Store rents in NY are world's second highest
Gilded 10-block strip of Fifth Avenue running north from Saks ranks second only to Hong Kong's priciest shopping addresses, and is well ahead of rents for prime spots in third-place Paris.
Despite a 22% jump in retail rents along New York City's prime, Fifth Avenue shopping corridor in the last year, the city still finished second in the global rankings, according to a recent quarterly report from CBRE Group Inc.
The top shopping district of Hong Kong, took first place, with rents of $4,328 a square foot, a 12% rise over last year, compared with $3,050 a square foot here. In third place was Paris, where per square foot rents were a relatively paltry $1,220.
"Global retailers continue to desire premier retail locations in gateway cities because of the global shoppers those corridors attract and the value delivered for brand visibility," said Anthony Buono, executive managing director of Americas Retail Services at CBRE, in a statement.
Indeed, New York's Fifth Avenue is the place to be for most brands hoping to cash in on the droves of tourists flooding the strip that runs between Saks Fifth Avenue, at 49th Street, and the Apple store on 59th Street. The city attracted a record 52 million tourists last year, a figure that is expected to increase to 55 million by 2015, according to NYC & Co.
Last year, luxury designer Ralph Lauren signed on for a 38,000-square-foot store at 711 Fifth Ave., the former home of the Disney store, where he plans to house a flagship and a restaurant. Shortly after, Valentino leased 20,000 square feet one block south.
Despite Hong Kong's reign as the most expensive city for retailers, New York still has its fervent retail supporters, who say demand is stronger than ever, especially for Fifth Avenue.
"New York is still the shopping capital even if you're a no-name retailer," said Faith Hope Consolo, executive chairman of retail leasing at Douglas Elliman. "You want to come to this market because you have the opportunity to really grow a brand—this is the city where brands are made."
The top shopping district of Hong Kong, took first place, with rents of $4,328 a square foot, a 12% rise over last year, compared with $3,050 a square foot here. In third place was Paris, where per square foot rents were a relatively paltry $1,220.
"Global retailers continue to desire premier retail locations in gateway cities because of the global shoppers those corridors attract and the value delivered for brand visibility," said Anthony Buono, executive managing director of Americas Retail Services at CBRE, in a statement.
Indeed, New York's Fifth Avenue is the place to be for most brands hoping to cash in on the droves of tourists flooding the strip that runs between Saks Fifth Avenue, at 49th Street, and the Apple store on 59th Street. The city attracted a record 52 million tourists last year, a figure that is expected to increase to 55 million by 2015, according to NYC & Co.
Last year, luxury designer Ralph Lauren signed on for a 38,000-square-foot store at 711 Fifth Ave., the former home of the Disney store, where he plans to house a flagship and a restaurant. Shortly after, Valentino leased 20,000 square feet one block south.
Despite Hong Kong's reign as the most expensive city for retailers, New York still has its fervent retail supporters, who say demand is stronger than ever, especially for Fifth Avenue.
"New York is still the shopping capital even if you're a no-name retailer," said Faith Hope Consolo, executive chairman of retail leasing at Douglas Elliman. "You want to come to this market because you have the opportunity to really grow a brand—this is the city where brands are made."
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