CONTENTS

01
02
03

GLOBAL RETAIL RENTS

GLOBAL RETAIL TRENDS

MARKET SUMMARIES

01
GLOBALRETAIL RENTSGLOBAL RETAIL RENTS
THE KEY FIGURESRENT Q2 2019
RANK
2019

RANK
2018 MARKET

US$/SQ.FT/
YEAR€/SQ.M/
YEAR

LOCAL
RENTS
Jun 2019

CITY

LOCATION

Hong Kong

Causeway Bay

2,745

25,965

1,787

New York

2,250

21,295

2,250

1,714

16,222

2,250

1,478

13,992

19,000

1,447
1,251
1,076
866
862
513
471
469
401
361
361
312
301
298
288
243

13,70011,838
10,185
8,195
8,163
4,860
4,453
4,440
3,794
3,420
3,420
2,957
2,850
2,820
2,728
2,302

13,700400,000
16,5009,100
893,091
405
2,900
370
6,750
285
285
35
2,850
235
196,000
1,400

1

1

Hong Kong,
China

2

2

USA

3

3

United Kingdom London

4

4

France

Paris

5

5

Italy

Milan

Upper 5th Avenue(49th - 60th Sts)
New Bond Street
Avenue des Champs
Elysees
Via Montenapoleone

6

6

Japan

Tokyo

Ginza

7

7

Australia

SydneyPitt Street Mall

8

9

Switzerland

ZurichBahnhofstrasse

98South Korea

Seoul

Myeongdong

10

10Austria

ViennaKohlmarkt11

11

Mainland China

Beijing

Wangfujing

1212Germany

MunichKaufinger/Neuhauser

13

13

IrelandDublinGrafton Street

1415

GreeceAthens

Ermou

14

14

Spain

Barcelona

Portal de L'Angel

16

17

Singapore

Singapore

Orchard Road

17

16

Netherlands

Amsterdam

Kalverstraat

18

19

Czech Republic

PragueNa Příkopě

19

18

RussiaMoscow

Stoleshnikov

20

21

India

New Delhi

Khan Market

A complete list of global retail rents can be found at the end of the slide deck,
after the Market Summaries.

Cushman & Wakefield | Main Streets 2019

Data relates to prime retailrents in €/sq.m/year
Rank 2019
Rank 2018

3

GLOBAL RETAIL RENTS
REGIONAL ANALYSIS – EUROPE, MIDDLE EAST & AFRICAEMEA KEY FACTS
MOST EXPENSIVERETAIL LOCATION
London's New Bond Street,
United Kingdom
US$1,714/sq.ft/yr€16,222/sq.m/yr
MOST AFFORDABLERETAIL LOCATION
Abu Dhabi, C, UAE
US$18/sq.ft/yr€171/sq.m/yr

MOST EXPENSIVE LOCATIONS BY CITY
2019

2018

1
2

2019 RENTUS$/
SQ.FT/YR

2019 RENT€/SQ.M/YR

2018 RENTUS$/
SQ.FT/YR

2018 RENT€/SQ.M/YR

CITY

MARKET

DISTRICT

1

LondonUnited Kingdom

New Bond Street

1,714

16,222

1,744

16,071

2

Paris

FranceAvenue des Champs Elysees

1,478

13,992

1,519

13,992

3

3

Milan

Italy

Via Montenapoleone

1,447

13,7001,466

13,500

4

4

Rome

Italy

Via Condotti

1,321

12,5001,249

11,50055Zurich

Switzerland

Bahnhofstrasse

866

8,195

854

7,872

6

6

VeniceItaly

Calle San Moisè

761

7,200

651

6,000

7

8

Florence

Italy

Via Roma

666

6,300

630

5,800

8

7

CannesFranceLa Croisette

622

5,891

640

5,891

9

9

ViennaAustria

Kohlmarkt

513

4,860

515

4,740

10

10

MunichGermany

Kaufinger/Neuhauser

469

4,440

482

4,440

11

11

DublinIreland

Grafton Street

401

3,794

412

3,794

12

12

BerlinGermany

Tauentzienstrasse

393

3,720

410

3,780

STRONGEST RENTAL GROWTH

12

13Frankfurt

Germany

Zeil

393

3,720

404

3,720

Windhoek, Namibia+38.9%

14

13

Hamburg

Germany

Spitalerstraße

387

3,660

404

3,720

15

17

GenevaSwitzerland

Rue de Rhone

381

3,602

375

3,460

16

16

Dusseldorf

Germany

Konigsallee

368

3,480

378

3,480

16

15

CologneGermany

Schildergasse

368

3,480

384

3,540

18

21

AthensGreece

Ermou

361

3,420

326

3,000

18

18

Barcelona

Spain

Portal de L'Angel

361

3,420

365

3,360

20

20

MadridSpain

Serrano

349

3,300

345

3,180

BIGGEST RENTAL DECLINE
Dar es Salaam, Tanzania-35.7%

Cushman & Wakefield | Main Streets 2019

4

GLOBAL RETAIL RENTS
REGIONAL ANALYSIS – AMERICASAMERICAS KEY FACTS
MOST EXPENSIVERETAIL LOCATIONNew York's Upper 5th Avenue(49th - 60th Sts), USA
US$2,250/sq.ft/yr€21,295/sq.m/yr
MOST AFFORDABLERETAIL LOCATION
Calgary, 17th Avenue SW, Canada
US$29/sq.ft/yr€275/sq.m/yr

MOST EXPENSIVE LOCATIONS BY CITY
2019

2018

CITY

MARKET

DISTRICT

1

1

New York

USA

Upper 5th Avenue (49th - 60th Sts)2

2

Los Angeles

USA

Rodeo Drive (Beverly Hills)

BIGGEST RENTAL DECLINE
Washington DC, Penn Quarter, USA-25.0%

Cushman & Wakefield | Main Streets 20192019 RENT€/SQ.M/YR

2018 RENTUS$/
SQ.FT/YR

2018 RENT€/SQ.M/YR

2,250

21,2952,250

20,733

895

8,471

875

8,063

3

3

San Francisco

USA

Union Square

650

6,152

700

6,450

4

4

ChicagoUSA

North Michigan Avenue

400

3,786

450

4,147

5

5

Miami

USA

Lincoln Road

220

2,082

250

2,304

6

6

TorontoCanadaBloor Street

206

1,952

229

2,106

7

9

Vancouver

CanadaRobson Street

153

1,446

139

1,281

8

8

Palm Beach

USA

Worth Avenue

150

1,420

150

1,382

9

7

Washington DC

USA

Georgetown

140

1,325

145

1,336

10

10

Montreal

CanadaSaint-Catherine West

134

1,265

133

1,228

11

11

Philadelphia

USA

Walnut Street

130

1,230

125

1,152

105

994

105

968

12

12

San Diego

USA

Del Mar Heights Blvd
(Suburban Del Mar Heights)

13

13

Mexico City

MexicoMasaryk

97

918

103

945

STRONGEST RENTAL GROWTH
Bogotá, Zona Rosa (*Ex- Zona T),
Colombia+62.5%

2019 RENTUS$/
SQ.FT/YR

14

14

BostonUSA

Newbury Street

90

852

100

921

15

15

SeattleUSA

CBD/Core

78

738

75

691

16

20

BogotáColombia

Zona Rosa (*Ex- Zona T )

72

686

45

411

17

18

São Paulo

BrazilOscar Freire Jardins

69

658

63

583

18

16

Buenos Aires

Argentina

Calle peatonal Florida. From Av. Cordoba to
Av. Corrientes_4 blocks

67

633

75

688

19

17

Rio de Janeiro

BrazilGarcia D'avilla (Ipanema)

63

592

72

663

20

n/a

Santiago

Chile

Providencia/Avenida Providencia 1822-2382

55

522

n/a

n/a

5

GLOBAL RETAIL RENTS
REGIONAL ANALYSIS – ASIA PACIFIC
ASIA PACIFIC KEY FACTS
MOST EXPENSIVERETAIL LOCATION
Hong Kong's Causeway Bay
US$2,745/sq.ft/yr€25,965/sq.m/yr
MOST AFFORDABLERETAIL LOCATION
Hyderabad, Raj Bhavan
Road/Somajiguda, India
US$16/sq.ft/yr€148/sq.m/yr

MOST EXPENSIVE LOCATIONS BY CITY
2019

2018

1
2

2019 RENTUS$/
SQ.FT/YR

2019 RENT€/SQ.M/YR

2018 RENTUS$/
SQ.FT/YR

2018 RENT€/SQ.M/YR

CITY

MARKET

DISTRICT

1Hong Kong

Greater China

Causeway Bay

2,745

25,9652,671

24,606

2

Tokyo

Japan

Ginza

1,251

11,838

1,219

11,232

1,076

10,185

964

8,882

938

8,878

914

8,424

3

3

SydneyAustralia

Pitt Street Mall

4

4

Osaka

Japan

Shinsaibashisuji/Midosuji

5

5

Seoul

South Korea

Myeongdong

862

8,163

908

8,364

6

6

Beijing

Greater China

Wangfujing

471

4,453

492

4,532

7

7

Melbourne

Australia

Bourke Street

457

4,321

482

4,441

8

8

ShanghaiGreater China

West Nanjing Road

394

3,726

403

3,706

9

10

Singapore

Singapore

Orchard Road

312

2,957

304

2,806

10

9

Brisbane

Australia

Queen Street Mall

294

2,778

310

2,855

11

11

ShenzhenGreater China

Luohu

276

2,611

281

2,587

12

12

New Delhi

India

Khan Market

243

2,302

237

2,186

STRONGEST RENTAL GROWTH

13

13

Guangzhou

Greater China

Tianhe Sports Centre

242

2,293

224

2,066

Chennai, Anna Nagar
2nd Avenue, India+25.0%

14

14

Kuala Lumpur

Malaysia

Suria KLCC

232

2,194

223

2,058

15

15

TaipeiGreater China

Ximen

217

2,053

205

1,887

16

16

Ho Chi Minh City

VietnamBest Achieved Shopping Mall (GF)

184

1,741

190

1,746

142

1,345

132

1,219

BIGGEST RENTAL DECLINE
Taguig (Metro Manila),
Bonifacio High Street, Philippines-28.6%
Cushman & Wakefield | Main Streets 201917

22

BangkokThailandCentral Retail District (CRD)(Rajprasong/Sukhumvit street)

18

18

Hanoi

VietnamBest Achieved Shopping Mall (GF)

139

1,319

145

1,336

19

19

Mumbai

India

Linking Road, Western Suburban

139

1,316

137

1,263

20

17

Nanjing

Greater China

134

1,272

154

1,419

6

02
GLOBALRETAIL TRENDSGLOBAL RETAIL TRENDS

RAPID GROWTH
OF ONLINEFLEXIBILITY –SPACE AND LEASESINCREASING
POLARISATIONEVOLUTION OF
SHOPPER MISSIONSGROWTHOF MIXED-USE

SEISMIC CHANGESDRIVING INNOVATIONIMPORTANCEOF TECHNOLOGYSOCIAL, ETHICAL &ENVIRONMENTAL ISSUES

Cushman & Wakefield | Main Streets 2019

8

GLOBAL RETAIL TRENDS
ONLINE RETAIL SALES ARE GROWING RAPIDLY
Bar chart showing UK Internet
Sales as a % of Total Retail Sales
and flags denoting the approximate
shares of online in a select numberof markets.
In many markets, national
statistical offices do not collect online
sales data, while definitions andmethodology can vary.

< 5%

5-10%

10-15%

15-20%

30

25

20

% 15

10

5

Sources: Office for National Statistics, National
Statistical Offices, Cushman & Wakefield Estimates.
Forecasts for UK online sales are estimates based on
the current growth rates for online and total retail sales
and how this trend may evolve in the next decade.

Cushman & Wakefield | Main Streets 2019

0
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020 E2025 E2030 E

9GLOBAL RETAIL TRENDS
ONLINE RETAIL – IT CAN BE DIFFICULT TO QUANTIFY THE VALUE OF THE STORE IN TODAY’S OMNI-CHANNEL WORLD

Not All ‘Online’ Sales Take
Place Exclusively Online…

The ‘Halo Effect’ –Stores Can Help Drive Online Sales Within Catchment
180%
160%
140%
120%
100%
80%
60%
40%
20%

Pure Online

Showrooming

Inspired by a store

Click & Collect0%

Source: CACI 2019

Cushman & Wakefield | Main Streets 2019

Homewares

Leisure Goods

Sportswear

FashionConsumer Electronics

Average

Source: CACI 201910

GLOBAL RETAIL TRENDS
ONLINE RETAIL – THE INTERNET HAS OPENED UP MASSIVE OPPORTUNITIES FOR RETAILERS AND BRANDS
Retail E-Commerce Sales Worldwide, 2014-2023
7,000

6,000

US$ billion

5,000

4,000

3,000

2,000

1,000

0
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Source: Statista

Cushman & Wakefield | Main Streets 201911

GLOBAL RETAIL TRENDSFROM ONLINE TO OFFLINE, MORE DIGITALLY NATIVE STORES TAKING PHYSICAL SPACE

Cushman & Wakefield | Main Streets 201912

GLOBAL RETAIL TRENDS
MORE FLEXIBILITY IN TERMS OF FLOORSPACE AND LEASES, WITH GREATER COOPERATION BETWEENRETAILERS AND LANDLORDSCONTINUED GROWTH
IN FLEXIBLE SPACEEVOLUTION OF
LEASING MODELLANDLORD & RETAILERCOOPERATION

Cushman & Wakefield | Main Streets 201913

GLOBAL RETAIL TRENDSNOT ALL RETAIL IS EQUAL AND THE MARKET HAS BECOME INCREASINGLY POLARISED
Increasing Polarisation

COUNTRIESCITIESSECTORS

Rental Trends by Region(based on % of locations)
100%
80%
60%
40%
20%
0%
2017 2018 2019 2017 2018 2019 2017 2018 2019
Asia Pacific
Growing

EMEA
StableCushman & Wakefield | Main Streets 2019

AmericasDeclining

14

GLOBAL RETAIL TRENDS
RETAIL WILL BE INCREASINGLY DEFINED BY THE SHOPPING MISSIONDESTINATIONPURPOSECONVENIENCE

Less frequent trips which areprimarily focused on spending
a day out in a location.

Fairly frequent trips fora specific purpose.

Short but more frequent trips,
normally for a ‘top-up’ shop.

ExamplesExamplesExamples• Grocery/Food Stores• In-town food stores• Outlet Centres• Retail Parks/Strip Centers• Newsagents• Regional Shopping Centres• High Street – small cities/towns• Large City Centres

Cushman & Wakefield | Main Streets 201915

GLOBAL RETAIL TRENDS
WHEREVER YOU LOOK, MIXED-USE IS INCREASINGLY A COMMON THEME...

BATTERSEA POWER STATIONLONDON, UK

MOSHIDA PLAZASHANGHAI, CHINA

Cushman & Wakefield | Main Streets 2019

BARANGAROOSYDNEY, AUSTRALIAGRAND HOTEL DIEU
LYON, FRANCEPAARIJAT ECLAT & PRIVILON
AHMEDABAD, INDIA

THE UNIONDALLAS, USA

Y2 PROJECTTOKYO, JAPAN16

GLOBAL RETAIL TRENDSSEISMIC CHANGES IN RETAILING ARE DRIVING INNOVATION, LEADING TO NEW FORMATS & CONCEPTS
GALERIES LAFAYETTEFRANCE, PARISSTARBUCKS NOWCHINA, BEIJING

Hybrid retail model with more than 660
brands, smart hanger technology, offering
food court services and used for hosting
fashion shows and other events.

First ‘Starbucks Now’ retail format, which
combines the signature Starbucks café
environment with Mobile Order & Pay andStarbucks Delivers customer experiences.

BOOTS
UK, LONDONMCDONALD'S TO GO
UK, LONDONThe 2,600 sq.m new-look flagship store
focused on wellness and exciting new
beauty brands.

A new grab and go format with no seating
area, smaller self-order screens and reduced
menu of freshly prepared products.

LULULEMON
USA, CHICAGO

LUSHTOKYO, JAPAN

Experiential store with a restaurant, yoga andmeditation space, and a concierge desk.

The largest Asian flagship store in Tokyo.
Offering interactive experiences, dynamic
design and innovative technology.

GALERIES LAFAYETTEAESOPAUSTRALIA, SYDNEY
A global flagship store with an amphitheatre
where shoppers can watch an Aesop film or
sit and relax.

BOOTS

Cushman & Wakefield | Main Streets 201917

GLOBAL RETAIL TRENDSTECHNOLOGY IS INCREASINGLY IMPORTANT IN DRIVING CUSTOMER ENGAGEMENTSAMSUNGNATUZZI ITALIA

DELIVEROO

UK, LONDON

USA, NEW YORKSINGAPORE, ALICE@MEDIAPOLIS

The 1,900 sq.m store (digital platform) with the latest cuttingedge technology, where visitors can take part in a series of
events, workshops and performances.

Natuzzi’s augmented store is combining technological solutions
like virtual and augmented reality, holographic display, advanced
3D modelling and interactive product configurator to offer anengaging and exciting shopping experience.

Deliveroo rolls out futuristic ‘food market’ in Singapore,
powered by a fully-automated dining experience. It is thelargest and most advanced site yet.

Source: https://www.samsung.com

Source: https://www.natuzzi.us

Source: https://sg.deliveroo.news/

Cushman & Wakefield | Main Streets 201918

GLOBAL RETAIL TRENDS
EVER INCREASING IMPORTANCE OF SOCIAL, ETHICAL AND ENVIRONMENTAL ISSUESADIDAS PARLEY

STELLA MCCARTNEYVERSACETACKLING OCEAN PLASTICA FLAGSHIP STORE IN LONDONLEED CERTIFIED STORE IN BEIJING

Shoes made from upcycled ocean plastic waste collected fromremote islands, beaches and coastal communities.

incorporating sustainability, fashion and luxury.

built using materials and fixtures with the ‘highest sustainability
standards in mind’.

Source: www.adidas.com

Source: Stella McCartney

Source: Versace

Cushman & Wakefield | Main Streets 201919

OUTLOOK FOR RETAIL

Physical retailwill survive!

Further shift
to online& omni-channel

Cushman & Wakefield | Main Streets 2019

Retailers need
fewer stores

Experience,
purpose& convenience

Technology
to drivecustomerengagement

Moving into
‘beyond retail’
phase

20

03
MARKET
SUMMARIESEUROPE, MIDDLE
EAST & AFRICAMARKET SUMMARIESEUROPE, MIDDLE EAST & AFRICABELGIUM

BULGARIA

DENMARKThe main trend has been a marginal decrease inprime rents in the major cities, with a growing
polarisation between prime and secondary
locations and small and larger units. A numberof opportunistic retailers have been successful
at renegotiating rents in the best locations, whilelarger units are increasingly difficult to let. The
Food & Beverage sector is extremely active andthe wider market is seeing considerable
innovation, with the emergence of new formats,concepts and technologies. While Belgian retailis undergoing structural change, it is clear thatthe physical store will continue to play a majorrole in the retail landscape.

Driven by tenant activity and a limited number of
new projects in 2018 and 2019, headline rents in
Sofia have continued to increase in both
shopping centres and the major high streets.
Much of the market is focused on shopping
centres and the restructuring of a number ofschemes has created opportunities for new
brands to expand. Main streets remain attractive
mostly for cafés and restaurants, as well as
flagship stores. Active sectors include grocery,
home décor, fashion and footwear.

Currently, the Danish retail market is
experiencing a period of stagnation, with a large
degree of caution among occupiers who are lesswilling to take risks. However, general interest
remains fairly solid. Landlords are so far
resisting retailer pressure to drive down
occupational costs and, as a result, leasing
volumes have decreased. There is therefore a
gap between retailer and landlord expectations,but the market has yet to see a significant
adjustment in rental levels.

CZECH REPUBLIC

FINLAND

The Czech market continues to attract newinternational brands, notably in the clothing andF&B sectors. Shopping centre development
remains limited and focused on refurbishments,
which is maintaining a healthy balance between
supply and demand. The market is approaching
maturity and its remaining potential is largely inmixed-use developments, downtown and public
transport hubs.

Key recent trends include strong demand for prime
locations and the ongoing change in tenant mix tofocus more on retail services such as F&B, health& beauty and well-being. While an influx of new
supply may put rents under pressure in the shortterm, the longer-term demographic andexpenditure forecasts for the Helsinki Metropolitan
Area (HMA) are positive and should allow themarket to absorb the new space.

Cushman & Wakefield | Main Streets 201923

MARKET SUMMARIESEUROPE, MIDDLE EAST & AFRICA
FRANCEGREECEIRELAND

Occupier interest for prime space remains
relatively robust and rents are well-supported in
Paris and other large cities, particularly for smaller
units. However, demand for second tier locations –where footfall has been declining – has becomemuch more selective and this is expected to impact
on values. Rents for medium and larger units
outside of the major cities look most at risk of amark down, given that supply generally outweighs
demand for this kind of stock.

Recent activity has been driven mainly byfashion-related and F&B operators, with thelatter comprising mostly local brands. Primerents are stable, with retail supported by asteadily improving economic backdrop, risingconsumer spending and a buoyant tourism
sector. Particularly significant spending
increases have been seen in outlet centres –around 35% – indicating a general trend towards
cheaper but branded markets.

GERMANYHUNGARY

Retail sales forecasts are generally upbeat, butthere are concerns over the economic outlook, notleast with respect to international trade and theongoing restructuring in the car industry. Structuralchange continues to impact the retail sector
meanwhile, with the growth of online andconsumers’ increasing expectations around the
shopping experience putting retailers underpressure. Demand from fashion operators remains
strong and there have been recent new entrants
from the US, Netherlands and Italy. Other active
sectors include F&B, specialised food and nonfood stores, fast moving consumer goods andhealth & beauty, fitness and wellbeing.

Hungary’s recent strong economic performancehas filtered through to the retail property market
which, together with growing tourism, hassustained occupier demand for prime locations.
In addition, the limited amount of new
development in the last few years has helped toboost rents in the main high streets. As with
Western Europe, the ‘experiential’ aspect ofretailing is becoming increasingly important andthere is a strong focus on F&B and leisure.

Recent activity has been focused on Dublin, withthe majority of openings being Food & Beverage(F&B) across the prime high streets and major
shopping centres. While the impact of ongoing
Brexit negotiations is being felt, demand forretail space remains healthy, including fashionand leisure as well as F&B. Indeed, the leisuresegment continues to evolve quickly and several
UK and European operators are seeking spacein Dublin. On a cautious note, the retail market isgoing through seismic change and there is‘noise’ from a number of retailers about thepossibility of using the CVA process to reduce
store numbers and work towards a leaner costbase, in tandem with developing a more multichannel approach.

Cushman & Wakefield | Main Streets 201924

MARKET SUMMARIESEUROPE, MIDDLE EAST & AFRICAITALY

NETHERLANDSPOLAND

Retailer demand is polarized between luxury
brands still eager to take space in the top
locations and the more mass-market brands
who are realigning their store networks to face
the challenges posed by the growth of online.
Overall, this has dampened activity in the moresecondary high streets, while larger units areexperiencing longer vacancy periods both inprime and secondary locations. Indeed, where
possible, landlords are breaking down units into
smaller spaces. The F&B segment continues togrow, while consumers increasingly appreciatehigh quality store design and stylish interiors.

Despite the buoyant economy, rising wages andimproved consumer spending, the retail sector has
experienced a more lacklustre performance and anumber of retailers went into administration in thefirst half of 2019. New entrants to the market arefocusing on the top 5 to 10 retail locations in the
country, rather than pursuing a strategy ofnationwide coverage. This is reflected in the
difference in availability, with smaller towns seeing
a higher proportion of empty shops.

The Polish market remains buoyant, as
demonstrated by the continuing influx ofinternational retailers. Development activity has
also remained strong, although the focus has
switched from the larger cities to smaller urban
centres, with over 40% of this year’s supply
scheduled to be delivered in cities with less than
200,000 inhabitants. Mixed-use schemescombining residential, retail, services, F&B,
cultural, entertainment and office functions arealso increasing, with three such projects
expected to open in Warsaw in the next
two years.

LUXEMBOURG
Activity on the high street has been more muted
than for shopping centres and retail parks andprime rents have recently softened, with asignificant proportion of demand having beenabsorbed by Galeries Lafayette and the Cloched’Or shopping centre. However, the opening of
the Royal Hamilius development in 2019 is
expected to give a boost to rents in the medium
term, while the recently opened Cloche d’Or
scheme has led to increased leasing activity,with more than 100 retail units complementing
the Auchan supermarket.

Cushman & Wakefield | Main Streets 2019

NORWAYThe retail market in Norway remains
challenging, but demand for space on the mainstreets has stabilized. Occupancy rates in prime
locations are high, but secondary locations areexperiencing rising vacancy and downward
pressure on rents. F&B continues to account fora growing proportion of the occupier base, but
the expansion of the sector is beginning to slow.
Retailers are divided in to two main camps:
retailers who are adapting to the shift inconsumer buying patterns, and those who have
not quite managed to innovate and develop
concepts to face the current challenges.
Norway’s retail market is undergoing acomprehensive structural change, but it is clearthat consumers will still want to shop in physicalstores and that retail is not experiencing a socalled ‘apocalypse’.

PORTUGAL
Occupier activity in 2019 has been strong, witha healthy number of leasing transactions and acontinuing flow of new international brands into
the market. High street retail accounted 67% ofdeals in the first nine months of the year, withrestaurants the most active sector accounting for
55% of deals, followed by fashion with 13%.
High street retail has experienced a resurgencein recent years, helped by a shortage of space inthe main shopping centres, which are alsoseeing a positive performance on the back of
refurbishments and expansion.

25

MARKET SUMMARIESEUROPE, MIDDLE EAST & AFRICA
ROMANIARUSSIASPAIN

New development has been a major driver of the
Romanian market in 2019, with developers
expected to add a total of 140,000 sq.m in theform of new schemes or extensions during theyear. The new space will be delivered in major
cities, including Bucharest and Timisoara, and insmaller cities such as Sibiu, Satu Mare andZalau. South African developers remain themost active, including NEPI Rockcastle, MAS
Real Estate/Prime Kapital and Atterbury (in ajoint-venture with Iulius Group). Strong retailsales growth has prompted activity across all theretail categories, with discounters aiming tocover the smaller cities, while premium fashion
brands have been targeting the dominant
shopping centers in Bucharest and other large
cities, such as Timisoara and Cluj-Napoca.

As with other markets in Central & Eastern
Europe, new development continues apace,notably in and around Moscow. The occupiermarket is active, with many retailers developing
new formats (including online operations andmini formats) and collaborating with otheroperators. Delivery services are becoming
a key feature of the retail offer and both offlineand online retailers are expanding existing andcreating new delivery options for customers.
International brands continue to enter themarket, with many new retailers opening theirfirst outlets as a department store concession –a route considered to be lower risk.

Spain has been one of the better performing
retail markets and demand for retail space in thethoroughfares of the major cities remains
buoyant. Rental values in the best locations areat record highs on the back of sustained demand
from traditional retailers, as well as new entrants
such as F&B operators, car manufacturers andtobacco companies offering a ‘brand experience’.
While occupiers are active, many are increasingly
cost-sensitive, even though store sales, online
services and the ‘showroom’ are now seen as
one operation, whereby the return on rent paid ismore difficult to quantify. However, the market isin good health and, while rents are generally
stable, modest growth may yet be seen in thebest high streets.

Cushman & Wakefield | Main Streets 2019SLOVAKIA
Prime rents are stable as the maturing market
leads to greater competition among shopping
centres, which are working increasingly hard tomaintain footfall. The current market is therefore
favourable to tenants and is beginning topolarise, with demand for the best locations still
relatively firm, in contrast to more secondary
locations where activity is much weaker. Key
trends include the expansion and improvementsin the F&B, leisure & entertainment sectors, aswell as a broader offer in retail services.

26

MARKET SUMMARIESEUROPE, MIDDLE EAST & AFRICA
SWITZERLAND
Traditional bricks & mortar retail continues to face
the challenges of the growth in online. However,retailers that have incorporated e-commerce in theirbusiness models are in a position to take advantageof the recent downward adjustment in rents, which
remain under pressure in secondary locations. On a
positive note, with the exception of cities with direct
exposure to cross-border shopping, prime rents
have stabilised and are expected to remainunchanged in the short term. Mainstream
department stores and shopping centres willcontinue to be challenged by the evolving retaillandscape, with consumers now expecting a highquality environment as standard. The mostsuccessful destinations will be those which provide
the right blend of tenants across services, leisureand entertainment, combined with accessibility,
convenience and the integration of technology.

New online retail platforms are entering themarket, which will boost internet sales, while therefurbishment and repositioning of existing
shopping centres will be a key trend going forward.

UK
Recent news on the UK’s retail market has been
largely negative, as a perfect storm of structuralchange, higher costs and Brexit uncertainty
continues to exert pressure on retailers andlandlords. While prime rents in the major cities
have held up relatively well, rents in many
secondary locations are in the process ofrecalibrating to more sustainable levels, as
retailers realign their portfolios to suit the omnichannel world. On a positive note, the current
environment is leading to innovation and thegrowth of exciting new concepts, during what is
an unprecedented period of change for the UK’s
retail landscape.

TURKEYThe economic backdrop has seen a modest
improvement, with a slowdown in the rate of
economic contraction, a more benign inflation
outlook and a reduction in interest rates. As aresult, demand from opportunistic foreign buyers
is expected to accelerate for distressed retailassets. However, continued pressure on
landlords is expected to lead to further rental
falls in line with currency volatility.

Cushman & Wakefield | Main Streets 2019

SOUTH AFRICA
The macro-economic backdrop has affected theretail environment, with households under pressure
from rising living costs and falling disposable
incomes. Political uncertainty before the 2019
elections was also unhelpful, with domestic
operators reducing their footprint while international
tenants were cautious about market entry.

In addition, proptech innovations along withchanging business models have led to reduced
retailer take-up.
Rental levels have therefore been underpressure over the last 12 months and a growing
number of tenants have been requesting
reductions, freezes and lower uplifts. In somecases, shorter lease terms are evident, while
many tenants have signed deals with lower rents
and higher landlord fit-out contributions. Many
retailers are also focused on closing nonprofitable stores, with some large space users
reducing floor space requirements to reduce
occupational costs and boost store profitability.
As a result, availability has risen and landlords
are having to come up with innovative ideas tofill vacant units and drive footfall.
Across the different categories, thegrocery/supermarket sector has performed well,as has the luxury sector, pharmacy and personalcare. The F&B market remains active, with fast
food generally outperforming restaurants,
although consumers have reined back on eatingout. The homewares and furniture markets
remain under pressure. Online sales are
growing, but the South African consumer still
enjoys in-store shopping – with‘shoppertainment’ expected to remain a vital partof shopping centres for the foreseeable future.

27

AMERICASMARKET SUMMARIESAMERICAS
ARGENTINA

BRAZILCANADAThe difficult economic backdrop has meant thatthe retail market has struggled in the last year,with a fall-off in retailer demand leading to
declining rents in the main high streets.
Nonetheless, the occupier market remains
active. Major F&B occupiers are more willing to
relocate in search of lower rents and up-andcoming locations. New ventures such as
breweries or healthy and organic foodrestaurants are also emerging, while demand
from traditional occupiers such as fashion has
tapered off, as many operators reconsider theirbusiness model and customer proposition. The
online market is growing but is not yet large
enough to have a significant impact on bricks
and mortar.

Overall, the economic and political backdrop has
had an impact on the retail sector, including themain high streets. Fragile consumer confidence
has led to greater volatility in sales and a more
uncertain trading environment in the last twelve
months, which has prompted many retailers to
try and reduce minimum rents across thecountry. In many instances, landlords have been
forced to accept this in order to keep tenants –although they have also been asking for higher
variable rents.

Prime high street rents in Canada havegenerally remained stable over the past year.
In addition to the rapid growth of online sales,rising real estate prices, elevated construction
costs and higher property taxes are making it
tough for retailers to turn a profit in markets suchas Toronto and Vancouver. As a result, tenants
are looking much more critically at location andpricing, and this is driving demand for spacewithin up-and-coming markets where gross rents
are more competitive. The rental differential
between prime and good secondary locations istherefore narrowing.

Cushman & Wakefield | Main Streets 2019

On a positive note, the prime street Oscar Freire
has been relatively immune from these trends.
Indeed, all the key streets in Brazil’s largest city
– Oscar Freire, Haddock Lobo and Alameda
Lorena – have recently seen a solid level ofleasing activity, with a variety of domestic andinternational brands in the clothing, footwear andF&B sectors all opening stores. In addition, themajor household appliance retailers are
expanding their store presence. Looking
forward, the economic outlook is steadily
improving and growth in jobs and consumer
spending should filter through to the retail sector
in the coming months.

Off-price retailers such as Winners, HomeSense
and Saks Off 5th continue to expand and anumber of Asian retailers including MUJI,
UNIQLO and new arrival Tan Mujiang (China)
are also extending their presence. Canada also
remains a key target for luxury brands, notably
Bloor Street and the Yorkdale Shopping Centre,
both located in Toronto. Retailers and landlords
are rethinking business strategies and will focus
increasingly on experiential retail, high-end
restaurants and entertainment, with a growing
number of schemes now also including a
residential component.

29

MARKET SUMMARIESAMERICAS
CHILE
While the civil unrest has dominated the recent
headlines, Chile’s retail market remains buoyant
on the back of a solid economic performance. In
Santiago, a growing population has also
underpinned demand, helped by a good qualitytransport system which boosts the number ofcity centre workers and shoppers. F&B andboutique shops have been the most active
occupiers in the last year. Online sales are
growing but still only account for around 6% of
the total, so the impact on the market has so far
been limited. Overall, the market is expected toremain stable, with key economic indicators
generally supportive.

COLOMBIA
Despite a reasonably solid economic
performance, retail rents have shown limited
movement in what is currently a tenant-friendly
market. Retailers have been working together
with brands in the same parent company which
has boosted their negotiating power. As a result,
this has prompted landlords and developers tooffer preferential rates.

Cushman & Wakefield | Main Streets 2019Market activity has been driven by valuefocused retailers (Latt Liv, Miniso, Casa Ideas,
Decathlon, Dollarcity), and brands with fresh andexperiential concepts which provide a high levelof customer service. Colombian consumers are
price sensitive and look for products andservices to fit their budgets, so retailers tend tonegotiate hard with landlords in order to reduce
operational costs. The F&B segment is currently
enjoying a boom, with many new local brands
emerging, focused on the cheaper high street
locations. This has led to improvements in theoverall F&B offer, while also generatingcompetition for the established operators.
Online sales are growing but account for only asmall proportion of retail sales. Consumers have
yet to become fully comfortable with buying
online, largely because of concerns aroundreliability, limited use of credit and debit cards
and product guarantees. However, theimportance of the customer ‘experience’ isgrowing and locations which offer an all round
shopping and leisure experience for families are
in demand.

MEXICO
Rents have generally been edging down in thelast year as a result of weaker demand,
particularly at the luxury end of the market. The
number of new entrants has declined and larger
retailers have scaled back their expansion plans.
The F&B sector remains one of the most active,
while a recent decrease in the development
pipeline should help to support values overall. Ecommerce is expanding rapidly, including heavy
investment from Amazon and other companies,
while F&B apps are also growing quickly. It isalso noteworthy that the expansion of somebrands across Latin America (such as Miniso
and Starbucks) is driven by Mexican firms who
own the master-franchises or the rights todevelop the brands across the whole region.
Indeed, Mexican retailers are teaming-up withinternational brands to help their expansion
across the region including, on occasion,
investment in Mexican brands (Oxxo in Peru,
for example).

30

MARKET SUMMARIESAMERICASPERU

USAHigh street rents have been on an upward trend
as a result of a shortage of supply, although theyremain lower than in the major shopping
centres. Numerous new brands have recently
entered or will soon enter the market, including
Ihop (F&B), Taco Bell (F&B), Miniso (massmarket), Oxxo (mass market), Smartfit (fitness),
Rappi (delivery), Maserati (cars), Bentley (cars)and Xiaomi (technology). Retailers alreadypresent in the market continue to expand,including Zara, H&M, Tambo and Starbucks,
among others. Online shopping continues togrow and has significant potential, as theconditions for purchasing and delivering the
products adapt to consumers’ evolving needs.
Given that the economic outlook is positive andindeed one of the best in the region, the retailsector is expected to continue expanding andattracting new foreign retailers, while stillencouraging the growth of local brands.

Along with the UK, the USA has been at theforefront of the structural change taking place inthe retail sector. Trends vary by location but,overall, the market is in better shape than a year
ago. Availability is down and prime rents in themain cities have generally stabilised – with growth
returning to a select number of key streets.

Cushman & Wakefield | Main Streets 2019

However, rents remain under pressure in someareas, notably in grade B locations.
Many retailers are in ‘wait and see’ mode interms of e-commerce, with some preferring tosign only five-year deals rather than thestandard ten-years, given the uncertainty ofwhere the dust may finally settle. In contrast,
numerous digitally native brands are testing
physical retail with short-term pop-up stores.
Occupier demand is skewed towards
experiential retail, entertainment andbartainment concepts, with technology, boutiquefitness, speciality food and quick serve
restaurants particularly active. While F&B
remains a key driver of the market, higher costs
and increasing competition may dampen
demand going forward. On a positive note,retailers focused on experiential formats willcontinue to thrive, while retail as an amenity tosupport live-work-play developments will also be
a major source of activity.

31

ASIA PACIFICMARKET SUMMARIESASIA PACIFIC
GREATER CHINA
China’s retail market continues to go from strength
to strength and, in some respects, leads the worldin terms of new development, technology andinnovation in the sector. While there are macro
influences, in a market as large and diverse as
China, trends can vary widely and often depend ona myriad of local supply and demand factors. As
such, rental trends in the last twelve months havevaried across the major cities.
However, there are a number of common themes
being seen in the market. Most major cities
continue to see a significant amount of new retaildevelopment, generally in the form of shopping
centres, which can often lead to short term volatility
in rents. Activity is being driven by both domestic
and international retailers, with the latter continuing
to pursue a strategy of opening in multiple
locations. A variety of sectors are active, including
fashion, children’s education, cosmetics,
entertainment, luxury, lifestyle, fitness and F&B.

Cushman & Wakefield | Main Streets 2019

Following initial concerns about the impact of
online on traditional retail, the focus has now
shifted to developing the ‘new retail’ model, which
blends the best of both in-store and online
experiences. Shopping malls and retailers are now
deploying smart technologies across the whole
retail spectrum from merchandising to marketingand customer engagement, with the aim of
improving operational efficiencies, reducing costs
and enhancing the customer shopping experience.
For the first half of 2019, the picture in Hong
Kong was a largely positive one. Tourist
numbers from the Mainland rose sharply,
boosted by the completion of the Hong KongZhuhai-Macao Bridge and the Hong Kong
terminus of the Express Rail Link (XRL). Rents
on the main streets edged up over the year toJune, with growth on the Kowloon side
(Mongkok and Tsimshatsui) outpacing that ofCauseway Bay. The most active retailers havegenerally been the mid-market brands, including
sports fashion and cosmetics, while the F&B
sector has come under pressure from risinglabour costs. However, as 2020 approaches theshort-term outlook for Hong Kong's retail market
appears increasingly dim as a result of growing
local political unrest and the ongoing US-China
trade tensions. These factors have begun to
impact on tourism from Mainland China and are
putting increasing pressure on rents across thecity’s major retail high streets.

In Taiwan, recent rental trends have varied bylocation, with rents remaining stable in
Zhongshan Nanjing and Taipei Railway Station.
Rents in Ximen meanwhile increased on theback of steady demand, supported by strong
tourist numbers. In contrast, Zhongxiao recorded
a decline in rental levels as a result of weakerfootfall traffic, with shoppers tending to Xinyi and
Ximen instead. Health & beauty retailers havecontinued to expand in the city’s major retailhubs, notably in Ximen. As at mid-year, there
were fourteen cosmetics stores within 200meters of Exit 6 of the MRT Ximen Station.
However, fast fashion brands Forever 21, SPAO
and MIXXO have ceased trading in the market.
Taiwan’s retail locations are facing the challengeof generating footfall traffic amid growing
competition from online retail and the issue of
attracting shoppers by developing attractive
schemes will be critical for retailers andlandlords. As many traditional retailers are
struggling to generate decent in-store sales in
the current market, F&B and leisure will likely
play a much bigger role going forward.

33

MARKET SUMMARIESASIA PACIFIC
INDIA

INDONESIAJAPAN

Rental trends over the past year have largely
been pointing upwards, with the lack ofavailability in the best shopping malls pushing
more brands to seek out prominent, high footfall
locations in the main commercial corridors.
While high street rents in the bigger cities of
Mumbai, Delhi NCR and Bangalore haveexperienced only marginal increases, other
cities such as Chennai, Pune and Kolkata –which have a more vibrant high street culture –have recorded much stronger rental uplift.
Growth sectors include F&B, clothing andaccessories, along with hypermarkets and ecommerce retailers opening physical stores.
Some large store formats are also
experimenting with standalone outlets close to
key commercial and residential markets along
major roads. The short-term outlook is upbeat,with rents expected to edge up in the major highstreets where supply remains constrained.

Base rents remain flat, although service charges
have increased slightly over the year. Consumer
spending has been stagnant and retailer
expansion plans have been scaled back in the firsthalf of 2019, largely as a result of politicalinstability. Fashion retailers are also experiencing
high operational costs, which is limiting their ability
to pay high rents. However, the sector remains
active, with retailers such as H&M and Uniqlo
opening new stores around the country.
Department stores and hypermarkets meanwhile
are feeling the effects of changing consumer
preferences, which is prompting some major retail
centres to redevelop and create a moresegmented and curated tenancy mix.

High street rents have seen little change in thelast year. However, the retail market hasremained active, notably the F&B and health &beauty sectors, with the latter driven by growth ininternational tourists. Recent interesting store
openings include the fifth Starbucks Reserve
Roastery in Nakameguro, while Samsung has
opened Galaxy, a VR experience store in
Harajuku. With men’s fashion currently on an
upward trend, Isetan and Hankyu have revamped
their stores in Shinjuku and Yurakucho
respectively to reflect diverse lifestyles. There aresome concerns about the increase in theConsumption Tax, as well as a new Chinese ecommerce law which imposes more restrictions
on the domestic sale of goods purchased
overseas, as mainland Chinese tourists havebeen a major driver of inbound spending. On a
positive note, the market has been buoyed by theforthcoming Olympic Games in Tokyo in 2020,
while the news that Osaka will host the World
Expo in 2025 is also encouraging.

Cushman & Wakefield | Main Streets 2019

F&B is still a major driver of activity, with various
new types of cuisines and food concepts
emerging, notably from international franchises.
Payment systems such as Gopay, Ovo and Dana
are helping to boost the growth of on-the-go food,snacks and drinks concepts, while lifestyle coffee
shops Kopi Kenangan and Fore have been
expanding quickly. The growth of online has
impacted most adversely on department stores,
although digitally native brands – notably fashion &accessories – are expanding through physicalstores. With a number of major schemes
undergoing refurbishment and the moratorium on
new development in Jakarta, rents are expected toincrease marginally over the coming year.

34

MARKET SUMMARIESASIA PACIFIC
MALAYSIAVIETNAMPHILIPPINESThe retail market is polarised in that demand forthe best shopping malls in the Greater Kuala
Lumpur area is much stronger than for lessprime or neighbourhood malls, many of which
continue to face the challenge of empty units. A
number of these schemes have successfully
repositioned themselves, with a greater focus on
F&B, edutainment and families. Landlords ofprime schemes meanwhile are busy refurbishingand improving tenant line-ups, with the aim ofenhancing the shopping experience to attract awider pool of shoppers and ultimately boosting
rental income. Nevertheless, overall rents are
expected to remain stable through to 2020,
given the uncertainty in the global economy andthe growth of online.

Recent rental performance has varied acrossthe top cities. Rents in Ho Chi Min turned in aflat performance resulting from a flood of new
entrants in the suburbs, while rents in Hanoi
rose on the back of strong demand for new
mixed retail and residential schemes in theSecondary and Western areas.

Rental rates in the key retail areas of Makati Cityand Taguig City have increased in response to
the continuous influx of foreign brands into themarket. Stronger growth would have been seen,
had it not been for a steady supply of new
schemes and extensions to existing ones.

Cushman & Wakefield | Main Streets 2019

F&B and entertainment such as cinemas andchildren’s zones are active and are now major
drivers of footfall. Online continues to take a
growing share of retail sales, with consumers
becoming more familiar with internet shopping,given improvements to payment methods andservice delivery. More retailers have developed
online channels such as transactional websites,
mobile apps and a social media presence,
helping to make the retail market morecompetitive. Demand for prime locations is stillhigh but further expansion is likely to focus onresidential areas with developed infrastructure
rather than the CBD.

The thriving retail markets in Makati CBD and
Bonifacio Global City (BGC) in Taguig City result
largely from the high concentration of upper-middle
and middle-income consumers in these areas.
F&B brands dominate the retail scene, withapproximately 60% of shopping mall space
devoted to them. Indeed, the majority of newmarket entrants over the last twelve months havebeen F&B operators, a trend expected to continue.
Online sales are growing but still only account foraround 2% of the total, with consumers generally
preferring to search online for product information
and availability, before travelling to the store tocomplete purchases. With the Philippines
expected to reach upper-middle income status by
the end of 2019, the retail sector looks set toremain buoyant due to favourable demographics
and rising disposable incomes.

35

MARKET SUMMARIESASIA PACIFICSINGAPORE

SOUTH KOREA

Prime rents continue to rise because of limited
supply, albeit at a gradual pace. Secondary
rents meanwhile have fallen steadily – reflecting
the challenging operating environment –although the rate of decline has slowed andthere are signs that these rents may soon reach
their floor. Luxury and F&B operators are among
the most active and Singapore continues to be a
key target for international brands seeking
flagship locations. These brands, many of whom
are new-to-market, continue to expand acrossthe Asia Pacific region, which includes apresence on Orchard Road or Marina Bay.

Rents have softened marginally in Seoul’s mainhigh streets such as Myeong-dong, Hongdae andGangnam Station. The market is heavily in favourof occupiers, with online having a significant
impact and sales notably suffering at the big SPA
brands which are steadily reducing their physicalfootprint. The footwear and luxury sectors havesomewhat bucked the trend, with store numbers
increasing year-on-year, while concepts whichbring together online and offline are also
expanding. However, downsizing looks set to bea key feature of the market for the foreseeable
future, with a dwindling number of large space
users leading to the sub-division of units, in orderto maintain or increase rental levels.

Online is having an impact but the proportion of
online sales to overall retail sales remains low ataround 5.1%. However, the retail environment ischanging and retail landlords are experimenting
with new concepts. These include bringing in coworking operators into malls, increasing the
proportion of entertainment and F&B and working
with e-commerce players to bridge the onlineoffline experience. Despite the more uncertain
global economic outlook, prime rents are expected
to remain resilient, supported by limited supply,
while record tourist arrivals and low unemployment
will bolster consumer confidence.

Cushman & Wakefield | Main Streets 201936

MARKET SUMMARIESASIA PACIFICTHAILAND

AUSTRALIA

Rents have remained unchanged in Bangkok
due to the highly competitive market, especiallyin the Non-CRD (Non-Central Retail District)area, where little new supply is coming through.
Land prices in prime areas have risen
dramatically and suitable sites for shopping
centres are difficult to find. In recent years, thegovernment has invested significantly in thecapital’s public transport system, in the city itself
and the wider suburban area. Developers are
now focusing on new developments in
Bangkok’s suburbs, ranging from community
malls to larger regional shopping malls. F&B is
the most active sector, with many new local andinternational operators entering the market,
supported by social media and an increasing
amount of devoted to it in shopping centres.

The retail market is currently favourable tooccupiers and landlords are more predisposed
to capital contributions and rent-free periods. As
a result, rents in some locations have fallen,
particularly in CBD strip retail areas. In contrast,
rents on some of the higher footfall pitches haveincreased, including Sydney’s George Street
which will benefit from the new light rail project.
Online sales continue to take an increasing
share of the market and, with a degree of
uncertainty about the medium-term outlook, newentrant retailers are asking for break clauses
and/or more flexible terms, while many small
businesses are also opting for more temporary
pop up activations. However, there is strong
demand for flagship stores and double height
frontages and the concept of ‘click and collect’mixed with retail experience is growing. Sectors
which are notably active include technology,
cosmetics, F&B, convenience stores and luxury
retail – with the latter receiving a boost from thedecline in the Australian dollar.

While online sales are seeing double-digit
annual growth, Thai retail developers continue toenlarge their footprint, with more than 1 million
sq.m of new space in the pipeline. However,some retailers have been scaling back their
physical presence to focus more online.
Generally, the retail market is in good health,supported by a strong economy and improving
tourist numbers.

Cushman & Wakefield | Main Streets 201937

GLOBAL RETAIL RENTS
THE KEY FIGURES
RENT
Q2 2019
US$/SQ.FT/YEAR

RENT
Q2 2019€/SQ.M/YEAR

LOCAL
RENTS
JUN 2019

Causeway Bay (main street shops)
Upper 5th Avenue (49th - 60th Sts)

2,745
2,250

25,965
21,295

1,787
2,250

LondonNew Bond Street

1,714

16,222

2,250

Paris
Milan
Tokyo
SydneyZurichSeoul
ViennaBeijing
MunichDublinAthensBarcelona
Singapore
Amsterdam

Avenue des Champs Elysees
Via Montenapoleone
Ginza
Pitt Street Mall
Bahnhofstrasse
Myeongdong
Kohlmarkt
Wangfujing
Kaufinger/Neuhauser
Grafton Street
Ermou
Portal de L'Angel
Orchard Road
Kalverstraat

1,478
1,447
1,251
1,076
866
862
513
471
469
401
361
361
312
301

13,992
13,70011,838
10,185
8,195
8,163
4,860
4,453
4,440
3,794
3,420
3,420
2,957
2,850

19,00013,700400,000
16,5009,100
893,091
405
2,900
370
6,750
285
285
35
2,850

Czech Republic

PragueNa Příkopě street

298

2,820

RussiaIndia
NorwayMoscow
New Delhi
Oslo

Stoleshnikov
Khan Market
Karl Johan

288
243
240

2,728
2,302
2,268

Malaysia

Kuala Lumpur Suria KLCC

232

2,194

80

RANK
2019

RANK
2018

MARKET

CITY

LOCATION12

1
2

Hong Kong, China
USA

Hong Kong
New York

3

3

United Kingdom

4
5
6
7
8
9
10
11
12
13
14
14
16
17

4
5
6
7
9
8
10
11
12
13
15
14
17
16

FranceItaly
Japan
Australia
Switzerland
South Korea
Austria
Mainland China
Germany
Ireland
GreeceSpain
Singapore
Netherlands

18

19

19
20
21

18
21
20

22

24

23
24
25

27
26
23

Taiwan, China
SwedenCanada26

22

Luxembourg

27
28
29

25
28
31

Belgium
Denmark
Hungary30

29

Vietnam

31
32
33
34

32
33
n/a
29

Finland
Portugal
IsraelTurkeyTaipeiStockholm
TorontoLuxembourg
City
Antwerp
Copenhagen
Budapest
Ho Chi Minh
City
Helsinki
LisbonTel Aviv
Istanbul

35

34

Thailand

BangkokCushman & Wakefield | Main Streets 2019

RENT
Q2 2019
US$/SQ.FT/YEAR

RENT
Q2 2019€/SQ.M/YEAR

LOCAL
RENTS
JUN 2019

114
101
97
95
95
89
78
76
72
72
71
69

1,080
960
918
918
900
844
733
720
686
686
672
658

90
80
87
350
75
80
983,600
60
65
65
56
240

Calle peatonal Florida. From Av.
Cordoba to Av. Corrientes_4 blocks

67

633

60

Nicosia
Bucharest
Bratislava

Ledras Street
Calea Victoriei
City Centre

63
63
63

600
600
600

50
50
50

Chile

Santiago

Providencia/Avenida
Providencia 1822-2382

55

522

1

Philippines

Taguig (Metro Manila) Bonifacio High Street

54

513

2,500

51

480

40

51
43
43
40
39
36
36
35
32
31
28
28

480
418
408
377
369
338
336
335
306
295
264
264

40
1,750
34
340
35
32
28
12
29
28
25
25

27

257

343

20

190

18

RANK
2019

RANK
2018

MARKET

CITY

LOCATION

36
37
38
39
40
41
42
43
44
44
46
47

36
37
38
35
39
45
41
40
45
56
47
44

SerbiaPolandMexicoUAE
Croatia
Ghana
Indonesia
Slovenia
UkraineColombia
Bulgaria
BrazilBelgrade
Warsaw
Mexico City
Dubai
ZagrebAccra
Jakarta
Ljubljana
Kyiv
Bogotá
Sofia
São Paulo

Kneza Mihaila
Nowy Swiat
Masaryk
Prime – A
Ilica Street

48

42

Argentina

Buenos Aires

49
49
49

47
49
50

CyprusRomania
Slovakia

235

52

n/a

196,000
1,400
22,000

53

43

Ximen
Biblioteksgatan
Bloor Street

217
210
206

2,053
1,989
1,952

20,00021,000270Grande Rue

203

1,920

160

Meir
Stroget (including Vimmelskaftet)
Vaci utca

201
194
190

1,900
1,837
1,800

1,900
24,000150Best Achieved Shopping Mall (GF)

184

1,741

165

City Centre
ChiadoKikar Hamedina
Centre – Istiklal Street
Central Retail District (CRD)(Rajprasong/Sukhumvit street)

171
165
160
145

1,620
1,560
1,537
1,372

135
130
6,240
130

142

1,345

3,910

54

53

Latvia

Riga

54
56
57
58
59
60
61
62
63
64
65
65

53
52
57
51
55
63
59
58
60
61
65
64

Lithuania
Saudi Arabia
Estonia
Kenya
Nigeria
Peru
Macedonia
Oman
Zimbabwe
Mozambique
Namibia
ZambiaVilnius
RiyadhTallinn
Nairobi
Lagos
Lima
SkopjeMuscatHarareMaputoWindhoek
Lusaka67

n/aSouth Africa

Kwazulu-Natal
Province

68

61

Tanzania

Dar es SalaamPrimeČopovaKreschatik Street
Zona Rosa (*Ex- Zona T )Vitosha Blvd
Oscar Freire Jardins

Kalku St./Valnu St./Audeju
St./Terbatas St./Kr.Barona St.

Viru Street
The Junction
Miraflores
Makedonija Street
High Street
Village Walk Borrowdale

Levy Centre
Regional Shopping Centre(50,000 - 99,999 sq.m)

38

TECHNICAL SPECIFICATION
Our representation is designed tofacilitate the rapid flow of information
across borders and is supported by
a comprehensive database of
marketing information and regularliaison meetings. This allows for theexchange of local market knowledge
and expertise and for the co-ordinationof strategy for international investment
and locational decision-making.
Data for retail rents relates to our professionals’
opinion of the rent obtainable on a standard unit
in a prime pitch of 448 locations across
68 markets around the world. Service charges –such as building insurance, local taxes andcosts of repair payable by the tenant – are
not included.
In the dynamic international retailing sector,
local market characteristics, technologicaladvancements and the evolution of new retail
formats are just several of the forces that affectthe size and configurations of retail units. As
a result, occupation costs vary from one country
to another.

Cushman & Wakefield | Main Streets 2019

For the purposes of this survey, the standard
main street unit is defined – where possible –as a unit with 150-200 sq.m of sales area.
Typically, a unit has a frontage of 6-8 metres.
However, an element of flexibility is needed withthe definition, given that unit configuration varies
from market to market. Assumptions regarding
ancillary space follow local practice.

The information has been provided by Cushman & Wakefield,
external sources and the affiliate partners of Cushman & Wakefield:

The format selection for each city is based on its
dominance of the retail landscape and/or its
status as the prime pitch/top destination in thecity. The rents represent our agents’ views as towhat is consistently achievable for prime space;indeed, we do not quote asking rents for thehighest rent obtainable. It is assumed that theunit is vacant and is available for letting on the
open market, without any request for premium(key money). However, in many top locations
around the world, vacant units are rarely
marketed and substantial key money to sitting
tenants is often payable.
Rents in most markets are supplied in local
currency and converted to USD and Euros forthe purposes of international comparison. Rents
in the UK, Denmark, France and Ireland are
originally quoted in Zone A and are converted
to an overall basis.

MARKET

AFFILIATE PARTNER

AUSTRIAÖRAG Immobilien Vermittlung GmbHAFRICA

Broll Property GroupBULGARIA

Cushman & Wakefield Forton

DENMARK

Cushman & Wakefield RED

ESTONIAKinnisvaraekspert OU

FINLAND

Cushman & Wakefield Finland

GREECE

Cushman & Wakefield Proprius

ISRAEL

Cushman & Wakefield Inter Israel

LATVIA

Kinnisvaraekspert OU

LITHUANIA

Kinnisvaraekspert OU

MALAYSIAIVPS Real Estate

NORWAY

Cushman & Wakefield Realkapital

ROMANIA

Cushman & Wakefield Echinox

SERBIACBS International

SLOVENIA

S-Invest d.o.o

SWITZERLAND

SPG Intercity

THAILAND

Nexus Real Estate Advisory Company Limited

UKRAINE

Cushman & Wakefield Ukraine

39

CONTACTS
EMEAAMERICAS

ASIA PACIFICDARREN YATESHead Of EMEA RetailResearch & InsightGARRICK BROWN
Vice President, Retail Intelligence
Americas Retail Services

JAMES SHEPHERD
Head Of Research, Asia Pacific+44 (0) 20 3296 3911
darren.yates@cushwake.com+1 916 508 3410
garrick.brown@cushwake.com

SILVIA JODLOWSKI
Senior Research Analyst
EMEA Research & Insight

JADSON MENDES ANDRADE
Head, South America
Market Research & Business Intelligence+44 (0) 20 3296 4233
silvia.jodlowski@cushwake.com+55 11 3513 6783
jadson.andrade@sa.cushwake.com+86 21 2208 0769
james.shepherd@cushwake.com