Retail Rebound: How Retail Real Estate Fared During the Great Pandemic Stress Test (Cushman & Wakefield) 24 November 2022
Almost three years after the onset of the global pandemic, the retail industry has been through one the biggest stress tests imaginable, but best-in-class real estate has remained robust – and even emerged stronger in some markets.
Cushman & Wakefield's flagship Main Streets Across the World report tracks the top retail districts across 92 cities and ranks the most expensive by prime rental value. An annual report until 2019, this year’s report is the first since then, allowing insight into comparative performance pre- and post-pandemic.
Rent Growth Highlights
- Rents across global prime retail destinations declined by 13% on average during the depth of the pandemic but have rebounded to just 6% below pre-pandemic levels.
- The Americas, thanks largely the to the U.S., was the most resilient region - on average rents now sit at a 15% premium to pre-pandemic levels.
- In Asia Pacific rents fell on average by 17%, impacted by international border closures, which curbed tourism in prime locations.
Global Rankings
- New York’s Upper Fifth Avenue moves up one spot to number one, now ranks as the most expensive retail destination in the world.
- Hong Kong has slipped to second place, with Tsim Sha Tsui overtaking Causeway Bay as the most expensive precinct in the city-state.
- Via Montenapoleone in Milan has jumped two positions to achieve third place, followed by London’s New Bond Street and The Avenues des Champs Elysees in Paris rounding out the top five.
