Main Streets Across the World 2024

Global Rental Growth Trends

While rental growth varies significantly across the globe, report data indicates that over half of the 138 locations tracked saw YOY rental growth. Competitive tension between retailers and limited space has heightened demand for retail space on key streets, driving up rental prices.

Rental growth has been particularly robust in the U.S., which experienced a YOY increase of almost 11%. This marks a significant uptick from previous years and highlights the strength of the American market in the global retail landscape. In contrast, Europe and Asia Pacific saw slower rent growth, experiencing increases of 3.5% and 3.1%, respectively.

Iconic Main Streets and Their Rankings

The rankings of the world’s most iconic main streets have changed significantly since the 2023 ranking. Milan’s Via Montenapoleone has now surpassed New York’s Fifth Avenue to become the world’s most expensive retail destination, with average rents reaching $2,047 per square foot per year to Fifth Avenue’s $2,000, 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 $1,762 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.

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The New Era of Retail - Main Streets Across the World

According to the 34th edition of Cushman & Wakefield's global report Main Streets Across the World, Passeig de Gràcia in Barcelona reaffirms its position as the commercial street with the highest rents in Spain.

This report, which analyzes prime retail rents in 92 cities worldwide, highlights the enduring appeal of Passeig de Gràcia, which has risen from 17th to 16th place in the global ranking this year. With a prime rent of €3,180/m²/year, the street recorded a 6% increase compared to the previous year. It hosts prestigious luxury brands such as Dior, Versace, Loewe, and Prada, consolidating its status as one of the most iconic prime retail streets globally.

Growth in Madrid and Barcelona

Calle Serrano in Madrid follows closely, with rents of €3,060/m²/year, reflecting a 4% increase compared to the previous year. This growth is driven by major luxury brands, which have contributed to the recovery of maximum rents, positioning Serrano at 28th place in the European ranking, just one position behind Passeig de Gràcia (27th).

In Spain, the podium is completed by Portal de l’Àngel in Barcelona and Gran Vía in Madrid, both tied in third place with prime rents of €3,000/m²/year.

Prime Retail and Tourism Impact

The latest Cushman & Wakefield report highlights how global retailers continue to prioritize a physical presence in iconic and super-prime locations, characterized by high competition for space and limited availability.

Tourism, especially international tourism, plays a significant role in the performance of super-prime retail destinations. While there are local variations, approximately 40%-50% of luxury purchases are made during travel. The benefits extend beyond the luxury segment, as tourists also spend on other retail sectors and leisure activities, contributing to the overall vitality of these locations.

Global and Local Tourism Recovery

From January to July 2024, 790 million tourists traveled globally, nearing a full return to 2019 levels and only 4% lower in international tourism revenues compared to 2023. These factors point to a complete recovery in international tourism during the second half of 2024, with passenger arrivals expected to exceed 2019 levels by 2% for the year.

Further growth is expected in 2025, with global tourist numbers projected to increase by nearly 13% year-on-year, led by the Asia-Pacific region but with strong contributions from all regions.

In Spain, from January to September 2024, the country welcomed 73.9 million international tourists, a 10.9% increase compared to the same period in 2023. Of these, 88.2% visited for leisure purposes, consolidating tourism as a critical driver of the Spanish economy.

The Impact of Changing Economic Conditions

Changing economic conditions, which recently have centered around inflation and interest rates, have far-reaching effects on main streets. Retailers must adapt to these conditions to maintain their competitive edge. High interest rates and high inflation have created a cost-of-living crunch, generally dampening consumer and business confidence. As interest rate cuts have come, we have first seen ongoing improvements in business confidence, with consumer sentiment starting to follow. Further interest rate cuts are expected to provide further economic stimulus.

Physical Presence in Partnership with Digital

The continued strength of main streets lies in the power of physical presence. Retailers recognize the value of high-quality locations, which serve as compelling brand expressions. Places like these Physical stores offer a tactile experience that digital platforms cannot replicate. They create a connection between the brand and the customer, enhancing loyalty and engagement. Digital channels, nonetheless, play an integral role and so retailers continue to trend toward integrating digital experience both within and beyond brick-and-mortar locations, rather than fully replacing one with the other. This partnership between physical and digital realms is integral to curating thriving experiences on main streets.

Super-prime retail streets, often dominated by luxury brands, are now attracting diverse sectors such as sports, cosmetics, and wellness.

Our Approach: How We Ranked Main Streets Across the World

Main Streets Across the World provides insights into headline rents across 138 cities, tracking year-over-year (YOY) changes while accounting for foreign exchange rates and local metrics The global ranking includes one street per market (country), while regional rankings share unfiltered headline rent prices per square foot for all tracked cities within each region (APAC, EMEA and the Americas).

For a deeper understanding of these dynamics and to explore the comprehensive data analysis, download the Main Streets Across the World report today. Gain invaluable insights into how main streets are evolving and what strategies can be employed for future growth and success.