSIA HAS SEEN THE SHARPEST CONTRACTION IN
RENTS OVER THE LAST 12 MONTHS WITH FALLS ACROSS
ALL MAIN STREETS IN MOSCOW AND ST PETERSBURG
AS THE ECONOMY STRUGGLES WITH SANCTIONS,
WHILE GROWTH IS SLOWLY RETURNING, THE
RECOVERY IS UNBALANCED AND REMAINS
CHALLENGING – GDP GROWTH IS EXPECTED TO STILL
BE IN NEGATIVE TERRITORY AT THE END OF 2016 BUT
THE RATE OF DECLINE IS MORE MODERATE.
The retail sector is still struggling but 2016 has seen the
beginnings of stabilisation with domestic retailers much
more active than international brands – some of whom
have retreated to more Western European markets.
However, with rising numbers of Russians now spending
more money at home this has gone some way to
supporting the retail sector, although not yet impacting on
more positive underlying real estate fundamentals.

IN UKRAINE, AFTER A SHARP DECLINE IN HIGH STREET
RENTS IN KYIV, LEVELS APPEARED TO HAVE STABILIZED
IN THE YEAR TO JUNE 2016.
After the wave of demonstrations and civil unrest in the
recent past, the most popular high street, Khreshchatyk
Street has been losing its appeal to retailers whose focus is
now shifting to Lva Tolstoho Square and adjacent streets.
However, the planned opening of the renovated TSUM
shopping centre in late 2016 on Kreshchatyk Street,
combined with economic and political stabilisation will
bring a revival the performance of high street retailing in
central Kyiv, making it more attractive to local and
international retailers as well as potential new brands, but
progress will be slow and cautious.

THE RETAIL SECTOR
IS STILL STRUGGLING
BUT 2016 HAS SEEN THE
BEGINNINGS OF STABILISATION

15

ASIA PACIFIC
OVERVIEW
“Overall, retailers continued to be cautious
in their store expansion across the region
due to a number of concerns including
continued global economic instability, and
we see this trend continuing well into 2017.
When expansion does happen, the focus is
typically on high-performing malls and high
streets with strong pedestrian traffic (i.e.
quality over quantity). All in all, despite the
cautious outlook across the region, major
international and regional retailers will have
to eye overseas growth, as their respective
domestic markets reach saturation point and
investors demand results.”
THEODORE KNIPFING
Head of Retail
Asia Pacific

HONG KONG
16

THE CAUSEWAY BAY AREA IN
DOWNTOWN HONG KONG
RETAINS THE TOP SPOT IN THE
ASIA PACIFIC RANKING AS THE
MOST EXPENSIVE SHOPPING
LOCATION DESPITE A DROP IN
RENTS OVER THE LAST 12
MONTHS AS DEMAND COOLS ON
A DECLINE IN VISITOR NUMBERS
FROM MAINLAND CHINA.

The retail sector in Hong Kong is undergoing a structural
change with a shift away from the reliance on top-end
luxury brands to support retail sales, towards one that is
seeing mass market brands come to the fore, such as fast
fashion and food & beverage operators. However, with
asking rents unachievable, a number of brands are
applying pressure on landlords to lower their expectations,
and some are obliging as they look to protect income
streams. The decline in asking rents may also create
opportunity for some retailers who are looking to enter
and/or expand in Hong Kong to snap up units on prime
pitches on good rental terms. One recent example is
Versace’s opening of a flagship store in Central in October
2016. Meanwhile, other luxury brands scale back their
operations or close as they face headwinds of dwindling
retail sales.

SHIFT

AWAY

FROM THE TOP-END LUXURY BRANDS
TOWARDS FAST FASHION AND FOOD & BEVERAGE OPERATORS

17

THE RETAIL MARKET IN TOKYO
STRENGTHENED OVER THE
YEAR TO JUNE, PUSHING GINZA
TO SECOND PLACE IN THE
REGIONAL RANKING OF MAIN
STREETS.

The Tokyo 2020 Olympic Games have prompted the (re)
development of urban retail complexes and high streets
with retailers looking to cash in on inflated visitor numbers
associated with the sporting event. This is pertinent as
consumers in Japan, both domestic and foreign alike, are
transitioning from a focus on the consumption of goods to
a focus on the consumption of experience. In turn, this is
shaping the way for the development of shopping
complexes such as NEWoMan, Tokyu Plaza Ginza and Atre
Ebisu, as destinations offering a broad range of retail,
leisure and F&B operators.
Retailers in Japan are actively looking to enhance their
high street presence such as Cartier and Bally who recently
opened flagship stores in Ginza. The desire from luxury
brands for a high street presence will persist although
rental values along high streets, that were once rapidly
increasing, are now showing signs of slowing as consumer
spend stalls. Pockets of opportunity for an upswing in
rental growth still exists along Ginza and Shibuya in Tokyo
where robust demand continues. Supporting the sector are
the government’s efforts to boost international arrivals to
40 million by 2020 and this surge of consumers, the
majority of whom are from the wider Asian middle class,
has shown to be a profitable income stream for retail
operators not only in Tokyo but for the retail sector in
Osaka as well.

TOKYO, JAPAN
18

LOW INTEREST RATES AND THE
STRONG HOUSING MARKET IN
SOUTH EASTERN AUSTRALIA
HAVE BEEN KEY DRIVERS OF
THE RETAIL MARKET.

Tourism in general, but from China in particular, has also
been a component of the luxury retail story. Chinese
tourists tend to favour urban destinations, rather than
coastal, which has helped prime CBD retail strips in Sydney
and Melbourne especially, and with competition for key
streets rising from a breadth of retailers this is squeezing
rents resulting in positive rental growth of around 5.7%
over the twelve months to June 2016. Despite this Sydney
slipped a spot to third in the regional ranking. It remains to
be seen to what extent slowing growth in China will impact
the retail sector.
To date there has been a reasonably low level of
penetration from large international retailers indicating
that opportunity still exists, but potential challenges
remain such as Australia’s relatively high labour costs and
slower income growth. However, the expansion of some,
such as Aldi and Zara, has been successful. A successful
strategy of international retailers has been to open
‘fortress’ or mega stores in key locations firmly establishing
a presence and then expand judiciously. John Lewis’
proposal to open its first stores in strong retail locations in
five major shopping centres located in Sydney’s CBD,
Northern Beaches and Eastern Suburbs as well as
Melbourne’s CBD and Chadstone (the largest shopping
centre in the southern hemisphere) suggests a similar
tactic is being adopted.

SYDNEY, AUSTRALIA

MOST EXPENSIVE LOCATIONS BY CITY – ASIA PAFICIC
2016

2015 TOWN

1

1

Hong Kong

2016 RENT
US$/SQ FT/YR

2016 RENT
2015 RENT
€/SQ M/YR US$/SQ FT/YR

COUNTRY

DISTRICT

Hong Kong

Causeway Bay

2,878

27,884

2015 RENT
€/SQ M/YR

3,405

32,898

2

3

Tokyo

Japan

Ginza

1,249

12,103

882

8,520

3

2

Sydney

Australia

Pitt Street Mall

968

9,383

946

9,140

4

4

Seoul

South Korea

Myeongdong

908

8,793

882

8,519

5

5

Melbourne

Australia

Bourke Street

484

4,692

473

4,570

6

6

Shanghai

China

West Nanjing Road

7

7

Singapore

Singapore

Orchard Road

8

10

Beijing

China

9

9

Brisbane

Australia

411

3,977

437

4,226

328

3,181

337

3,253

Wangfujing

299

2,894

291

2,811

Queen Street Mall

294

2,849

303

2,932

10

8

Guangzhou

China

Ti Yu Zhong Xin District

289

2,804

318

3,071

11

12

Shenzhen

China

Luohu

266

2,574

261

2,518

12

11

Kuala Lumpur

Malaysia

Pavilion KL

244

2,365

261

2,519

13

13

Taipei

Taiwan

Zhongxiao

225

2,178

246

2,376

14

16

Ho Chi Minh City

Vietnam

Best Achieved Shopping Mall

223

2,160

212

2,046

15

14

New Delhi

India

Khan Market

222

2,153

236

2,276

16

15

Hangzhou

China

206

1,998

219

2,113

17

18

Auckland

New Zealand

187

1,808

173

1,675

18

17

Nanjing

China

181

1,757

203

1,960

19

20

Wellington

New Zealand

Lambton Quay

173

1,669

158

1,530

20

19

Hanoi

Vietnam

Prime shopping mall

167

1,620

167

1,616

Queen Street

19

SINGAPORE

SINGAPORE HAS SEEN MASS
RETAIL EXPAND TO SUBURBAN
MALLS AS SHOPPERS
INCREASINGLY LOOK TO
CONSUME IN THEIR
NEIGHBOURHOODS, NEGATING
THE NEED BY SOME TO VISIT
TRADITIONAL HOT SPOTS SUCH
AS ORCHARD ROAD AS THEY
HAVE ACCESS TO HIGH STREET
LABELS SUCH AS H&M, MARKS
AND SPENCER, MANGO NEARBY.

BOOST

INTERNATIONAL ARRIVALS TO

40 MILLION

BY 2020

20

Orchard Road has seen a decline of 2.6% in rents over the
last twelve months given the volatile tourist numbers,
lower footfall numbers, the rise of e-commerce and
persistent economic headwinds. Amidst falling retail rents
however, this has helped to spur the expansion plans of
some international retailers such as Victoria’s Secret,
Michael Kors and Rolex who have opened flagship stores.
Those able to manage the balance of lower real estate
costs with rising overheads will be the most successful with
evidence that some brands are taking advantage of
softening rents to lock in the rentals and longer lease terms
than previously as they position for future growth.
Landlords are obliging especially as they look to secure
reputable anchor tenants which help add value to a
development and attract repeat footfall. Nonetheless,
there are some international retailers scaling back their
presence, or withdrawing altogether from the Singapore
market, and so landlords are focusing on active
management in a bid to retain tenants.

ASIA PAFICIC KEY FACTS

MOST EXPENSIVE RETAIL LOCATION
Causeway Bay, Hong Kong:
US$2,878/sq ft/yr
€27,884/ sq m/yr

MOST AFFORDABLE RETAIL LOCATION
Raj Bhavan/Somajiguda, Hyderabad, India
US$16.00/sq ft/yr
TRADITIONAL BRICKS AND MORTAR RETAILERS IN
CHINA ARE FACING STIFF COMPETITION FROM THE
GROWING E-COMMERCE MARKET AND THE EMERGING
TREND IS TO PARTNER WITH ONLINE-TO-OFFLINE
PLATFORMS IN AN ATTEMPT TO CAPTURE THESE
CHANGING TRENDS IN CONSUMER BEHAVIOUR.

€155/sq m/yr

In parallel, both retailers and landlords are raising the bar
on the experience offered to consumers by expanding the
F&B and leisure offerings – Muji’s Shanghai store includes a
café and bookstore and Innisfree’s unit on the Nanjing East
Road has a café. Shanghai also saw the opening of
Disneyland in June 2016 in the Pudong district with
retailers looking to capitalise on the anticipated 17 million
visitors a year. In Beijing and Guangzhou landlords of
dominant schemes are broadening their tenant mix and
increasing the proportion of lifestyle space to attract a
wider customer base and increase sales volumes. The retail
sector is also tracking the decentralisation trend that is
being seen in the residential and office sectors and will
continue to look for opportunities in these areas where
they have more options and leverage to negotiate with
landlords for flexible leases.

+28%

Due to the appreciation of the U.S. dollar and
corresponding price adjustment of products in overseas
markets, the price difference between China and other
markets has narrowed, driving more and more demand
back to China.

STRONGEST RENTAL GROWTH
Marathahalli Junction, Bengaluru, India

BIGGEST RENTAL DECLINE
Mongkok, Hong Kong

-17%
PROPORTION OF RENTAL
GROWTH TYPES IN ASIA PACIFIC
Declining
10%

Growing
15%

Stable
75%

This is reflected in the expansion of affordable luxury
brands such as Sandro, Maje, Gentle Monster and Louis
Quatorze as well as new market entrants such as Superdry
and Victoria’s Secret. Core areas are favoured for new
entrants who are willing to pay a premium to secure the
footfall in these areas.

SHANGHAI, CHINA
21

A Cushman & Wakefield Research Publication

DELHI, INDIA

STRONG DEMAND IN AREAS IN
DELHI SUCH AS CONNAUGHT
PLACE, KHAN MARKET AND
GALLERIA (GURGAON) ARE
EXPECTED TO SEE RENTAL
UPLIFTS OVER THE YEAR DUE
TO LIMITED QUALITY SPACE
AGAINST RISING DEMAND FROM
CINEMAS, F&B OPERATORS AND
FASHION RETAILERS.
Strategy and site location is critical as while H&M and Cath
Kidston successfully opened units, KFC and Costa Coffee
are reducing their exposure and vacating some units.
Bengaluru is witnessing demand from retailers as the new
commercial and residential developments along BEL Road,
North Bengaluru and Sarjapur Road are creating
expansion opportunity for retailers. Main street locations in
close proximity to luxury malls such as Lavelle Road and
UBL Road are registering more enquires due to the lack of
availability in the malls and is likely to result in positive
rental growth of between 5% to 10% in the next 12 months
as the imbalance between supply and demand falls further
to favour landlords. In Hyderabad the retail scene is
dominated by fashion brands with the likes of Zara and
H&M entering the market over the last twelve months. The
luxury retail market is less developed with demand largely
driven by the automobile sector and includes Rolls Royce,
Bentley, Porsche and Jaguar all who have opened
showrooms in the city. Despite limited availability of
suitable spaces, the main streets of Linking Road and Fort
in Mumbai continue to witness strong demand, especially
from apparel retailers, whereas Bandra-Kurla Complex
(BKC) is seeing heightened activity from F&B operators.
Demand from apparel retailers is likely to remain buoyant
as international apparel brands continue to venture into the
main streets of Mumbai in the coming months.
The continued rise of e-commerce is changing the retail
scene across India as witnessed by the recent wave of
online retailers opening physical stores and establishing a
presence on the main retail streets. Hybrid stores offering
the opportunity to shop online coupled with experience
zones in malls and main streets, are expected to emerge
strongly. These will have a large proportion of F&B aimed
at enhancing the consumer experience.

22

ONLINE
RETAILERS
OPENING
PHYSICAL
STORES

AND ESTABLISHING
A PRESENCE ON
THE MAIN RETAIL
STREETS

JAKARTA,
INDONESIA

INDONESIA’S RETAIL MARKET APPROACHES 2017 IN
GOOD HEALTH AND WITH DEMAND OUTWEIGHING
SUPPLY, POSITIVE RENTAL GROWTH WILL BE A
CHARACTERISTIC AS COMPETITION FOR WELL-PLACED
UNITS INTENSIFIES DESPITE THE RISE OF E-COMMERCE
AS A CONSUMER CHANNEL FOR PURCHASING HIGH
STREET FASHION.
Jakarta is the main retail destination and often considered
as a target for incoming international brands looking to
establish a foothold in the Asian retail scene with fashion
retailers H&M, Uniqlo and Zara as well as Bvlgari and
Alexander McQueen, amongst others, opening their doors
in 2016. Lifestyle centres remain popular and the schemes
currently being developed are providing premium brands
in particular, with much needed expansion opportunities as
options dry up elsewhere. Demand will intensify in such
schemes especially as the moratorium on the development
of ‘one-stop’ shopping centres remains in place but premiums
will need to be paid given the lack of available units.

MALAYSIAN
RETAIL CHAIN
ASSOCIATION

REQUESTED THAT THE
GOVERNMENT
TEMPORARILY FREEZE
THE ISSUANCE OF
DEVELOPMENT
LICENCES FOR NEW
SCHEMES

MAIN RETAIL
DESTINATION

FOR INCOMING
INTERNATIONAL
BRANDS

THE MALAYSIAN RETAIL SCENE IS NOT WITHOUT ITS
CHALLENGES – THE MALAYSIAN RETAIL CHAIN
ASSOCIATION (MRCA) REQUESTED THAT THE
GOVERNMENT TEMPORARILY FREEZE THE ISSUANCE
OF DEVELOPMENT LICENCES FOR NEW SCHEMES IN A
BID TO CURB THE OVERSUPPLY OF RETAIL SPACE
WHICH IS NEGATIVELY IMPACTING RENTAL GROWTH
POTENTIAL AND PUTTING FURTHER STRAIN ON
RETAILERS WHO ARE FACING PRESSURE ON MARGINS
AND HIGHER OVERHEAD COSTS AS THE ECONOMY
SLOWS AND THE RINGGIT WEAKENS. This, combined
with the introduction in 2015 of the Goods and Sales Tax,
will continue to weigh on consumer demand, but a
strengthening in household income and a robust labour
market will act as counterbalances and promote the
expansion of the retail sector, although progress will be
slow.
Retailers have a mixed opinion, with Old Navy opening its
first unit in Petaling Jaya in September 2016 and the likes
of Desigual, Hamleys and Halston all entering the market
too. Some retailers have been forced to close, others
postponing their opening dates and some smaller brands
repositioning their offering in a bid to survive the tough
current market conditions. There were no high profile
retailers exiting the Malaysian retail scene and as
consumers look for a broader retail experience, F&B
operators have performed very well. However, as more
stock is released, dominant schemes are likely to have their
noses ahead and will attract tenants away from those
schemes less actively managed and large regional malls
are likely to benefit while those neighbouring malls will feel
the pressure as tenants vacate.

23

A Cushman & Wakefield Research Publication

RENTAL GROWTH HAS BEEN
STRONG OVER THE PAST

12 MONTHS

INTERNATIONAL BRANDS ARE MAKING A RESURGENCE
IN THE NEW ZEALAND RETAIL MARKET, WITH
PRECINCTS IN AUCKLAND SUCH AS LOWER QUEEN
STREETS AND BRITOMART/CUSTOM HOUSE, THE MOST
SOUGHT AFTER DESTINATIONS. Active requirements
from the likes of H&M, Zara, Tiffany & Co and Chanel are
exerting upward pressure on rental levels particularly for
units along major thoroughfares and in dominant retail
schemes. While online shopping levels continue to rise, it
appears that this has taken little away from retail sales in
key markets and along prime pitches where rental growth
has been strong over the past 12 months. Of note is the rise
in the number of smaller F&B operators capturing the
increasingly popular coffee culture while perusing for
purchases. The expansion of a number of regional and
neighbourhood malls is currently underway or planned for
the near future in response to Auckland in particular,
seeing an increase in luxury brands taking space within
prime precincts, driven partly by increased cruise ship
patronage, the wealth effect from increasing residential
property prices and increases in retail spending.

AUCKLAND, NEW ZEALAND

INTERNATIONAL BRANDS CONTINUE TO DRIVE THE
PHILIPPINE RETAIL SECTOR, SUPPORTED BY THE RISING
DISPOSABLE INCOME OF A GROWING MIDDLE CLASS
POPULATION. Global mid-tier brands accounted for a
significant volume of leasing activity in recent quarters. In
particular, fast fashion retailers and F&B operators are
leading the growth of the segment as brands such as
Uniqlo and H&M continue to aggressively expand their
footprints within and outside Metro Manila. Meanwhile, the
luxury segment experienced a slowdown as lower than
expected sales volumes in existing stores led to upscale
brands re-evaluating expansion plans. Tightening
competition have led to mall developers focusing on
securing new retail concepts as a way to draw market
share. There is also a shift in the tenant mix where mall
operators are increasing the share of F&B in their retail
developments.

24

Retailers such as Lotte and Shinsegae Group are
aggressively investing to capitalise on this trend and other
brands will be in hot pursuit. This large scale shift has seen
showrooms come to the fore as consumers prefer to
examine a product in a bricks and mortar shop before
purchasing online. Demand for shop units however is still
strong, supported by the inflow of Chinese tourists which
has seen the main shopping area expand from
Myeongdong and Gangnam Station to Garosu-gil and
Hongdae where rents have been rising.
SEOUL, SOUTH KOREA

OMNI-CHANNEL RETAILING IS RAPIDLY GAINING
MOMENTUM IN THE SOUTH KOREAN RETAIL MARKET AS
CONSUMERS DEMAND A SHOPPING EXPERIENCE
ALLOWING THEM TO SHOP ANYWHERE AT ANY TIME,
AND BRANDS NEED TO PROVIDE A SEAMLESS
EXPERIENCE IN RETURN.

SOUTH KOREA IS ALSO BECOMING

AN ASIAN TEST BED

Global brands are opening exclusive stores, underpinned
by robust performance – Lardini, imported by Shinsegae
International, recently opened, as did Christopher Kane.
South Korea is also becoming an Asian test bed for luxury
watches with Roger Dubuis choosing South Korea as their
entry point to the region. The mass market is presenting
more of a mixed picture with some brands struggling with
softening demand, in a saturated market, and a weakening
in economic conditions with some retailers consolidating
or exiting the market to preserve profit. For example,
Forever 21 closed their Garosugil store and Canadian
JoeFresh, which opened in 2014 has exited. Meanwhile,
Uniqlo's operation is performing well, Shake Shack Burger,
a premium burger franchise from New York City, opened
its first store near Gangnam Station and plans to open a
further 25 outlets across the country by 2025, British
pharmacy chain, Boots, is planning to enter with Emart,
one of the largest retailers in South Korea in 2017.

FOR LUXURY WATCHES

25

IN TAIWAN, THE LINES BETWEEN RETAILER ON AND
OFFLINE PRESENCE ARE BECOMING MORE BLURRED AS
SOME VIRTUAL RETAILERS LOOK TO ROLL OUT A
PHYSICAL PRESENCE ONCE AN ONLINE REPUTATION
HAS BEEN ESTABLISHED, AND SOME LUXURY AND HIGH
STREET BRANDS LOOK TO INCREASE THEIR SALES
VOLUMES BY SETTING UP AN ONLINE PLATFORM.
The consumer experience remains a vital part of any
strategy, exemplified by Apple's recent decision to
establish a physical unit in Taipei, which aims to provide an
experience rather than simply a place to shop, and prolong
shopper dwell time. The fast-fashion segment is
increasingly competitive due to rapid expansion. Over the
past 12 months, a number of brands have exited the market
such as LUSH and Laduree, while other brands are opening
units such as Forever 21, MIXXO, SPAO, and Bershka, as
well as some F&B operators.
With retailers hit by lower consumer spending, the main
retail hub, Zhongxiao, has seen a decline in standard
leases, resulting in an increase in unstable short term
leases. As such pop-up shops have emerged to fill in the
vacancy caused by the fall of standard leases. To secure
long-term income streams landlords are willing to readjust
their expectations and lower asking rents. In spite of the
slight drop in rents, the vacancy rate is still high, and the
expectation is for a continued decline in rental rates in
Zhongxiao Retail Hub.

TAIPEI, TAIWAN
26

PRIME RETAIL IN THAILAND’S CAPITAL BANGKOK
CONTINUES TO PERFORM WELL AND NEW SHOPPING
CENTRES HAVE OPENED THEIR DOORS FOCUSING ON
THE LUXURY END OF THE MARKET WHICH IS
SUPPORTED BY ROBUST DEMAND FROM TOURISTS,
PARTICULARLY THOSE FROM CHINA AND JAPANESE
EXPATS, ESPECIALLY IN THE PHROM PHONG AREA,
WHERE THE EMPORIUM, THE EMQUATIER, AND THE
EMSPHERE (FUTURE DEVELOPMENT) ARE ALL LOCATED.
With demand rising, and supply unable to keep up, the
market is leaning more towards landlords with rents
coming under increasing upward pressure. Indeed, the
majority of luxury operators have secured space in prime
locations with long leases and advance payments in place
in order to do so. Developers are beginning to look away
from the city centre for areas of untapped opportunity and
this will be tested with the opening in the next two years of
a new shopping mall by the Chaopraya River. The centre is
surrounded by 5-star hotels and luxury residential
developments, which the developer claims will be a new
chapter in the Thai shopping experience. F&B operators
are likely to feature highly as consumers increasingly look
for an experience when shopping and not simply a buyand-out operation. This is rising up the ranks of importance
as online sales increase – anticipated to rise by 15%-20% in
2016 over 2015 according to research carried out by
Kasikorn, and brands focusing on a physical presence alone
are likely to see their sales volumes come under pressure.

AFFORDABLE, MID-RANGE RETAILERS ARE GAINING
MARKET SHARE IN THE VIETNAMESE RETAIL SCENE AS
LUXURY BRANDS CONTINUE TO REVIEW THEIR
EXPANSION STRATEGIES AND LOOK TO MAXIMISE
SALES GROWTH BY CONSOLIDATING THEIR
FOOTPRINTS INTO A SOLID NETWORK OF STORES IN
HIGH-QUALITY LOCATIONS, AS OPPOSED TO OPENING
MANY SMALL STORES IN A RAPID SUCCESSION.
For example, the Korean eco-cosmetics brand Innisfree has
officially launched in Vietnam, with the first store opening
on the edge of Ho Chi Minh City’s CBD. Interest is strong
for flagship units on prime high streets with high footfall
which has seen rents rise by 11.1% in Ho Ci Minh City, as
interest in department stores wanes, although a large
proportion of this stems from the more affordable
operators. Conversely, despite the closure of a number of
lower-end schemes, countered with new schemes opening
this will dampen rental growth prospects in the shopping
centre sector. In addition, similar to a number of other
markets in the Asia Pacific region, the share of the market
accounted for by e-commerce is increasing as is the
experience that consumers are looking for and this is
reflected in a rising share of F&B and entertainment in
shopping centres as landlords seek to extend consumer
dwell time.

BANGKOK, THAILAND
27

AMERICAS
OVERVIEW
“Throughout 2016 the America’s region has benefited
from stable consumer spending that has been
sustained by steady employment and lower energy
prices. This is an enduring trend from 2015 that we
forecast to continue into 2017. The larger question for
2017 and beyond, will be the unrelenting rebalancing
of sales origination; bricks and mortar versus
e-commerce. The urban retail sector will continue
to benefit from global brands seeking tangible
connections with the consumer while the pressure
will build upon enclosed malls and open air shopping
centers to continually enhance their shopping
experience and differentiate their market positions
to maintain competitiveness in the continuous
advancement of the “bricks and clicks” model.”
GENE SPIEGELMAN
Vice Chairman
Head of Retail Services
North America

NEW YORK CITY, USA
28

NEW YORK’S (UPPER) 5TH
AVENUE REMAINS AT THE TOP
OF THE GLOBAL RANKING OF
MAIN STREETS DESPITE A FALL
IN HEADLINE RENTS ACROSS
THE 12 MONTHS TO JUNE 2016.
THIS MARKS THE FIRST TIME
THAT MANHATTAN RETAIL
RENTS HAVE MOVED
BACKWARDS IN THE POSTRECESSION ERA AND THE
TREND IS NOT OVER.

Publicly traded apparel chains remain under immense
pressure from Wall Street to trim the fat and this means
closing underperforming stores, cutting overheads and
improving margins. This trend has particularly affected the
high street and mall sectors in the U.S. and it will continue
heading into 2017. Also noted is slowing demand from
global brands looking for flagship space in New York; the
few new entrants that there have been are extremely
cautious in their site selection process. Meanwhile, many
owners have yet to alter their leasing strategies despite the
obvious shift in market conditions. The result has been that
deal negotiations can be very lengthy. But if deal activity
has fallen for apparel and luxury retailers, it remains fairly
robust for food or service related retail concepts.
Restaurants (ranging from fast casual to white tablecloth),
food halls and health clubs are all in growth mode.
Meanwhile, although deal activity and asking rents have
been declining on Manhattan’s traditional high street retail
markets, there is still strong activity in many submarkets
not historically known as retail hot spots. The Financial
District, Meatpacking District, the Lower East Side are
just a few of the up-and-coming markets where strong
residential growth is now being followed by retail
expansion.
Despite the somewhat sluggish leasing market, Manhattan
will be able to bear the current market challenges thanks to
its robust underlying fundamentals. There is no market in
the U.S. that offers the same density, income
demographics or tourism spend. However, the next couple
of years will be a time of retail retrenchment and
reinvention in the U.S. and those challenges will be felt
even here.

29

A Cushman & Wakefield Research Publication

MOST EXPENSIVE LOCATIONS BY CITY – AMERICAS
2016 2015 TOWN
1

US$/SQ FT/YR €/SQ M/YR US$/SQ FT/YR €/SQ.M/YR
2016 RENT 2016 RENT
2015 RENT 2015 RENT

COUNTRY DISTRICT

1

New York

USA

Upper 5th Avenue (49th - 60th Sts)

3,000

29,065

3,500

33,812

2

2

Los Angeles

USA

Rodeo Drive (Beverly Hills)

800

7,751

800

7,729

3

3

San Francisco

USA

Union Square

685

6,637

650

6,279

4

4

Chicago

USA

North Michigan Avenue

550

5,329

525

5,072

5

5

Miami

USA

Lincoln Road

325

3,149

325

3,140

6

6

Toronto

Canada

Bloor Street

250

2,425

260

2,515

7

7

Washington DC USA

Penn Quarter

205

1,986

220

2,125

8

8

Vancouver

Canada

Robson Street

166

1,604

176

1,702

9

9

Palm Beach

USA

Worth Avenue

150

1,453

150

1,449

10

9

Boston

USA

Newbury Street

150

1,453

150

1,449

11

12

Montreal

Canada

Saint-Catherine W - Street Level

139

1,343

144

1,393

12

11

Philadelphia

USA

Walnut Street

135

1,308

145

1,401

13

13

Rio de Janeiro

Brazil

Garcia D'avilla (Ipanema)

113

1,096

117

1,127

14

15

Bogota

Colombia

Zona T - 82 Calle

100

972

100

969

15

14

Mexico City

Mexico

Masaryk

100

972

103

991

16

16

San Diego

USA

Del Mar Heights Blvd
(Suburban Del Mar Heights)

78

756

78

754

17

18

Seattle

USA

CBD/Core

75

727

70

676

18

17

São Paulo

Brazil

Oscar Freire Jardins

73

708

75

728

19

19

Monterrey

Mexico

Calzada del Valle

57

551

61

592

20

20

Lima

Peru

San Isidro

40

389

47

452

THERE HAVE BEEN A NUMBER
OF TRENDS DRIVING RETAIL
GROWTH IN CHICAGO OVER
THE PAST YEAR BUT PERHAPS
THE BIGGEST HAS BEEN THE
EMERGENCE OF A NUMBER OF
NEW NEIGHBOURHOODS LIKE
THE FULTON MARKET DISTRICT
AND LOGAN SQUARE.

30

Both of these districts have redefined themselves over the
last couple of years – in the Fulton Market neighbourhood
once vacant industrial properties have become lofts while
Logan Square’s historic homes have helped to lure a new
generation of residents to a neighbourhood that previously
had its issues with crime. These up-and-coming areas have
become hotbeds of leasing activity with restaurants
leading the charge. These trade areas have also proven to
be popular with many clicks to bricks concepts. Among the
formerly pure play e-commerce retailers that have recently
opened bricks-and-mortar store locations in the Windy
City are Bonobos, Warby Parker. Untuckit, Bucketfeet and
Marine Layer.
Chicago’s tourism numbers continue to rise; the city was
host to more than 50 million visitors in 2015. This most
directly benefits Chicago’s premier high street market, the
Gold Coast, but it positively impacts dozens of trade areas
ranging from the Loop to Wrigleyville. Versace recently
opened a new store in the Gold Coast, while Gucci and
Louis Vuitton both expanded and renovated their facades
on the north end of the Magnificent Mile. While luxury
players have been active on Chicago’s high streets, there
has also been a fair amount of activity from independent or
boutique apparel retailers expanding in outlying urban
neighbourhoods like Lakeview’s Southport Corridor,
Lincoln Park’s Clybourn Corridor, Bucktown/Wicker Park
and the Armitage area. Fast casual and full service
restaurants are expanding in all Chicago submarkets, but
there has been an explosion of these concepts in the Loop
and West Loop/Fulton Market.

RENTS HAVE BEEN ON
THE RISE IN THE SEATTLE
MARKETPLACE, PARTICULARLY
IN THE URBAN CORE.

Despite an increasingly challenged retail landscape, the
shortage of quality product available in the CBD retail
markets Downtown, Pioneer Square, Capitol Hill,
Belltown, Lake Union and other central trade areas has
translated into 7.1% rent growth in the year ending Q2 2016.
The fact is that activity in Downtown Seattle remains
overwhelmingly driven by restaurant and retail service
related concepts. Thus, the recent trend of closures that
has been affecting apparel and department store chains
has had little impact on that marketplace. In fact, it has had
little impact on Downtown’s premier mall, Pacific Place,
either. This is because most of those closures are playing
out in Class B or C shopping centres, or in malls situated in
secondary or tertiary markets. Seattle has been insulated
against that trend thanks both to its continued strong local
economic performance and the fact that there has been
little in the way of new retail development in the urban
core over the past few years.

DOWNTOWN SEATTLE REMAINS
OVERWHELMINGLY DRIVEN BY

RESTAURANT AND RETAIL
SERVICE RELATED CONCEPTS
Perhaps the most notable opening of the past year was the
launch of Amazon Books in University Village. This 7,400
sq ft location was the first in Amazon’s rollout of its new
physical bookstore concept. Amazon plans to add more
bookstores nationally, most of which will also be in smaller
urban locations situated near major schools or universities.
Additionally, the e-commerce giant reportedly plans to
open roughly 20 grocery/convenience stores nationally in
the next year, with the Seattle market likely to again serve
as a launching point.

SEATTLE, USA
31

A Cushman & Wakefield Research Publication

AMERICAS KEY FACTS

MOST EXPENSIVE RETAIL LOCATION
New York’s Upper 5th Avenue
(49th-60th Sts), USA
US$3,000/sq ft/yr
€29,065/ sq m/yr

MOST AFFORDABLE RETAIL LOCATION
Ottawa’s Wellington Street, Canada
US$30.80/sq ft/yr
€298/sq m/yr

STRONGEST RENTAL GROWTH

PHILADELPHIA IS UNIQUE IN THAT
IT HAS TWO DIAMETRICALLY
OPPOSED HIGH STREET
DISTRICTS. THERE IS THE CLASSIC
URBAN HIGH STREET EXPERIENCE
ON WALNUT STREET IN
DOWNTOWN PHILADELPHIA.

Edmonton’s Whyte Avenue, Canada

+16%
BIGGEST RENTAL DECLINE
Lima’s San Isidro, Peru

-14%
PROPORTION OF RENTAL
GROWTH TYPES IN EMEA

Then there is the classic suburban high street mall
experience offered by the King of Prussia Mall and is roughly
a 20 minute drive from Philadelphia’s urban core and, at just
under 2.5 million sq ft, is one of the largest shopping centres
in the world. In the U.S. only the Mall of America
(Bloomington, MN), South Coast Plaza (Costa Mesa, CA)
and Del Amo Fashion Center (Torrance, CA) are larger.
While the overall trend for retail in the U.S. has been urban
over suburban, and for the consolidation of many mallbased tenants, this simply is not happening in Philadelphia.
The King of Prussia Mall, with sales estimated at USD 805/
sq ft, opened a 155,000 sq ft expansion this summer that
was completely occupied upon its delivery. Meanwhile,
Walnut Street has seen sluggish activity as of late with a
number of lingering vacancies. The luxury sector, on the
whole, has seen marginal growth and somewhat sluggish
demand outside of King of Prussia Mall. In Philadelphia’s
urban marketplace, closures from upscale chains have
mostly been backfilled by lower price point retailers in
growth mode like Under Armor, although rents have
generally held firm. Food is still the hottest sector of the
market with many restaurant concepts looking to expand
in virtually every Philadelphia submarket, but urban
demand is particularly strong from everything from fast
casual chains to upscale eateries.
32

Declining
21%
Growing
5%

PHILADELPHIA, USA

Stable
74%

SINCE 2010, THE BAY AREA’S
BOOMING TECH ECONOMY HAS
PLACED THIS REGION AT THE TOP
OF MOST RETAILER EXPANSION
LISTS AND SAN FRANCISCO HAS
BEEN THE EPICENTRE.

As a result, San Francisco’s retail vacancy has remained
among the lowest in the nation and rents have spent most
of the last six years on a sharp upward trajectory. That said,
San Francisco’s restrictive anti-chain store law has meant
that most retailers have had to seek exclusions from the City
Council, a process that has often been time intensive and
expensive. With vacancy levels below the 5.0% mark, the
city could do this. That is all about to change.
Buoyed by massive new multifamily development, a number
of new retail trade areas are emerging in the city by the Bay.
Foremost among them is the Mid-Market area, which is
directly adjacent to Union Square. Historically, Union Square
has been one of the city’s major tourist destinations and the
focal point of luxury retail brands. The cheaper retail rents of
the Mid-Market area are increasingly posing competitive
issues for Union Square landlords. Meanwhile, Macy’s (which
operated two major department stores in Union Square) has
announced plans to consolidate to their larger location at 170
O’Farrell Street, returning a large block of space to market.
Although demand has remained steady in Union Square over
the past year, occupancy gains have been largely mitigated
by a few shop closures. In May 2016, Apple relocated its
flagship store to a site on Union Square. Much of the activity
of the past year has been driven by relocations or expansions
which simply have not translated into real growth.

A NUMBER OF NEW RETAIL
TRADE AREAS ARE EMERGING IN

THE CITY BY THE BAY

One market where considerable growth is being seen is the
emerging Jackson Square neighbourhood. This submarket
has succeeded in luring cool new millennial-focused concepts
as well as some luxury retailers due to its competitive rents,
historic flavour and zoning advantages (most of it is exempt
from San Francisco’s chain store law). Among the tenants that
have inked deals here are Isabel Marant, Jake, Shinola, Filson,
A.P.C., Guideboat and future Republic of Ritz Hansen. Rents
here will continue to increase thanks to continued strong
demand and very little supply. Unfortunately, for landlords,
this probably won’t be the case elsewhere.
Looking forward, vacancy in the Union Square market will
increase considerably when the Macy’s space hits the market.
Citywide vacancy will also climb with the 2017 delivery of a
new 250,000 sq ft retail project in the Mid-Market area.
Look for rents to flatten in 2017, though they will only move
backwards in a few trade areas. In the meantime, investors
will continue to pursue and pay top dollar for premier
San Francisco sites despite these challenges.

SAN FRANCISCO, USA

33

LOS ANGELES, USA

WITH STRONG RENTS, LOW VACANCIES, HIGH-INCOME
DEMOGRAPHICS, AND A HOTSPOT FOR TOURIST
ACTIVITY, RODEO DRIVE IN LOS ANGELES IS STILL THE
LEADING DESTINATION FOR LUXURY SHOPPING.

IN WASHINGTON NICHE RETAIL IS RISING IN
POPULARITY, AND CONSUMER DEMAND FOR NEW AND
EXCITING CONCEPTS PUSH THE BOUNDARIES OF
TRADITIONAL RETAIL CORRIDORS. THE ESTABLISHMENT
OF THE 14TH STREET CORRIDOR AND THE EMERGENCE
OF THE SHAW NEIGHBOURHOOD AS RETAIL
DESTINATIONS IN THE LAST FEW YEARS HAS
CONTINUED TO PROGRESS.
Chef-driven concepts have become the norm, as have
hybrids between apparel and restaurant retail. The rise of
waterfront retail with the development of The Wharf and
Capitol Riverfront have also introduced new retail markets
to the city, and drawn new entrants and established
restaurateurs to these emerging markets. Restaurants
continue to account for roughly 75% of the retail deals that
are being seen, with nearly every category in growth mode
from fast food to food halls.
Looking ahead, advances in technology will shape the
consumer experience of retail as well as drive the way
people shop. Pop-ups, which are becoming increasing
popular, are likely to increase in number. The District’s lack
of quality urban retail supply will continue to support this
trend going forward. The limited new urban projects that
have come online have generally leased up quickly at
higher rents. That said, demand has started to cool and it is
anticipated that the aggressive rental rate growth of the
past few years will cool significantly heading into 2017.

RESTAURANTS
continue to account for roughly

75%

OF THE RETAIL DEALS THAT ARE BEING SEEN

34

The trend here has been to renovate existing stores while
debuting new flagship stores with the goal of maintaining
the Rodeo brand of luxury and target the newer millennial
audience. With high foot traffic and tourist popularity,
Third Street Promenade is a premier entertainment and
shopping area with mass retailers. It will continue to grow
with the new Expo Light Rail Line that opened in May 2016
and these factors will keep the rental rates high for the
foreseeable future. Meanwhile, Westfield continues to
move forward on a major revamp of its Century City mall.
This Bloomingdale’s-anchored project is adding a new
anchor tenant, a 70,000 sq ft Eataly.
The increasing popularity of e-commerce shapes the retail
sector by retailers consolidating stores, adapting the click
and collect trend, and creating shopping as an interactive
experience. Retailers are slowly participating in the Virtual
Reality (VR) trend as they look to differentiate themselves
by creating a new attraction for people to come into their
stores. The Verizon Store on Third Street Promenade
recently released a VR stimulation of playing in a NFL
game and Samsung and Apple are doing the same and
provide an interactive experience to their consumers. VR is
slowly starting to trend with retails to entice people to
come into the store. There is no doubt that the acceleration
of e-commerce has created significant challenges for the
retail marketplace; some categories like department stores
and apparel are in contraction mode while others are
simply flat in terms of growth. However, concepts
embracing experiential retail are the ones that are thriving.
That said, the occupancy growth that is currently being
seen in Los Angeles is still mostly coming from food
concepts ranging from grocery to restaurants.

SPENDING HABITS IN THE CANADIAN RETAIL MARKET
ARE SHIFTING WITH DIVERGENCE INTENSIFYING-THE
MORE AFFORDABLE FAST FASHION MARKET
INCLUDING INTERNATIONAL RETAILERS SUCH AS ZARA,
H&M AND FOREVER 21 ATTRACTING MORE CONSUMERS
AS IS THE LUXURY RETAIL SEGMENT.
This is impacting mid-market retailers such as Jacob,
Smart Set, Laura, and Danier Leather who are struggling to
reposition themselves. The last 12 months has seen an
influx of high-end retailers such as Saks Fifth Avenue and
Nordstrom, with landlords renovating and/or expanding
tier 1 schemes to accommodate these tenants and remain
competitive. This is hurting the low to mid end schemes in
smaller city centres which are already feeling the departure
of Target.
It’s fair to say that Canadian retailers as a whole are lacking
in their online presence with bricks and mortar still a
significant part of the retail scene. Demand is strong across
the board for well trodden units along main streets such as
Robson Street in Vancouver and Bloor Street in Toronto,
and there are no signs of this slowing down. Retailers are
actively renewing their leases, often negotiating long
leases so as to tie in current rental levels before the
anticipated upswing filters through. This is not to say that
things aren’t changing – with consumers very much in the
driving seat as online shopping has provided them
unlimited choices on where to spend their money – some
retailers are adapting to the shifting sands and developing
omnichannel platforms. Creativity and experiential
experiences for customers are the differentiator for bricks
and mortar retailers with the development of lifestyle
centres rising as more consumers demand it.

THE LACK OF SPACE IN THE LARGER CITIES,
PARTICULARLY MEXICO CITY, COMBINED WITH
HEALTHY DEMAND HAS SUSTAINED STABLE PRICES.
Stronger demand for central, well connected locations is
accelerating the renewal of retail in traditional
neighbourhoods, like Colonia Roma, and of converted
industrial land in the Granada, Vallejo, and Tlalnepantla
districts, among others – this is happening on a scale not
seen in the capital before. Developers are also enhancing
and expanding their shopping centres (e.g Antara, Parque
Delta, and Perisur in Mexico City) to accommodate more
tenants. Furthermore, the scarcity of development land is
seeing a significant increase in land prices particularly as
demand from trendy restaurants, bars and fashion
boutiques is escalating. The main luxury street in Mexico
City, Masaryk Avenue, recently underwent a major
renovation plan but it remains to be seen what the impact
of this renewal on the number and profile of its visitors will
be. The rising level of consumer spending from the growing
middle-class will also support the continued expansion of
the retail offer and the entry of new international retailers.
However, it is interesting to observe that the entry of
big-name international brands is not always well received
in the more traditional city locations. The impact of
e-commerce is only now starting to be felt in Mexico on a
scale where retailers are now reacting, for example, local
retailer Liverpool, are enhancing their e-commerce
capabilities in order to compete with big players now
entering the market, such as Amazon.
TORONTO, CANADA
35

A Cushman & Wakefield Research Publication

2017 SHOULD MARK THE BEGINNING OF A TURNING
POINT FOR THE BRAZILIAN RETAIL SECTOR.
The last 12-24 months have been clouded by political
instability, negative GDP growth and rising unemployment,
all of which have negatively impacted the retail market
with retail sales falling. Along the main shopping streets in
Brazil such as Garcia D’Ávilla in Rio de Janeiro there are
however signs of expansion beyond the traditional
boundaries into adjacent streets but this has not translated
into rental rises just yet. Along Oscar Freire Jardins in São
Paulo, there has been a high turnover with multiple
retailers moving to locate in shopping centres. High streets
rents have been relatively stable but with demand waning,
levels are supported by incentive packages as landlords try
to limit void periods and protect income streams, placing
greater control in the hands of the retailers when
negotiating lease terms.
In turn, 2017 should be a rebound year for the sector but
change will be subtle with consumer confidence seeing
signs of improvement since Michel Temer assumed the
presidency in mid May following the impeachment vote in
the Senate to remove Dilma Rousseff. GDP will turn
positive following two consecutive years of recession,
leading to a fall in the unemployment rate will which will
cause wages and prices to stabilise and so consumer’s
trust will make a comeback as will retail sales. This process
will have a direct impact on retailers who, if well positioned
in the post-crisis period, should reap the future rewards of
the investments made in the present.

THE PERUVIAN RETAIL MARKET HAS BEEN GROWING
AND WHILE FOCUS IS ON LIMA, THERE IS ACTIVITY
ACROSS THE COUNTRY.
This has not been reflected however along the San Isidro
and Otros high streets in the capital where rents have
actually declined over the 12 months to June as consumers
prefer the dominant shopping centres that offer both retail
brands and leisure operators all under one roof. Economic
stability, compared to other countries in the region, better
access to consumer credit and infrastructure
improvements have all supported the growth of the retail
sector and the entry of new international brands. The
construction of new shopping centres continues apace and
with this comes the wider spread of retailers and
potentially increased competition which is good news for
consumers as brands will need to work hard to maintain
sales volumes, with many establishing and/or growing their
online presence.
Luxury brands have only really begun to make an
appearance in Peru over the last few years. Chanel, Armani,
Carolina Herrera, Coach and Tous have all opened units
displaying a definite preference for shopping centres over
high streets. Owners are going some way to attract more
luxury brands with Jockey Plaza for example, creating a
dedicated luxury brand, high profile area in the centre.

36

RIO DE JANEIRO, BRAZIL

LUXURY
BRANDS

HAVE BEGUN TO MAKE
AN APPEARANCE IN PERU

Photography by: Donatas Dabravolskas

SHOPPING CENTRES DOMINATE THE COLOMBIAN RETAIL
MARKET AS DOMESTIC AND INTERNATIONAL BRANDS
PREFER COVERED CENTRES OVER HIGH STREETS.

STARBUCKS

As international developers become more active in
bringing new shopping centre stock to the market, this will
lead to a rising level of maturity and a more competitive
environment which will benefit consumers in general – it is
also opening up an array of possibilities for retailer
(re)location strategies. However, while retailers will have
more options, this may dampen any potential for rental
growth. Select high streets are seeing somewhat of a
resurgence with signs of gentrification in Bogota.
Expansion plans are underway with Starbucks for example
announcing the opening of 40 units over the next three
years and Jeronimo Martins which had close to 140 stores
in July, with plans to end the year close to 200, Decathlon
and H&M have announced 2017 openings. With rising
demand expected to lead to positive rental growth, some
retailers are seizing the opportunity to open large units
and taking advantage of the current lower rent levels.

OVER THE NEXT THREE YEARS

OPENING 40 UNITS

37

GLOBAL
RETAIL
RENTS

38

LOCAL
MEASURE

RENT
RENT ANNUAL
JUNE 15 JUNE 16
RG

RENT
US$/SQ
FT/YR
JUNE 16

RENT
END 2017
€/
TREND
SQ M/YR (COMPARED
JUNE 16
TO 2016)

CONTINENT COUNTRY
EUROPE

CITY

LOCATION

Europe

Austria

Vienna

300

300

0.0%

371.6

Austria

Vienna

Karntnerstrasse/
Graben
Mariahilferstrasse

€/ sq m/month

Europe

€/ sq m/month

135

135

0.0%

167.2

1,620

Europe

Austria

Vienna

Kohlmarkt

€/ sq m/month

385

385

0.0%

476.8

4,620

Europe

Austria

Graz

Herrengasse

€/ sq m/month

110

110

0.0%

136.2

1,320

Europe

Austria

Linz

Landstrasse

€/ sq m/month

130

130

0.0%

161.0

1,560

Europe

Austria

Salzburg

Getreidegasse

€/ sq m/month

125

125

0.0%

154.8

1,500

Europe

Austria

Innsbruck

€/ sq m/month

110

110

0.0%

136.2

1,320

Europe

Belgium

Brussels

Maria
Theresienstrasse
Rue Neuve

€/ sq m/year

1,750

1,850

5.7%

190.9

1,850

Europe

Belgium

Brussels

Avenue Louise

€/ sq m/year

1,750

1,775

1.4%

183.2

1,775

Europe

Belgium

Antwerp

Meir

€/ sq m/year

1,750

1,850

5.7%

190.9

1,850

Europe

Belgium

Liege

Vinave d'Ille

€/ sq m/year

1,050

1,125

7.1%

116.1

1,125

Europe

Belgium

Ghent

Veldstraat

€/ sq m/year

1,350

1,375

1.9%

141.9

1,375

Europe

Belgium

Bruges

Steenstraat

€/ sq m/year

1,070

1,100

2.8%

113.5

1,100

Europe

Belgium

Hasselt

Hoogstraat

€/ sq m/year

1,150

1,250

8.7%

129.0

1,250

Europe

Bulgaria

Sofia

Vitosha Blvd

€/ sq m/month

44

46

4.5%

57.0

552

Europe

Bulgaria

Plovdiv

€/ sq m/month

25

27

8.0%

33.4

324

Europe

Bulgaria

Varna

Alexander
Batenburg
Kniaz Boris 1

€/ sq m/month

30

32

6.7%

39.6

384

Europe

Bulgaria

Bourgas

Alexandrovska

€/ sq m/month

25

27

8.0%

33.4

324

Europe

St Helier

King Street

Zone A £/ sq ft/year

120

120

0.0%

85.0

824

St Helier

Queen Street

Zone A £/ sq ft/year

100

100

0.0%

70.8

686

St Peter Port

High Street

Zone A £/ sq ft/year

100

100

0.0%

90.9

881

Europe

Channel
Islands
Channel
Islands
Channel
Islands
Croatia

Zagreb

Ilica Street

€/ sq m/month

70

70

0.0%

86.7

840

Europe

Cyprus

Nicosia

Makarios Ave

€/ sq m/month

18

18

0.0%

22.3

216

Europe

Cyprus

Nicosia

Ledras Street

€/ sq m/month

40

40

0.0%

49.5

480

Europe

Cyprus

Limassol

Anexartisisas Ave

€/ sq m/month

18

18

0.0%

22.3

216

Europe

Prague

Na Příkopě street

€/ sq m/month

190

200

5.3%

247.7

2,400

Prague

Parizska Street

€/ sq m/month

185

195

5.4%

241.5

2,340

Prague

Out of Town

€/ sq m/month

40

40

0.0%

49.5

480

Brno

Svobody Square

€/ sq m/month

70

70

0.0%

86.7

840

Europe

Czech
Republic
Czech
Republic
Czech
Republic
Czech
Republic
Denmark

Copenhagen

Dkr/ sq m/year

18,000

18,500

2.8%

256.6

2,487

Europe

Denmark

Copenhagen

Stroget (including
Vimmelskaftet)
Stroget area

Dkr/ sq m/year

6,500

6,750

3.8%

93.6

907

Europe

Denmark

Copenhagen

Osterbrogade

Dkr/ sq m/year

2,600

2,600

0.0%

36.1

349

Europe

Denmark

Copenhagen

Norrebrogade

Dkr/ sq m/year

1,900

1,900

0.0%

26.4

255

Europe

Denmark

Copenhagen

Kobmagergade

Dkr/ sq m/year

15,000

15,500

3.3%

215.0

2,083

Europe
Europe

Europe
Europe
Europe

3,600

Europe

Denmark

Copenhagen

Lyngby

Dkr/ sq m/year

4,400

4,400

0.0%

61.0

591

Europe

Denmark

Copenhagen

Suburban

Dkr/ sq m/year

1,000

1,000

0.0%

13.9

134

Europe

Denmark

Aarhus

Sondersarde

Dkr/ sq m/year

5,500

5,500

0.0%

76.3

739

Europe

Denmark

Odense

Vestergade

Dkr/ sq m/year

3,600

4,000

11.1%

55.5

538

Europe

Estonia

Tallinn

Viru Street

€/ sq m/month

30

32

6.7%

39.6

384

Europe

Finland

Helsinki

City Centre

€/ sq m/month

130

130

0.0%

161.0

1,560

Europe

Finland

Turku

Yliopistonkatu

€/ sq m/month

65

65

0.0%

80.5

780

Europe

Finland

Tampere

Hämeenkatu

€/ sq m/month

70

70

0.0%

86.7

840

Europe

Finland

Oulu

Kirkkokatu

€/ sq m/month

70

70

0.0%

86.7

840

Europe

France

Paris

Avenue Montaigne

Zone A €/ sq m/year

12,000

13,000

8.3%

988.1

9,573

Europe

France

Paris

18,000

0.0%

1,368.1

13,255

France

Paris

12,000

13,000

8.3%

988.1

9,573

Europe

France

Paris

Avenue des Champs Zone A €/ sq m/year
Élysées
Rue du Faubourg St Zone A €/ sq m/year
Honoré
Rue de Rivoli
Zone A €/ sq m/year

18,000

Europe

Europe

France

Paris

Europe

France

Paris

Europe

France

Paris

Europe

France

Paris

Europe

France

Paris

Europe

France

Lyon

Europe

France

Marseille

3,500

3,500

0.0%

266.0

2,577

Boulevard St
Germain
Boulevard
Hauusman/ Passage
du Harve
Avenue George V/
Rue François 1er
Place Vendôme/Rue
de la Paix
Rue St. Honoré

Zone A €/ sq m/year

6,500

6,500

0.0%

494.0

4,787

Zone A €/ sq m/year

8,000

8,000

0.0%

608.1

5,891

Rue de la
Republique
Rue St Ferreol

Zone A €/ sq m/year

3,500

3,800

8.6%

288.8

2,798

Zone A €/ sq m/year

12,000

12,500

4.2%

950.1

9,205

Zone A €/ sq m/year

12,000

12,500

4.2%

950.1

9,205

Zone A €/ sq m/year

2,400

2,500

4.2%

190.0

1,841

Zone A €/ sq m/year

1,800

1,500

-16.7%

114.0

1,105

39

A Cushman & Wakefield Research Publication

LOCAL
MEASURE

RENT
RENT ANNUAL
JUNE 15 JUNE 16
RG

RENT
US$/SQ
FT/YR
JUNE 16

RENT
END 2017
€/
TREND
SQ M/YR (COMPARED
JUNE 16
TO 2016)

CONTINENT COUNTRY

CITY

LOCATION

Europe

France

Bordeaux

2,200

2,400

9.1%

182.4

1,767

France

Strasbourg

Rue St Catherine/
Port Dijeaux
Place Kleber

Zone A €/ sq m/year

Europe

Zone A €/ sq m/year

2,000

1,800

-10.0%

136.8

1,326

Europe

France

Strasbourg

2,000

1,800

-10.0%

136.8

1,326

France

Lille

Rue des Grandes
Arcades
Rue Neuve

Zone A €/ sq m/year

Europe

Zone A €/ sq m/year

2,000

1,800

-10.0%

136.8

1,326

Europe

France

Toulouse

Zone A €/ sq m/year

2,200

2,200

0.0%

167.2

1,620

Europe

France

Nice

Zone A €/ sq m/year

2,200

2,200

0.0%

167.2

1,620

Europe

France

Nantes

Avenue Alsace
Lorraine
Avenue Jean
Medecin
Rue Crébillon

Zone A €/ sq m/year

1,600

1,600

0.0%

121.6

1,178

Europe

France

Cannes

La Croisette

Zone A €/ sq m/year

8,000

8,000

0.0%

608.1

5,891

Europe

Germany

Berlin

Tauentzienstrasse

€/ sq m/month

305

305

0.0%

377.8

3,660

Europe

Germany

Berlin

Kurfürstendamm

€/ sq m/month

260

265

1.9%

328.2

3,180

Europe

Germany

Berlin

Friedrichstraße

€/ sq m/month

160

160

0.0%

198.2

1,920

Europe

Germany

Frankfurt

Zeil

€/ sq m/month

315

315

0.0%

390.1

3,780

Europe

Germany

Frankfurt

Goethestraße

€/ sq m/month

245

250

2.0%

309.6

3,000

Europe

Germany

Hamburg

Monckebergstrasse

€/ sq m/month

285

290

1.8%

359.2

3,480

Europe

Germany

Hamburg

Spitalerstraße

€/ sq m/month

310

310

0.0%

384.0

3,720

Europe

Germany

Hamburg

Neuer Wall

€/ sq m/month

250

250

0.0%

309.6

3,000

Europe

Germany

Munich

€/ sq m/month

370

370

0.0%

458.3

4,440

Europe

Germany

Munich

Kaufinger/
Neuhauser
Maximilianstraße

€/ sq m/month

285

290

1.8%

359.2

3,480

Europe

Germany

Munich

Theatinerstraße

€/ sq m/month

265

265

0.0%

328.2

3,180

Europe

Germany

Dusseldorf

Konigsallee

€/ sq m/month

275

280

1.8%

346.8

3,360

Europe

Germany

Dusseldorf

Schadowstrasse

€/ sq m/month

265

265

0.0%

328.2

3,180

Europe

Germany

Stuttgart

Konigstrasse

€/ sq m/month

275

280

1.8%

346.8

3,360

Europe

Germany

Stuttgart

Stiftstraße

€/ sq m/month

185

185

0.0%

229.1

2,220

Europe

Germany

Cologne

Schildergasse

€/ sq m/month

295

295

0.0%

365.4

3,540

Europe

Germany

Dortmund

Westenhellweg

€/ sq m/month

225

230

2.2%

284.9

2,760

Europe

Germany

Hannover

Georgstraße

€/ sq m/month

195

195

0.0%

241.5

2,340

Europe

Germany

Münster

Ludgeristraße

€/ sq m/month

165

165

0.0%

204.4

1,980

Europe

Germany

Essen

Kettwiger Strasse

€/ sq m/month

95

95

0.0%

117.7

1,140

Europe

Germany

Essen

Limbecker Strasse

€/ sq m/month

110

110

0.0%

136.2

1,320

Europe

Germany

Leipzig

Petersstrasse

€/ sq m/month

130

130

0.0%

161.0

1,560

Europe

Germany

Dresden

Pragerstrasse

€/ sq m/month

115

115

0.0%

142.4

1,380

Europe

Greece

Athens

Tsakalof

€/ sq m/month

90

90

0.0%

111.5

1,080

Europe

Greece

Athens

Ermou

€/ sq m/month

180

195

8.3%

241.5

2,340

Europe

Greece

Athens

Voukourestiou st.

€/ sq m/month

170

180

5.9%

222.9

2,160

Europe

Greece

Athens

Glyfada – Metaxa

€/ sq m/month

110

115

4.5%

142.4

1,380
1,320

Europe

Greece

Athens

Kiffisia-Kolokotroni

€/ sq m/month

110

110

0.0%

136.2

Europe

Greece

Athens

Piraeus – Sotiros

€/ sq m/month

70

70

0.0%

86.7

840

Europe

Greece

Athens

Chaimanta

€/ sq m/month

80

90

12.5%

111.5

1,080

Europe

Greece

Thessaloniki

50

50

0.0%

61.9

600

Greece

Thessaloniki

Proxevou Koromila
str    
Tsimiski

€/ sq m/month

Europe

€/ sq m/month

125

130

4.0%

161.0

1,560

Europe

Hungary

Budapest

Vaci utca

€/ sq m/month

95

100

5.3%

123.9

1,200

Europe

Hungary

Budapest

Andrassy ut

€/ sq m/month

40

45

12.5%

55.7

540

Europe

Ireland

Dublin

Henry Street

Zone A €/ sq m/year

3,800

4,683

23.2%

245.1

2,375

Europe

Ireland

Dublin

Grafton Street

Zone A €/ sq m/year

5,650

5,920

4.8%

343.4

3,327

Europe

Ireland

Cork

Patrick Street

Zone A €/ sq m/year

2,000

2,200

10.0%

115.2

1,116

Europe

Ireland

Limerick

O'Connell Street

Zone A €/ sq m/year

550

550

0.0%

28.8

279

Europe

Ireland

Waterford

Broad Street

Zone A €/ sq m/year

750

750

0.0%

39.3

380

Europe

Ireland

Galway

Shop Street

Zone A €/ sq m/year

1,500

1,500

0.0%

78.5

761

Europe

Italy

Rome

Via Condotti

€/ sq m/year

9,500

11,000

15.8%

1,135.4

11,000

Europe

Italy

Rome

Piazza San Lorenzo

€/ sq m/year

6,000

5,500

-8.3%

567.7

5,500

Europe

Italy

Rome

Via del Corso

€/ sq m/year

4,300

4,800

11.6%

495.4

4,800

Europe

Italy

Rome

Via Cola di Rienzo

€/ sq m/year

3,000

3,000

0.0%

309.6

3,000

Europe

Italy

Rome

Piazza Di Spagna

€/ sq m/year

6,500

6,500

0.0%

670.9

6,500

Europe

Italy

Rome

Via del Babuino

€/ sq m/year

4,000

4,200

5.0%

433.5

4,200

Europe

Italy

Milan

6,000

9.1%

619.3

6,000

Italy

Milan

Corso Vittorio
€/ sq m/year
Emanuele
Via Montenapoleone €/ sq m/year

5,500

Europe

10,000

12,000

20.0%

1,238.6

12,000

Europe

Italy

Milan

Via della Spiga

€/ sq m/year

4,800

4,800

0.0%

495.4

4,800

Europe

Italy

Milan

Corso Buenos Aires

€/ sq m/year

2,200

2,200

0.0%

227.1

2,200

Europe

Italy

Milan

Corso Vercelli

€/ sq m/year

1,500

1,500

0.0%

154.8

1,500

Europe

Italy

Milan

Via Sant’Andrea

€/ sq m/year

5,500

5,700

3.6%

588.3

5,700

Europe

Italy

Bologna

Galleria Cavour

€/ sq m/year

1,800

1,600

-11.1%

165.1

1,600

Europe

Italy

Bologna

Via Indipendenza

€/ sq m/year

2,200

2,200

0.0%

227.1

2,200

Europe

Italy

Bologna

Via Rizzoli

€/ sq m/year

1,600

1,600

0.0%

165.1

1,600

40

LOCAL
MEASURE

RENT
RENT ANNUAL
JUNE 15 JUNE 16
RG

RENT
US$/SQ
FT/YR
JUNE 16

RENT
END 2017
€/
TREND
SQ M/YR (COMPARED
JUNE 16
TO 2016)

CONTINENT COUNTRY

CITY

LOCATION

Europe

Italy

Naples

1,600

1,600

0.0%

165.1

1,600

Italy

Naples

€/ sq m/year

1,700

1,700

0.0%

175.5

1,700

Europe

Italy

Turin

Via Roma/Via
Toledo
Via Filangieri/Via
dei Mille
Via Roma

€/ sq m/year

Europe

€/ sq m/year

1,700

1,700

0.0%

175.5

1,700

Europe

Italy

Turin

Via Lagrange

€/ sq m/year

1,200

1,200

0.0%

123.9

1,200

Europe

Italy

Genoa

Via XX Settembre

€/ sq m/year

1,200

1,300

8.3%

134.2

1,300

Europe

Italy

Florence

Via Tornabuoni

€/ sq m/year

2,700

2,800

3.7%

289.0

2,800

Europe

Italy

Florence

Via Calzaiuoli

€/ sq m/year

3,100

3,200

3.2%

330.3

3,200

Europe

Italy

Florence

Via Strozzi

€/ sq m/year

3,100

3,300

6.5%

340.6

3,300

Europe

Italy

Florence

Via Roma

€/ sq m/year

4,000

4,500

12.5%

464.5

4,500

Europe

Italy

Venezia

Mercerie

€/ sq m/year

3,100

3,000

-3.2%

309.6

3,000

Europe

Italy

Venezia

4,000

4,200

5.0%

433.5

4,200

Italy

Verona

Calle 22°Marzo/
Calle S.Moisè
Via Mazzini

€/ sq m/year

Europe

€/ sq m/year

2,200

2,200

0.0%

227.1

2,200

Europe

Italy

Padova

Via Cavour

€/ sq m/year

1,500

1,500

0.0%

154.8

1,500

Europe

Italy

Bari

Via Sparano

€/ sq m/year

1,300

1,400

7.7%

144.5

1,400

Europe

Italy

Catania

Via Etnea

€/ sq m/year

900

900

0.0%

92.9

900

Europe

Italy

Palermo

Via Ruggiero VII

€/ sq m/year

1,500

1,500

0.0%

154.8

1,500

Europe

Italy

Palermo

Via Libertà

€/ sq m/year

1,200

1,200

0.0%

123.9

1,200

Europe

Latvia

Riga

40

40

0.0%

49.5

480

Europe

Lithuania

Vilnius

40

40

0.0%

49.5

480

Europe

Lithuania

Kaunas

Kalku St./Valnu St./ €/ sq m/month
Audeju St./Terbatas
St./Kr.Barona St.
Gedimino Ave./
€/ sq m/month
Pilies St./
Didzioji St.
€/ sq m/month

15

15

0.0%

18.0

174

Europe

Lithuania

Klaipeda

€/ sq m/month

15

15

0.0%

18.0

174

Europe

Luxembourg

Grande Rue

€/ sq m/month

195

210

7.7%

260.1

2,520

Europe

Luxembourg

Avenue de la Gare

€/ sq m/month

85

90

5.9%

111.5

1,080

Europe

Macedonia

Luxembourg
City
Luxembourg
City
Skopje

Makedonija Street

€/ sq m/month

30

30

0.0%

37.2

360

Europe

Netherlands

Amsterdam

Kalverstraat

€/ sq m/year

2,900

3,000

3.4%

309.6

3,000

Europe

Netherlands

Amsterdam

P.C. Hooftstraat

€/ sq m/year

2,050

2,250

9.8%

232.2

2,250

Europe

Netherlands

Rotterdam

Lijnbaan

€/ sq m/year

1,650

1,600

-3.0%

165.1

1,600

Europe

Netherlands

The Hague

Spuistraat

€/ sq m/year

1,300

1,250

-3.8%

129.0

1,250

Europe

Netherlands

Utrecht

€/ sq m/year

1,600

1,600

0.0%

165.1

1,600

Europe

Netherlands

Maastricht

Lange
Elisabethstraat
Grote Staat

€/ sq m/year

1,600

1,600

0.0%

165.1

1,600

Europe

Netherlands

Eindhoven

Demer

€/ sq m/year

1,250

1,200

-4.0%

123.9

1,200

Europe

Netherlands

Arnhem

Ketelstraat

€/ sq m/year

900

850

-5.6%

87.7

850

Europe

Norway

Oslo

Karl Johan

Nkr/ sq m/year

25,000

27,000

8.0%

299.8

2,904

Europe

Norway

Oslo

Bogstadt St.

Nkr/ sq m/year

12,000

12,000

0.0%

133.2

1,291

Europe

Norway

Oslo

Akersgata

Nkr/ sq m/year

12,000

14,000

16.7%

155.4

1,506

Europe

Norway

Oslo

Nedre Slottsgate

Nkr/ sq m/year

16,000

18,000

12.5%

199.8

1,936

Europe

Poland

Warsaw

Nowy Swiat

€/ sq m/month

85

90

5.9%

111.5

1,080

Europe

Poland

Warsaw

Chmielna

€/ sq m/month

70

65

-7.1%

80.5

780

Europe

Poland

Warsaw

Al Jerozolimskie

€/ sq m/month

47

45

-4.3%

55.7

540

Europe

Poland

Warsaw

Marszalkowska

€/ sq m/month

60

65

8.3%

80.5

780

Europe

Poland

Warsaw

Trzech Krzyzy

€/ sq m/month

58

55

-5.2%

68.1

660

Europe

Poland

Krakow

ul Florianska

€/ sq m/month

72

75

4.2%

92.9

900

Europe

Poland

Krakow

Rynek

€/ sq m/month

50

50

0.0%

61.9

600

Europe

Poland

Katowice

ul 3 Maja

€/ sq m/month

50

50

0.0%

61.9

600

Europe

Poland

Katowice

Stawowa

€/ sq m/month

39

42

7.7%

52.0

504

Europe

Poland

Poznan

ul J H Dabrowkiego

€/ sq m/month

26

26

0.0%

32.2

312

Europe

Poland

Poznan

Sw. Marcin

€/ sq m/month

33

33

0.0%

40.9

396

Europe

Poland

Poznan

Polwiejska

€/ sq m/month

53

50

-5.7%

61.9

600

Europe

Poland

Lodz

ul Piotrkowska

€/ sq m/month

25

25

0.0%

31.0

300

Europe

Poland

Wroclaw

ul Świdnicka

€/ sq m/month

40

40

0.0%

49.5

480

Europe

Poland

Szczecin

ul Niepodleglosci

€/ sq m/month

33

33

0.0%

40.9

396

Europe

Poland

Gdynia

ul.Swietojanska

€/ sq m/month

29

29

0.0%

35.9

348

Europe

Portugal

Lisbon

Av da Liberdade

€/ sq m/month

88

90

2.9%

111.5

1,080

Europe

Portugal

Lisbon

Chiado

€/ sq m/month

98

100

2.6%

123.9

1,200

Europe

Portugal

Lisbon

Baixa

€/ sq m/month

60

70

16.7%

86.7

840

Europe

Portugal

Oporto

45

50

11.1%

61.9

600

Europe

Romania

Bucharest

Baixa (Rua de Santa €/ sq m/month
Catarina)
Magheru Boulevard €/ sq m/month

45

45

0.0%

55.7

540

Europe

Romania

Bucharest

Calea Victoriei

€/ sq m/month

45

45

0.0%

55.7

540

Europe

Romania

Brasov

Strada Republicii

€/ sq m/month

40

38

-5.0%

47.1

456

Europe

Romania

Timisoara

Victoriei

€/ sq m/month

37

37

0.0%

45.8

444

41

A Cushman & Wakefield Research Publication

LOCAL
MEASURE

RENT
RENT ANNUAL
JUNE 15 JUNE 16
RG

RENT
US$/SQ
FT/YR
JUNE 16

RENT
END 2017
€/
TREND
SQ M/YR (COMPARED
JUNE 16
TO 2016)

CONTINENT COUNTRY

CITY

LOCATION

Europe

Romania

Iasi

23

25

8.7%

31.0

300

Romania

Cluj

€/ sq m/month

37

37

0.0%

45.8

444

Europe

Russia

Moscow

Stefan cel Mare,
Cuza Voda
Memorandumului,
Napoca, Eroilor
Stoleshnikov

€/ sq m/month

Europe

4,250

3,131

-26.3%

290.9

2,818

Europe

Serbia

Belgrade

Kneza Mihaila

€/ sq m/month

85

85

0.0%

105.3

1,020

Europe

Slovakia

Bratislava

Obchodna ulica

€/ sq m/month

44

44

0.0%

54.5

528

Europe

Slovenia

Ljubljana

Slovenska ulica

€/ sq m/month

30

30

0.0%

37.2

360

Europe

Slovenia

Ljubljana

Čopova

€/ sq m/month

60

60

0.0%

74.3

720

Europe

Slovenia

Ljubljana

Stari trg

€/ sq m/month

25

25

0.0%

31.0

300

Europe

Spain

Madrid

Serrano

€/ sq m/month

225

240

6.7%

297.3

2,880

Europe

Spain

Madrid

Preciados

€/ sq m/month

250

255

2.0%

315.8

3,060

Europe

Spain

Madrid

220

220

0.0%

272.5

2,640

Spain

Madrid

José Ortega y
Gasset
Goya

€/ sq m/month

Europe

€/ sq m/month

165

170

3.0%

210.6

2,040

Europe

Spain

Madrid

Princesa

€/ sq m/month

100

105

5.0%

130.0

1,260

Europe

Spain

Madrid

Gran Vía

€/ sq m/month

220

235

6.8%

291.1

2,820

Europe

Spain

Madrid

Fuencarral

€/ sq m/month

160

175

9.4%

216.7

2,100

Europe

Spain

Barcelona

Portal de L'Angel

€/ sq m/month

270

275

1.9%

340.6

3,300

Europe

Spain

Barcelona

Passeig de Gracia

€/ sq m/month

230

245

6.5%

303.4

2,940

Europe

Spain

Barcelona

Diagonal

€/ sq m/month

50

60

20.0%

74.3

720

Europe

Spain

Barcelona

Rambla Catalunya

€/ sq m/month

95

100

5.3%

123.9

1,200

Europe

Spain

Barcelona

Pelai

€/ sq m/month

175

175

0.0%

216.7

2,100

Europe

Spain

Barcelona

Portaferrissa

€/ sq m/month

160

165

3.1%

204.4

1,980

Europe

Spain

Seville

Tetuan

€/ sq m/month

125

125

0.0%

154.8

1,500

Europe

Spain

Bilbao

Gran Via

€/ sq m/month

125

125

0.0%

154.8

1,500

Europe

Spain

Valencia

Colon

€/ sq m/month

125

130

4.0%

161.0

1,560

Europe

Spain

Malaga

Marques de Larios

€/ sq m/month

150

155

3.3%

192.0

1,860

Europe

Spain

Jaime III

€/ sq m/month

95

105

10.5%

130.0

1,260

Europe

Spain

Palma de
Mallorca
Zaragoza

85

85

0.0%

105.3

1,020

Sweden

Stockholm

Pl de la
Independencia
Biblioteksgatan

€/ sq m/month

Europe

Skr/ sq m/year

14,900

14,900

0.0%

163.4

1,583

Europe

Sweden

Gothenburg

Skr/ sq m/year

8,100

8,100

0.0%

88.8

861

Europe

Sweden

Gothenburg

Hamngatan/Ostra
Nord
Kungsgaten

Skr/ sq m/year

8,100

8,100

0.0%

88.8

861

Europe

Sweden

Malmo

Hansakompaniet

Skr/ sq m/year

6,200

6,200

0.0%

68.0

659

Europe

Sweden

Malmo

6,100

6,100

0.0%

66.9

648

Sweden

Malmo

Sodra
Forstadsgatan
Triangeln

Skr/ sq m/year

Europe

Skr/ sq m/year

5,000

5,000

0.0%

54.8

531

Europe

Switzerland

Zurich

Bahnhofstrasse

SFr/ sq m/year

9,000

9,100

1.1%

867.8

8,408

Europe

Switzerland

Geneva

Rue de Rhone

SFr/ sq m/year

4,000

4,000

0.0%

381.5

3,696

Europe

Switzerland

Lausanne

Rue de Bourg

SFr/ sq m/year

1,500

1,500

0.0%

143.0

1,386

Europe

Switzerland

Bern

Spital-/Marktgasse

SFr/ sq m/year

3,100

3,000

-3.2%

286.1

2,772

Europe

Switzerland

Basle

Freie Strasse

SFr/ sq m/year

2,700

2,300

-14.8%

219.3

2,125

Europe

Switzerland

Luzern

SFr/ sq m/year

2,300

2,300

0.0%

219.3

2,125

Europe

Turkey

Istanbul

$/ sq m/month

280

280

0.0%

312.2

3,024

Europe

Turkey

Istanbul

$/ sq m/month

280

275

-1.8%

306.6

2,970

Europe

Turkey

Istanbul

$/ sq m/month

260

250

-3.8%

278.7

2,700

Europe

Turkey

Istanbul

$/ sq m/month

220

210

-4.5%

234.1

2,268

Europe

Turkey

Istanbul

$/ sq m/month

145

140

-3.4%

156.1

1,512

Europe

Turkey

Istanbul

$/ sq m/month

60

60

0.0%

66.9

648

Europe

Turkey

Izmir

Weggisgasse/
Hertensteinstrasse
Centre – Istiklal
Street
Centre – Bagdat
Caddesi (Asian side)
Abdi Ipecki
(European Side)
Valikonagi Caddesi
(European Side)
Rumeli Cadesi
(European side)
Out of Town/
Suburban
Alsancak

$/ sq m/month

155

140

-9.7%

156.1

1,512

Europe

Turkey

Izmir

Karşıyaka

$/ sq m/month

135

130

-3.7%

144.9

1,404

Europe

Turkey

Ankara

Centre – Kızılay Bulv. $/ sq m/month

175

170

-2.9%

189.5

1,836

Europe

Turkey

Ankara

Tunalı Hilmi Street

$/ sq m/month

165

160

-3.0%

178.4

1,728

Europe

UK

London

Bishopsgate

Zone A £/ sq ft/year

260

260

0.0%

177.2

1,717

Europe

UK

London

Cheapside

Zone A £/ sq ft/year

255

255

0.0%

173.8

1,684

Europe

UK

London

New Bond Street

Zone A £/ sq ft/year

1,400

1,600

14.3%

1,283.3

12,434

Europe

UK

London

Oxford Street

Zone A £/ sq ft/year

950

950

0.0%

761.9

7,382

Europe

UK

London

Regent Street

Zone A £/ sq ft/year

700

700

0.0%

561.4

5,440

Europe

UK

London

Covent Garden

Zone A £/ sq ft/year

950

1,250

31.6%

852.2

8,257

Europe

UK

London

Sloane Street

Zone A £/ sq ft/year

825

1,050

27.3%

715.8

6,935

Europe

UK

London

Brompton Road

Zone A £/ sq ft/year

850

870

2.4%

593.1

5,747

Europe

UK

London

Croydon – North
End Road

Zone A £/ sq ft/year

160

180

12.5%

122.7

1,189

42

$/ sq m/year

RENT
RENT ANNUAL
JUNE 15 JUNE 16
RG

RENT
US$/SQ
FT/YR
JUNE 16

RENT
END 2017
€/
TREND
SQ M/YR (COMPARED
JUNE 16
TO 2016)

CONTINENT COUNTRY

CITY

LOCATION

LOCAL
MEASURE

Europe

UK

Manchester

Market Square

Zone A £/ sq ft/year

260

275

5.8%

187.5

1,816

Europe

UK

Birmingham

High St

Zone A £/ sq ft/year

185

205

10.8%

139.8

1,354

Europe

UK

Bristol

Broadmead

Zone A £/ sq ft/year

115

120

4.3%

81.8

793

Europe

UK

Leeds

Commercial Road

Zone A £/ sq ft/year

225

245

8.9%

167.0

1,618

Europe

UK

Newcastle

Northumberland

Zone A £/ sq ft/year

240

240

0.0%

163.6

1,585

Europe

UK

Cardiff

Queen Street

Zone A £/ sq ft/year

200

205

2.5%

139.8

1,354

Europe

UK

Nottingham

Clumber Street

Zone A £/ sq ft/year

155

175

12.9%

119.3

1,156

Europe

UK

Sheffield

Friargate

Zone A £/ sq ft/year

200

190

-5.0%

129.5

1,255

Europe

UK

Edinburgh

Princes Street

Zone A £/ sq ft/year

200

215

7.5%

197.6

1,914

Europe

UK

Glasgow

Buchanan Street

Zone A £/ sq ft/year

260

300

15.4%

275.7

2,671

Europe

UK

Belfast

Donegal Place

Zone A £/ sq ft/year

125

125

0.0%

85.2

826

Europe

Ukraine

Kyiv

Kreschatik Street

$/ sq m/month

40

40

0.0%

44.6

432

Europe

Ukraine

Kyiv

Gorodetskogo
Street

$/ sq m/month

50

50

0.0%

55.7

540

MIDDLE EAST AND AFRICA
Middle East
Israel

Tel Aviv

Dizengoff Street

NIS/sq m/year

3,720

3,500

-5.9%

84.4

818

Middle East

Israel

Tel Aviv

Kikar Hamedina

NIS/sq m/year

5,400

5,100

-5.6%

123.0

1,192

Middle East

Israel

Tel Aviv

NIS/sq m/year

4,100

4,100

0.0%

98.9

958

Middle East

Israel

Jerusalem

Sarona Exclusive
Park
Mamilla

NIS/sq m/year

4,200

4,200

0.0%

101.3

982

Middle East

Israel

Jerusalem

King George Street

NIS/sq m/year

3,600

3,600

0.0%

86.8

841

Middle East

Jordan

Amman

City Centre (CBD)

USD/sq m/year

450

700

55.6%

16.9

164

Middle East

Lebanon

Beirut

Rue Verdun

USD/sq m/year

950

750

-21.1%

18.1

175

Middle East

Lebanon

Beirut

Rue Hamra

USD/sq m/year

850

1,000

17.6%

24.1

234

Middle East

Lebanon

Beirut

Kaslik

USD/sq m/year

850

750

-11.8%

18.1

175

Middle East

Oman

Muscat

High Street

OMR/sq m/month

15

16

6.7%

46.3

449

Middle East

Qatar

Doha

Prime

QAR/sq m/month

Middle East

Saudi Arabia

Riyadh

Middle East

Saudi Arabia

Jeddah

Middle East

UAE

Dubai

Prime

Middle East

UAE

Dubai

Sub Prime

Middle East

UAE

Dubai

Secondary

Middle East

UAE

Abu Dhabi

Middle East

UAE

Middle East

300

300

0.0%

91.8

890

SAR.sq m/year

2,100

2,500

19.0%

61.9

600

SAR.sq m/year

2,500

2,600

4.0%

64.4

624

AED/sq ft/year

550

550

0.0%

149.7

1,451

AED/sq ft/year

400

400

0.0%

108.9

1,055

AED/sq ft/year

210

210

0.0%

57.2

554

A

AED/sq m/year

2,500

2,400

-4.0%

60.7

588

Abu Dhabi

B

AED/sq m/year

1,500

1,450

-3.3%

36.7

355

UAE

Abu Dhabi

C

AED/sq m/year

800

750

-6.3%

19.0

184

Middle East

UAE

Sharjah

A

AED/sq ft/year

170

170

0.0%

46.3

448

Middle East

UAE

Sharjah

B

AED/sq ft/year

130

130

0.0%

35.4

343

Middle East

UAE

Sharjah

C

AED/sq ft/year

90

90

0.0%

24.5

237

Africa

South Africa

Cape Town

V&A Waterfornt

ZAR/sq m/month

1,200

1,300

8.3%

99.0

959

Africa

South Africa

Cape Town

St. Georges Mall

ZAR/sq m/month

110

150

36.4%

11.4

111

Africa

South Africa

Johannesburg

Sandton City

ZAR/sq m/month

1,200

1,500

25.0%

114.2

1,106

Africa

South Africa

Durban

The Pavilion

ZAR/sq m/month

450

500

11.1%

38.1

369

Africa

South Africa

Durban

West Street

ZAR/sq m/month

250

270

8.0%

20.6

199

Africa

South Africa

Pretoria

Menlyn Park

ZAR/sq m/month

500

500

0.0%

38.1

369

Africa

South Africa

Claremont

CBD

ZAR/sq m/month

110

125

13.6%

9.5

92

Africa

South Africa

East Rand

Eastgate

ZAR/sq m/month

950

1,000

5.3%

76.1

738

Africa

South Africa

Durban North

Umhlanga

ZAR/sq m/month

280

300

7.1%

22.8

221

Africa

South Africa

Pietermaritsburg CBD

ZAR/sq m/month

185

200

8.1%

15.2

148

Africa

Ghana

Accra

USD/sq m/month

50

43

-14.0%

47.9

464

Africa

Kenya

Nairobi

USD/sq m/month

48

37

-22.9%

41.2

400

Africa

Mozambique

Maputo

USD/sq m/month

40

33

-17.5%

36.8

356

Africa

Namibia

Windhoek

USD/sq m/month

24

20

-16.7%

22.3

216

Africa

Nigeria

Lagos

USD/sq m/month

80

40

-50.0%

44.6

432

Africa

Tanzania

Dar es Salaam

USD/sq m/month

30

30

0.0%

33.4

324

Africa

Zambia

Lusaka

USD/sq m/month

35

35

0.0%

39.0

378

Africa

Zimbabwe

Harare

USD/sq m/month

25

25

0.0%

27.9

270

ASIA PACIFIC
Asia Pacific
Australia

Melbourne

Bourke Street

AUD/sq m/year

6,625

7,000

5.7%

484.2

4,692

Asia Pacific

Australia

Brisbane

Queen Street Mall

AUD/sq m/year

4,250

4,250

0.0%

294.0

2,849

Asia Pacific

Australia

Sydney

Pitt Street Mall

AUD/sq m/year

13,250

14,000

5.7%

968.5

9,383

Asia Pacific

China

Beijing

CBD

RMB/sq m/month

985

1,015

3.0%

170.4

1,651

Asia Pacific

China

Beijing

Wangfujing

RMB/sq m/month

1,619

1,780

10.0%

298.7

2,894

Asia Pacific

China

Chengdu

RMB/sq m/month

732

704

-3.9%

118.1

1,145

Asia Pacific

China

Chongqing

RMB/sq m/month

770

750

-2.7%

125.8

1,219

Asia Pacific

China

Dalian

RMB/sq m/month

755

703

-6.8%

118.0

1,143

Asia Pacific

China

Guangzhou

RMB/sq m/month

1,365

1,350

-1.2%

226.5

2,194

43

A Cushman & Wakefield Research Publication

CONTINENT COUNTRY

CITY

LOCATION

Asia Pacific

China

Guangzhou

Asia Pacific

China

Guangzhou

Ti Yu Zhong Xin
District
Yuexiu

Asia Pacific

China

Guangzhou

Asia Pacific

China

Hangzhou

Asia Pacific

China

Asia Pacific

China

Asia Pacific

China

Shanghai

Asia Pacific

China

Asia Pacific

China

Asia Pacific
Asia Pacific

LOCAL
MEASURE

RENT
RENT ANNUAL
JUNE 15 JUNE 16
RG

RENT
US$/SQ
FT/YR
JUNE 16

RENT
END 2017
€/
TREND
SQ M/YR (COMPARED
JUNE 16
TO 2016)

RMB/sq m/month

1,768

1,725

-2.5%

289.4

2,804

RMB/sq m/month

1,051

1,007

-4.1%

169.0

1,638

Zhu Jiang Xin Cheng RMB/sq m/month
District
RMB/sq m/month

600

607

1.1%

101.8

986

1,217

1,229

1.0%

206.2

1,998

Nanjing

RMB/sq m/month

1,129

1,081

-4.3%

181.3

1,757

Qingdao

RMB/sq m/month

474

474

0.0%

79.5

771

East Nanjing Road

RMB/sq m/month

1,972

1,969

-0.1%

330.4

3,201

Shanghai

Huaihai Road

RMB/sq m/month

1,740

1,586

-8.8%

266.1

2,579

Shanghai

Lujiazui

RMB/sq m/month

1,652

1,648

-0.2%

276.5

2,679

China

Shanghai

West Nanjing Road

RMB/sq m/month

2,433

2,446

0.5%

410.5

3,977

China

Shanghai

Xujiahui

RMB/sq m/month

2,141

2,208

3.1%

370.6

3,590

Asia Pacific

China

Shenyang

RMB/sq m/month

310

306

-1.3%

51.3

498

Asia Pacific

China

Shenzhen

RMB/sq m/month

917

917

-0.1%

153.8

1,490

Asia Pacific

China

Shenzhen

Futian

RMB/sq m/month

1,040

921

-11.4%

154.6

1,498

Asia Pacific

China

Shenzhen

Luohu

RMB/sq m/month

1,450

1,583

9.2%

265.7

2,574

Asia Pacific

China

Shenzhen

Nanshan

RMB/sq m/month

814

857

5.3%

143.8

1,394

Asia Pacific

China

Tianjin

RMB/sq m/month

477

464

-2.6%

77.9

755

Asia Pacific

China

Wuhan

Luxiang

RMB/sq m/month

568

634

11.6%

106.4

1,031

Asia Pacific

China

Wuhan

Wangjiawan

RMB/sq m/month

430

439

2.1%

73.7

714

Asia Pacific

China

Wuhan

Wuguang

RMB/sq m/month

733

789

7.6%

132.3

1,282

Asia Pacific

China

Wuhan

Zhongshan Avenue

RMB/sq m/month

673

714

6.1%

119.8

1,161

Asia Pacific

China

Xiamen

RMB/sq m/month

690

665

-3.6%

111.6

1,081

Asia Pacific

China

Xi'an

RMB/sq m/month

270

270

0.0%

45.3

439

Asia Pacific

Hong Kong

Hong Kong

Causeway Bay

HKD/sq ft/month

2,200

1,861

-15.4%

2,877.9

27,884

Asia Pacific

Hong Kong

Hong Kong

Mongkok

HKD/sq ft/month

680

567

-16.7%

876.6

8,493

Asia Pacific

Hong Kong

Hong Kong

Tsim Sha Tsui

HKD/sq ft/month

2,000

1,755

-12.3%

2,714.2

26,297

Asia Pacific

India

Bengaluru

Brigade Road

INR/sq ft/month

285

280

-1.8%

49.8

482

Asia Pacific

India

Bengaluru

MG Road

INR/sq ft/month

240

240

0.0%

42.7

413

Asia Pacific

India

Bengaluru

INR/sq ft/month

330

330

0.0%

58.7

568

Asia Pacific

India

Bengaluru

INR/sq ft/month

120

120

0.0%

21.3

207

Asia Pacific

India

Bengaluru

INR/sq ft/month

120

120

0.0%

21.3

207

Asia Pacific

India

Bengaluru

Jayanagar 4th
Block, 11th Main
Sampige Road,
Malleswaram
Koramangala 80
Feet Road
Vittal Mallya Road

INR/sq ft/month

270

270

0.0%

48.0

465

Asia Pacific

India

Bengaluru

New BEL Road

INR/sq ft/month

145

150

3.4%

26.7

258

Asia Pacific

India

Bengaluru

INR/sq ft/month

125

160

28.0%

28.4

276

Asia Pacific

India

Bengaluru

INR/sq ft/month

140

150

7.1%

26.7

258

Asia Pacific

India

Bengaluru

INR/sq ft/month

190

190

0.0%

33.8

327

Asia Pacific

India

Bengaluru

INR/sq ft/month

130

140

7.7%

24.9

241

Asia Pacific

India

Chennai

Marathahalli
Junction
Kamanahalli Main
Road
Indiranagar 100 Feer
Road
HSR Layout 27th
Main
Nugambakkam

INR/sq ft/month

150

150

0.0%

26.7

258

Asia Pacific

India

Chennai

210

210

0.0%

37.3

362

Asia Pacific

India

Chennai

140

160

14.3%

28.4

276

Asia Pacific

India

Chennai

Khader Nawaz Khan INR/sq ft/month
Road
Cathedral Road – RK INR/sq ft/month
Salai
Usman Road – South INR/sq ft/month

130

130

0.0%

23.1

224

Asia Pacific

India

Chennai

Usman Road – North INR/sq ft/month

140

140

0.0%

24.9

241

Asia Pacific

India

Chennai

Adyar Main Road

INR/sq ft/month

160

150

-6.3%

26.7

258

Asia Pacific

India

Chennai

150

150

0.0%

26.7

258

India

Chennai

INR/sq ft/month

125

130

4.0%

23.1

224

Asia Pacific

India

Chennai

Anna Nagar 2nd
Avenue
Purusavakam High
Road
Pondy Bazaar

INR/sq ft/month

Asia Pacific

Asia Pacific

India

Chennai

Asia Pacific

India

Chennai

INR/sq ft/month

160

160

0.0%

28.4

276

INR/sq ft/month

130

130

0.0%

23.1

224

INR/sq ft/month

120

120

0.0%

21.3

207

Asia Pacific

India

Hyderabad

Velachery Bypass
Road
Ambattur (MTH
Road)
Banjara Hills

INR/sq ft/month

130

130

0.0%

23.1

224

Asia Pacific

India

Hyderabad

MG Road

INR/sq ft/month

110

110

0.0%

19.6

189

Asia Pacific

India

Hyderabad

SP Road/Begumpet INR/sq ft/month

110

110

0.0%

19.6

189

Asia Pacific

India

Hyderabad

INR/sq ft/month

90

90

0.0%

16.0

155

Asia Pacific

India

Hyderabad

Raj Bhavan Road/
Somajiguda
Abids

INR/sq ft/month

110

110

0.0%

19.6

189

Asia Pacific

India

Hyderabad

Himayathnagar

INR/sq ft/month

140

140

0.0%

24.9

241

Asia Pacific

India

Hyderabad

Ameerpet

INR/sq ft/month

125

125

0.0%

22.2

215

Asia Pacific

India

Hyderabad

Jubilee Hills Road
No. 36

INR/sq ft/month

125

125

0.0%

22.2

215

44

LOCAL
MEASURE

RENT
RENT ANNUAL
JUNE 15 JUNE 16
RG

RENT
US$/SQ
FT/YR
JUNE 16

RENT
END 2017
€/
TREND
SQ M/YR (COMPARED
JUNE 16
TO 2016)

CONTINENT COUNTRY

CITY

LOCATION

Asia Pacific

India

Hyderabad

Kukatpally NH No. 9 INR/sq ft/month

140

140

0.0%

24.9

241

Asia Pacific

India

Hyderabad

A.S. Rao Nagar

INR/sq ft/month

120

120

0.0%

21.3

207

Asia Pacific

India

Hyderabad

Madhapur

INR/sq ft/month

100

100

0.0%

17.8

172

Asia Pacific

India

Hyderabad

Punjagutta

INR/sq ft/month

155

155

0.0%

27.6

267

Asia Pacific

India

Pune

M G Road

INR/sq ft/month

310

320

3.2%

56.9

551

Asia Pacific

India

Pune

JM Road

INR/sq ft/month

380

370

-2.6%

65.8

637

Asia Pacific

India

Pune

FC Road

INR/sq ft/month

245

250

2.0%

44.4

431

Asia Pacific

India

Pune

Koregaon Park

INR/sq ft/month

120

120

0.0%

21.3

207

Asia Pacific

India

Pune

Aundh

INR/sq ft/month

190

180

-5.3%

32.0

310

Asia Pacific

India

Pune

Bund Garden

INR/sq ft/month

140

140

0.0%

24.9

241

Asia Pacific

India

Pune

INR/sq ft/month

115

120

4.3%

21.3

207

Asia Pacific

India

Kolkata

Mumbai Pune
Highway – PCMC
Park Street

INR/sq ft/month

500

500

0.0%

88.9

861

Asia Pacific

India

Kolkata

Camac Street

INR/sq ft/month

450

450

0.0%

80.0

775

Asia Pacific

India

Kolkata

Elgin Road

INR/sq ft/month

320

320

0.0%

56.9

551

Asia Pacific

India

Kolkata

Theatre Road

INR/sq ft/month

200

200

0.0%

35.6

345

Asia Pacific

India

Ahmedabad

C G Road

INR/sq ft/month

150

150

0.0%

26.7

258

Asia Pacific

India

Ahmedabad

Law Garden

INR/sq ft/month

120

120

0.0%

21.3

207

Asia Pacific

India

Ahmedabad

Satellite Road

INR/sq ft/month

150

150

0.0%

26.7

258

Asia Pacific

India

Ahmedabad

Maninagar

INR/sq ft/month

140

140

0.0%

24.9

241

Asia Pacific

India

Ahmedabad

Prahladnagar

INR/sq ft/month

130

130

0.0%

23.1

224

Asia Pacific

India

Ahmedabad

S.G. Highway

INR/sq ft/month

100

100

0.0%

17.8

172

Asia Pacific

India

Mumbai

INR/sq ft/month

750

760

1.3%

133.3

1,292

Asia Pacific

India

Mumbai

INR/sq ft/month

400

425

6.3%

75.6

732

Asia Pacific

India

Mumbai

INR/sq ft/month

350

375

7.1%

66.7

646

Asia Pacific

India

Mumbai

Linking Road,
Western Suburban
Kemps Corner,
South Mumbai
Fort/Fountain,
South Mumbai
Colaba Causeway

INR/sq ft/month

600

625

4.2%

111.1

1,077

Asia Pacific

India

Mumbai

INR/sq ft/month

350

400

14.3%

71.1

689

Asia Pacific

India

Mumbai

Lokhandwala,
Andheri
Borivali

INR/sq ft/month

370

400

8.1%

71.1

689

Asia Pacific

India

Mumbai

Chembur

INR/sq ft/month

350

375

7.1%

66.7

646

Asia Pacific

India

Mumbai

Vashi

INR/sq ft/month

350

350

0.0%

62.2

603

Asia Pacific

India

Mumbai

Thane

INR/sq ft/month

250

250

0.0%

44.4

431

Asia Pacific

India

New Delhi

Connaught Place

INR/sq ft/month

850

850

0.0%

151.1

1,464

Asia Pacific

India

New Delhi

Karol Bagh

INR/sq ft/month

375

375

0.0%

66.7

646

Asia Pacific

India

New Delhi

South Extension

INR/sq ft/month

750

700

-6.7%

124.5

1,206

Asia Pacific

India

New Delhi

Khan Market

INR/sq ft/month

1,250

1,250

0.0%

222.2

2,153

Asia Pacific

India

New Delhi

Greater Kailash I

INR/sq ft/month

550

460

-16.4%

84.5

818

Asia Pacific

India

New Delhi

Rajouri Garden

INR/sq ft/month

200

225

12.5%

35.6

345

Asia Pacific

India

New Delhi

Kamla Nagar

INR/sq ft/month

400

400

0.0%

71.1

689

Asia Pacific

India

Guragon

DLF Galleria

INR/sq ft/month

750

800

6.7%

133.3

1,292

Asia Pacific

India

Noida

Sector 18

INR/sq ft/month

225

200

-11.1%

40.0

388

Asia Pacific

Indonesia

Jakarta

Prime

IDR/sqm per month

878,300 943,700

7.4%

79.6

771

Asia Pacific

Japan

Tokyo

Ginza

JYP/Tsubo/month

320,000 380,000

18.8%

1,249.1

12,103

Asia Pacific

Japan

Tokyo

Shibuya

JYP/Tsubo/month

150,000 180,000

20.0%

591.7

5,733

Asia Pacific

Japan

Tokyo

Omotesando

JYP/Tsubo/month

300,000 300,000

0.0%

986.2

9,555

Asia Pacific

Japan

Tokyo

Shinjuku

JYP/Tsubo/month

220,000 250,000

13.6%

821.8

7,962

Asia Pacific

Malaysia

Kuala Lumpur

Bukit Bintang

MYR/sq ft/month

30

28

-6.7%

83.3

808

Asia Pacific

Malaysia

Kuala Lumpur

Suria KLCC

MYR/sq ft/month

75

78

4.0%

232.2

2,249

Asia Pacific

Malaysia

Kuala Lumpur

82

82

0.0%

244.1

2,365

New Zealand

Auckland

Pavilion KL (prime
lots)
Queen Street

MYR/sq ft/month

Asia Pacific

NZD/sq m/month

230

235

2.2%

186.9

1,808

Asia Pacific

New Zealand

Wellington

Lambton Quay

NZD/sq m/month

210

217

3.3%

172.6

1,669

Asia Pacific

Philippines

2,282

2,400

5.2%

56.9

551

Philippines

PHP/sq m/month

2,346

2,400

2.3%

56.9

551

Asia Pacific

Singapore

Singapore

Bonifacio High
Street
Makati CBD,
Rockwell, Century
City
Orchard Road

PHP/sq m/month

Asia Pacific

Taguig (Metro
Manila)
Makati (Metro
Manila)

SGD/sq ft/month

38

37

-2.6%

328.3

3,181

Asia Pacific

Singapore

Singapore

City Fringe

SGD/sq ft/month

23

23

-3.3%

200.8

1,945

Asia Pacific

Singapore

Singapore

Suburban

SGD/sq ft/month

32

32

-0.4%

281.3

2,726

Asia Pacific

South Korea

Seoul

Myeongdong

KRW/sq m/month

882,288

937,714

6.3%

907.6

8,793

Asia Pacific

South Korea

Seoul

Gangnam Station

KRW/sq m/month

673,536

722,820

7.3%

699.6

6,778

Asia Pacific

South Korea

Seoul

Garosugil

KRW/sq m/month

371,319

363,025

-2.2%

351.4

3,404

Asia Pacific

Taiwan

Taipei

Nanjing Zhongshan

TWD/ping/month

12,000

11,000

-8.3%

115.0

1,114

Asia Pacific

Taiwan

Taipei

TWD/ping/month

13,000

12,500

-3.8%

130.7

1,266

Asia Pacific

Taiwan

Taipei

Taipei Railway
Station
Ximen

TWD/ping/month

17,500

17,500

0.0%

182.9

1,773

45

A Cushman & Wakefield Research Publication

CONTINENT COUNTRY

CITY

LOCATION

LOCAL
MEASURE

Asia Pacific

Taiwan

Taipei

Zhongxiao

Asia Pacific

Thailand

Bangkok

Asia Pacific

Thailand

Asia Pacific
Asia Pacific

RENT
RENT ANNUAL
JUNE 15 JUNE 16
RG

RENT
US$/SQ
FT/YR
JUNE 16

RENT
END 2017
€/
TREND
SQ M/YR (COMPARED
JUNE 16
TO 2016)

TWD/ping/month

22,500

21,500

-4.4%

224.8

2,178

THB/sq m/month

3,800

3,840

1.1%

121.8

1,180

THB/sq m/month

2,050

2,110

2.9%

66.9

649

Vietnam

Central Retail
District (CRD)
(Rajprasong/
Sukhumvit street)
Bangkok
CRD Fringe and
Suburban
Ho Chi Minh City Prime High Street

USD/sq m/month

135

150

11.1%

167.2

1,620

Vietnam

Hanoi

USD/sq m/month

120

120

0.0%

133.8

1,296

Asia Pacific

Vietnam

190

200

5.3%

223.0

2,160

Asia Pacific

Vietnam

Ho Chi Minh City Best Achieved
USD/sq m/month
Shopping Mall (GF)
Hanoi
Prime shopping mall USD/sq m/month
(ground floor)

150

150

0.0%

167.2

1,620

CBD Fringe

NORTH AMERICA
North America Canada

Calgary

17th Avenue SW

CAD/sq ft/year

50

50

0.0%

38.5

373

North America Canada

Edmonton

Whyte Avenue

CAD/sq ft/year

43

50

16.3%

38.5

373

North America Canada

Montreal

180

0.0%

138.6

1,343

Ottawa

Saint-Catherine W – CAD/sq ft/year
Street Level
Wellington Street
CAD/sq ft/year

180

North America Canada

40

40

0.0%

30.8

298

North America Canada

Toronto

Bloor Street

CAD/sq ft/year

325

325

0.0%

250.3

2,425

North America Canada

Toronto

Queen Street West

CAD/sq ft/year

110

110

0.0%

84.7

821

North America Canada

Vancouver

Robson Street

CAD/sq ft/year

220

215

-2.3%

165.6

1,604

North America USA

Boston

Newbury Street

USD/sq ft/year

150

150

0.0%

150.0

1,453

North America USA

Chicago

USD/sq ft/year

525

550

4.8%

550.0

5,329

North America USA

Chicago

North Michigan
Avenue
East Oak Street

USD/sq ft/year

340

375

10.3%

375.0

3,633

North America USA

Chicago

State Street

USD/sq ft/year

175

175

0.0%

175.0

1,695

North America USA

Los Angeles

USD/sq ft/year

800

800

0.0%

800.0

7,751

North America USA

Miami

Rodeo Drive
(Beverly Hills)
Lincoln Road

North America USA

New York

North America USA

New York

North America USA

New York

North America USA

New York

North America USA

New York

USD/sq ft/year

325

325

0.0%

325.0

3,149

Upper 5th Avenue
(49th – 60th Sts)
Lower 5th Avenue
(42nd – 49th Sts)
Madison Avenue

USD/sq ft/year

3,500

3,000

-14.3%

3,000.0

29,065

USD/sq ft/year

1,000

900

-10.0%

900.0

8,720

USD/sq ft/year

1,500

1,300

-13.3%

1,300.0

12,595

USD/sq ft/year

2,300

2,000

-13.0%

2,000.0

19,377

USD/sq ft/year

795

600

-24.5%

600.0

5,813

North America USA

Palm Beach

Times Square
Bowtie
SoHo (High Streets:
Broadway, Prince &
Spring Streets)
Worth Avenue

USD/sq ft/year

150

150

0.0%

150.0

1,453

North America USA

Philadelphia

Walnut Street

USD/sq ft/year

145

135

-6.9%

135.0

1,308

North America USA

San Diego

72

72

0.0%

72.0

698

North America USA

San Diego

78

78

0.0%

78.0

756

650

685

5.4%

685.0

6,637

495

545

10.1%

545.0

5,280

North America USA

San Francisco

5th Avenue,
USD/sq ft/year
Gaslamp
Del Mar Heights Blvd USD/sq ft/year
(Suburban Del Mar
Heights)
Union Square
USD/sq ft/year

North America USA

San Francisco

Post Street

USD/sq ft/year

North America USA

Seattle

CBD/Core

USD/sq ft/year

70

75

7.1%

75.0

727

North America USA

Washington DC

Georgetown

USD/sq ft/year

150

170

13.3%

170.0

1,647

North America USA

Washington DC

Chevy Chase

USD/sq ft/year

90

85

-5.6%

85.0

824

North America USA

Washington DC

Penn Quarter

USD/sq ft/year

220

205

-6.8%

205.0

1,986

North America USA

Washington DC

Dupon Circle

USD/sq ft/year

110

105

-4.5%

105.0

1,017

North America Mexico

Mexico City

Masaryk

USD/sq m/month

92

90

-2.2%

100.3

972

North America Mexico

Mexico City

Madero Street

USD/sq m/month

89

87

-2.2%

97.0

940

North America Mexico

Mexico City

Altavista Street

USD/sq m/month

36

35

-2.8%

39.0

378

North America Mexico

Monterrey

Calzada del Valle

USD/sq m/month

55

51

-7.3%

56.9

551

SOUTH AMERICA
South America Brazil

Rio de Janeiro

117

117

0.0%

40.6

393

South America Brazil

Rio de Janeiro

325

325

0.0%

113.1

1,096

South America Brazil

São Paulo

Visconde de Pirajá
BRL/sqm/month
(Ipanema)
Garcia D'avilla
BRL/sqm/month
(Ipanema)
Oscar Freire Jardins BRL/sqm/month

210

210

0.0%

73.1

708

South America Brazil

São Paulo

Haddock Lobo

BRL/sqm/month

120

120

0.0%

41.8

405

South America Brazil

São Paulo

Alameda Lorena

BRL/sqm/month

125

125

0.0%

43.5

421

South America Brazil

São Paulo

Bela Cintra

BRL/sqm/month

130

130

0.0%

45.2

438

South America Colombia

Bogota

Zona T – 82 Calle

USD/sqm/month

90

90

0.0%

100.3

972

South America Peru

Lima

Otros

USD/sq m/month

35

34

-1.4%

37.9

367

South America Peru

Lima

San Isidro

USD/sq m/month

42

36

-14.3%

40.1

389

46

47


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