East End holds firm at seventh spot from last year – New York’s 5th Ave takes first place as highest retail rents in Americas
WASHINGTON DC., November 15, 2017 – Cushman & Wakefield has released the 29th edition of its global flagship report, Main Streets Across the World, and within the Americas – Washington DC’s East End is listed as the seventh most expensive location in the country (*see table listing below).
The report tracks 451 of the top retail streets around the globe, ranking the most expensive in 68 countries by their prime rental value and
enabling an analysis of trends in retail real estate performance.
The top-five global city locations include: 1. New York’s 5th Avenue (49th – 60th Streets); 2. Hong Kong’s Causeway Bay; 3. London’s New Bond Street; 4. Milan’s Via Montenapoleone; and 5. Paris’ Avenue des Champs Elysees.
In the Americas, the list’s top five includes: 1. New York’s 5th Avenue (49th – 60th Streets); 2. Los Angeles’ Rodeo Drive; 3. San Francisco’s Union Square; 4. Chicago’s North Michigan Avenue; and 5. Miami’s Lincoln Road.
Cushman & Wakefield’s Senior Associate, Hugo Gilbert, based in Washington DC, said, “The East End neighborhood has been the entertainment hub of the District of Columbia for over 15 years surrounding the MCI, Verizon and now named Capitol One Center, however it is now arguably the most dynamic retail submarket for the entire region.”
“With exciting new retail destinations continuing to emerge around the Nation’s Capitol the East End continues to make it known that it is a top priority for any retailer or restaurant coming to the city. Brands that have recently opened or announced their first stores in DC proper here include Hermes, Tiffany & Co., Momofuko, Saks Off Fifth, Yard House, and The Smith, just to name a few. The luxury development CityCenterDC, which officially opened in November 2015, has its second phase well underway anchored by a Hilton Conrad flag hotel and the aforementioned Tiffany & Co.’s flagship. Apple will open a global flagship location, luxury gym Equinox will be opening its second location here, and Comcast is launching its Studio Xfinity experience store on 7th Street,” Mr. Gilbert added.
“Historically the ‘old downtown’ area now goes by the East End, Penn Quarter, or Chinatown. The area runs north of Pennsylvania Avenue, south of Mount Vernon Square, between the White House and I-395, and has built upon its central location as the hub of Downtown DC. The East End comes alive at night with its bustling restaurant scene, entertainment options by way of the Capital One Center and many cinema, theatre, and other entertainment venues and it’s a shopper’s mecca lined with all of the leading global brands – a magnet for locals and tourists alike,” Mr. Gilbert said.
In Washington DC, niche retail continues to remain in demand among consumers that are seeking a curated shopping experience, while online retailers continue to open bricks & mortar outlets. H&M’s sister brand & Other Stories opened its first area store on M Street in Georgetown in early 2017, while Uniqlo has opened two pop-up locations, one in Union Station in September and another more recently in the East End.
The southwest waterfront development known as The Wharf, (just having opened this October) along with continued growth in the Capitol Riverfront area around the MLB Washington Nationals Stadium and the Union Market/NoMa neighborhoods continue to grab headlines as hot retail, entertainment, and dining markets.
Looking ahead, technology will continue to shape the consumer experience, although the District’s lack of urban logistics provision may slow the growth of on-demand delivery services given the area’s traffic congestion. However, consumers will still demand a high quality retail experience when shopping and eating out, which will support curated stores and chef-driven concepts.
Across the Americas as a whole, recent economic growth has been encouraging and looks set to remain so in 2018, however, retail real estate trends have varied across the region’s diverse set of markets, according to the report’s author, Darren Yates, Head of EMEA Retail Research, at Cushman & Wakefield.
“While the growth of online retail is a common theme in all of America’s markets, retailing in much of Latin America is still maturing. However, most of the region’s developed cities now have high quality retail developments which cater for a variety of income groups, including a rapidly growing middle class,” Mr. Yates said.
“In the US, while there has been a lot of discussion around store closures, the main high street markets have not been as adversely affected as some of the headlines might suggest. The fact is that most retailers are not turning their backs on high street locations,” he said.
*Below is the Americas’ listing in the ‘Main Streets Across the World’ Global Report
|1||1||New York||USA||Upper 5th Avenue (49th – 60th Sts)||3,000||28,262||3,000||29,065|
|2||2||Los Angeles||USA||Rodeo Drive (Beverly Hills)||875||8,243||800||7,751|
|3||3||San Francisco||USA||Union Square||700||6,594||685||6,637|
|4||4||Chicago||USA||North Michigan Avenue||550||5,181||550||5,329|
|7||7||Washington DC||USA||East End||205||1,931||205||1,986|
|8||9||Palm Beach||USA||Worth Avenue||145||1,366||150||1,453|
|10||11||Montreal||Canada||Saint-Catherine W – Street Level||135||1,272||139||1,343|
|14||16||San Diego||USA||Del Mar Heights Blvd (Suburban Del Mar Heights)||105||989||78||756|
|16||18||São Paulo||Brazil||Oscar Freire Jardins||74||700||73||708|
|17||15||Buenos Aires||Argentina||Calle peatonal Florida. From Av. Cordoba to Av. Corrientes_4 blocks||69||651||81||788|
|18||13||Rio de Janeiro||Brazil||Garcia D’avilla (Ipanema)||61||576||113||1,096|
|19||20||Monterrey||Mexico||Calzada del Valle||56||525||57||551|
|MOST EXPENSIVE LOCATIONS BY COUNTRY|
|Rank 2017||Rank 2016||Country||City||Location||RENT Q2 2017
|RENT Q2 2017
|1||1||USA||New York||Upper 5th Avenue (49th – 60th Sts)||3,000||28,262|
|2||2||Hong Kong||Hong Kong||Causeway Bay (main street shops)||2,725||25,673|
|3||4||United Kingdom||London||New Bond Street||1,719||16,200|
|5||3||France||Paris||Avenue des Champs Elysees||1,407||13,255|
|7||7||Australia||Sydney||Pitt Street Mall||1,000||9,422|
|14||14||Spain||Barcelona||Portal de L’Angel||357||3,360|
|20||20||Luxembourg||Luxembourg City||Grande Rue||274||2,580|
|21||21||Denmark||Copenhagen||Stroget (including Vimmelskaftet)||271||2,555|
|22||23||Czech Republic||Prague||Na Příkopě street||267||2,520|
|23||16||Turkey||Istanbul||Centre – Istiklal Street||245||2,311|
|24||28||India||New Delhi||Khan Market||232||2,191|
|26||27||Vietnam||Ho Chi Minh City||Best Achieved Shopping Mall (GF)||223||2,100|
|27||24||Malaysia||Kuala Lumpur||Pavilion KL (prime lots)||221||2,084|
|34||32||UAE||Dubai||Prime – A||136||1,282|
|35||35||Israel||Tel Aviv||Kikar Hamedina||135||1,280|
|36||37||South Africa||Johannesburg||Sandton City||134||1,265|
|37||36||Thailand||Bangkok||Central Retail District (CRD) (Rajprasong/Sukhumvit street)||128||1,214|
|42||42||Channel Islands||St Peter Port||High Street||89||835|
|45||38||Brazil||São Paulo||Oscar Freire Jardins||74||700|
|47||44||Argentina||Buenos Aires||Calle peatonal Florida. From Av. Cordoba to Av. Corrientes_4 blocks||69||651|
|50||51||Philippines||Taguig (Metro Manila)||Bonifacio High Street||59||559|
|53||52||Ukraine||Kyiv||Kreschatik Street/Gorodetskogo Street||56||525|
|55||55||Latvia||Riga||Kalku St./Valnu St./Audeju St./Terbatas St./Kr.Barona St.||51||480|
|62||66||Tanzania||Dar es Salaam||39||368|
|67||67||Zimbabwe||Harare||Village Walk Borrowdale||28||263|
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients’ ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefield.com or follow @CushWake on Twitter.