Passeig de Gràcia in Barcelona remains the street with the highest retail rents in Spain, according to the 34th edition of Cushman & Wakefield's Main Streets Across the World report, which analyses prime retail street rents in 92 cities around the world. This year, Passeig de Gràcia has climbed from 17th to 16th place in the global ranking, with a prime rent of 3,180 euros per sqm per year, an increase of 6% over the previous year.
Passeig de Gràcia is home to luxury brands such as Dior, Versace, Loewe and Prada, with a dynamism and relevance that clearly consolidate it as one of the most emblematic prime shopping streets globally. On the other hand, Calle Serrano, in Madrid, is close behind, with rents of 3,060 euros per sqm per year, 4% more than the previous year. This growth, driven by large luxury firms, has allowed Serrano to position itself in 28th place in the European ranking, only one position behind Passeig de Gràcia, which occupies 27th place.
In third position in Spain, with a prime rent of 3,000 euros per sqm per year, are Portal de l'Àngel, also in Barcelona, and Gran Vía, in Madrid. Preciados, in Madrid, is in fourth position, with 2,940 euros per sqm per year, while José Ortega y Gasset, also in the capital, is in fifth position, with 2,880 euros per sqm per year.
Outside Madrid and Barcelona, Marqués de Larios, in Málaga, is in sixth position with a prime rent of 2,400 euros per sqm per year. It is followed by Fuencarral, in Madrid (2,100 euros per sqm per year), in seventh position, and Colón, in Valencia (1,560 euros per sqm per year), in eighth position.
Gran Vía de Bilbao and Tetuán, in Seville, share ninth position with 1,500 euros per sqm per year, while Goya, in Madrid, occupies tenth position with 1,440 euros per sqm per year.
In the following positions are Pelayo, in Barcelona (1,380 euros per sqm per year, 11th position), Jaime III, in Palma de Mallorca (1,260 euros per sqm per year, 12th position), and Plaza de la Independencia, in Zaragoza, which shares 13th position with Rambla Catalunya and Avenida Diagonal, both in Barcelona, with 1,020 euros per sqm per year. Finally, Portaferrisa, in Barcelona, closes the list with a prime rent of 960 euros per sqm per year.
Via Montenapoleone: the most expensive street in the world
The 34th edition of the Main Streets Across the World report has, for the first time, ranked a European street as the most expensive in the world in terms of commercial rent. Italy's Via Montenapoleone in Milan tops the ranking with a rent of 20,000 euros per sqm per year, an increase of 11% over the previous year.
In second place is New York's Fifth Avenue, with rents of 19,537 euros per sqm per year, followed by New Bond Street in London, which is in third place with 17,210 euros per sqm per year after registering an increase of 13%. The latter has displaced Tsim Sha Tsui in Hong Kong, which falls to fourth place overall with a rent of 15,697 euros per sqm per annum.
Closing the Top 5 is Paris' Champs-Élysées, with rents of 12,519 euros per sqm per year, a 10% increase on the same period last year.
The report, which analyses prime shopping streets in 92 cities around the world, highlights the dynamism of these locations, which reflect both the demand for emblematic retail spaces and the growth trends in the sector globally.
In this regard, data from Cushman & Wakefield's latest report demonstrates how retailers around the world are continuing to focus on having a physical presence for their brands in iconic and super-prime locations globally, which are characterised by high competition for space and very limited supply.
Robert Travers, Head of Retail EMEA at Cushman & Wakefield, says: ‘Brands are opting for physical shops in the world's best locations. This is due to the competition for consumers‘ attention, driving the need for a superior shopping experience, as well as a better product display and in-store experience’. He adds that ‘while e-commerce plays a huge role in an omni-channel strategy, it is the physical representation of the brand that really establishes a bond with customers. As a result, prime high street availability remains exceptionally low, which translates into high prime rents that retailers are willing to pay to secure and maintain their space’.
