According to a new report, Upper Fifth Avenue just beat out Hong Kong's Causeway Bay for the most expensive retail rents in the world, so, uh, congrats? With rents increasing by 13% in the last year, Fifth Avenue now holds the world retail record of $3,500 per year per square foot.
"The arrival of brands such as Microsoft, which recently announced its first flagship store in New York's Upper Fifth Avenue, further underlined the importance of these premier shopping destinations," Matt Winn, global retail chief operating officer at Cushman & Wakefield told Bloomberg.
Last January, the highest rents on Fifth Avenue had just reached a record $3,100 per square foot per year—which, compared to the year before was already a significant hike.
That's not to say that rents aren't still outrageous in other parts of the city—when the Real Estate Board of New York released their annual report in October, it was revealed that 13 of 17 shopping corridors had increased over the past year, and that East 57th Street between Park and Fifth Avenues in particular had seen a 41% rise in rents. Elsewhere, the Flatiron District, Madison Avenue, Harlem, and Times Square saw dramatic rises, and unsurprisingly, fancy new malls like Brookfield Place and Westfield World Trade Center have caused major rents increases the Financial District as well.
· New York Overtakes Hong Kong for Most Expensive Retail [Bloomberg]
· Retail Rents on Fifth Avenue Topped $3,100 in 2013 [Racked NY]
· One Square Foot of Fifth Ave Retail Space Is $3,400+ Per Year [Racked NY]