Bond Street in London is the new entry in the podium of the highest rents globally, after overtaking the Champs Elysées in Paris.
Property firm Cushman & Wakefield released the new list this week and said that Upper Fifth Avenue in New York stays top ($3,000 per square foot) with Hong Kong’s Causeway Bay next ($2,725). After Bond Street ($1,720) is Milan’s Via Montenapoleone, with the Champs Elysées now in fifth place.
Bond Street rents raced ahead by almost 40% in the year 2017 to June as demand stayed strong despite fears over Brexit. In fact, the Brexit effect could have been partly responsible for the rise with a tourist surge as international visitors took advantage of the weak pound after the Brexit vote.
Report author Darren Yates of Cushman & Wakefield’s Darren Yates said: “London’s major thoroughfares are some of the most desirable and expensive streets in the world. Although there was a pause in activity in London in the initial aftermath of the EU referendum, the start of 2017 brought a resurgence in leasing deals.”
There had been fears this summer that some luxury brands would quite the area as it had become so expensive with Colliers International telling The Guardian that a number of Bond Street leases were being “quietly marketed”.
Dolce & Gabbana, Hugo Boss, De Beers and DKNY were among the big names said to be looking at a move.
But Yates said he hasn’t seen any signs of big brands wanting to move, although he added that with the property market slowing, they are probably less likely now to want to hand over million of pounds to encourage an existing tenant to move as they have done in the past.
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A new report from Savills earlier this year showed that Bond Street is evolving into a home for ultra-luxury brands with fewer affordable luxury or premium labels occupying stores there.
Super-luxury retailers now occupy 73.9% of its retail space, up from 62.8% over the last five years, and following the launch of the report, Savills said it would see a further 12 new stores by year-end, a high number and on a level with the peak reached in 2012.
The newcomers include several ultra-luxury names (Alaïa, Delvaux and Officine Panerai).