San Francisco holds firm at no. 3 spot from last year – New York’s 5th Ave takes first place, LA’s Rodeo Drive no. 2 as highest retail rents in Americas
SAN FRANCISCO, Calif. November 14, 2017 – Cushman & Wakefield has announced the 29th edition of its global flagship report, ‘Main Streets across the World’, and within the Americas – San Francisco’s Union Square is listed as the third most expensive location.
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 Vice Chairman, Kazuko Morgan, based in San Francisco, said San Francisco’s Union Square retail district is recognized as one of the world’s premier shopping destinations such as Fifth Avenue, Rodeo Drive, Champs-Elysees, Bond Street, Rue du Faubourg Saint-Honoré, and the Ginza District.
“With the strong local economy and continued dominance as the tech capital of the world combined with the influx of tourists to San Francisco, investors continue to clamor for retail real estate assets in Union Square,” Ms. Morgan said. “Very few areas in San Francisco or the United States offer a comparable level of density and access to such a large complement of restaurants, shops, convention and entertainment centers, and fine hotels – all conveniently located within walking distance.”
“The world-renowned luxury retailer, Tiffany & Co, is located directly on Union Square at 360 Post Street, adjacent to Saks Fifth Avenue and Apple’s flagship store on 300 Post Street has doubled traffic to the area since it opened last year,” Ms. Morgan said.
Access to mass transit is a key consideration for San Francisco’s retailers and office tenants and Union Square has direct access to multiple public transportation options. The Powell Street BART/MUNI station and San Francisco’s famous Powell Street cable car are within a short walk. The new Central Subway line (scheduled for completion in 2019) is also steps away.
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.