Move Over, New York – Make Way for Milan

The rankings for the priciest main streets for retail rent have changed significantly since the 2023, Cushman & Wakefield’s latest survey of such costs finds. First and foremost: Milan’s Via Montenapoleone has surpassed New York’s Fifth Avenue to become the world’s most expensive retail destination, with average rents hitting $2047 per square foot per year to Fifth Avenue’s $2000, which has remained unchanged since 2022. This shift is attributed to strong rental growth over the past two years and the euro’s appreciation against the U.S. dollar this year.

London’s New Bond Street, with a rental value of $1762 per square foot per year, has also climbed the ranks and surpassed Hong Kong’s Tsim Sha Tsui, where rental values measure at $1,607 per square foot per year.

The Avenue des Champs-Élysées in Paris has managed to retain its fifth position, though the gap to sixth narrowed following strong growth of 25% YOY in Tokyo’s Ginza district.

Per the Cushman & Wakefield study, here are the 10 most-expensive retail streets around the globe:

1. Via Montenapoleone, Milan
2. Fifth Avenue, New York
3. New Bond Street, London
4. Tsim Sha Tsui, Hong Kong
5. Avenue des Champs-Élysées, Paris
6. Ginza, Tokyo, Japan
7. Pitt Street Mall, Sydney, Australia
8. Myeongdong, Seoul, South Korea
9. Bahnhofstrasse, Zurich, Switzerland
10. Kohlmarkt, Vienna, Austria

“Despite economic challenges, main streets have shown remarkable resilience as headline rents globally finally surpass prepandemic levels,” the report notes. “Retailers continue to target prime locations for their strategic importance and potential for customer attraction, demonstrating their flexibility and strength by adapting to shifting economic conditions and consumer demands.

“Challenges like rising interest rates and inflation have dampened consumer confidence—yet forecast further rate cuts bring a hopeful outlook for recovery. Retailers are navigating cost-pressure challenges while adapting to shifting consumer loyalty trends that demand an omnichannel customer journey, making main street locations increasingly critical arenas for long-term business growth.”

Click here for more from the report.