Twenty of the nearly sixty high streets analyzed by Cushman&Wakefield’s report, Main Streets Across the World have reduced their rents.
While the stores shut down and the ‘everything must go’ signs multiplicate, there are still places where there is more demand than supply of retail space. They are la résistance in times of Retail Apocalypse, a paradise for owners and real estate consultants and where incomes continue to skyrocket while in the rest of the planet they adjust.
In twenty of the 59 cities analyzed by Cushman&Wakefield for which there is comparative data, retail rents have went down in the last year, and in seven others they have stagnated. Where there have been increases, they have been, in most cases, very moderate. The exceptions? Bogotá, Venice and Sydney, attractive destinations for retail where rents are on the rise.
Rents per square meter per year in the Zona Rosa, in Bogotá have gone from 411 euros on average in 2018 to 686 euros
The Colombian capital is, compared to others in America, relatively cheap to operate a store, although after the 2019 rise it has positioned itself as the second most expensive in Latin America, only behind Mexico City. Rents per square meter per year in the Zona Rosa have gone from 411 euros on average in 2018 to 686 euros last year, which represented a 67% increase.
According to the latest Hot Retail Cities report, the Colombian city has established itself as one of the most attractive cities for the sector in Latin America. The Colombian capital is number 77 in the ranking thanks to its positive economic development, backed by the latest forecasts of the International Monetary Fund (IMF).
Venice is placed sixth in the European ranking, behind London, Paris, Milan, Rome and Zurich
The second city where income increased the most was Venice, where the lack of supply continues to push rents up. Opening a store on the main shopping street of the Italian city, San Misè, costs an average of 7,200 euros per square meter per year, up 20% from the previous year.
In fact, taking into account only the most expensive streets in each city, Venice is placed sixth in the European ranking, behind London, Paris, Milan, Rome and Zurich and ahead of Florence.
Sydney and Athens are the other two cities where retail rents have rised the most, with increases of 14.7% and 14.0%, respectively. In Pitt Street Mall, in Sydney, opening a store costs 10,185 euros per square meter per year, compared to just 8,882 euros the previous year. In the Greek capital, meanwhile, the average rent in Ermou is 3,420 euros, matching those of Portal de l’Àngel in Barcelona.
Sydney has established itself as the number 17 of the most attractive cities for fashion, according to Hot Retail Cities. Although some positions have dropped compared to last year, the largest city in Australia and Oceania is one of the best-developed metropolises in a global context of uncertainty and slowdown.