News / From the associates

C&W’s report on the vitality of the world’s leading retail streets highlights how, despite economic and geopolitical uncertainties, the retail sector continues to demonstrate remarkable resilience. Global rents have risen by an average of 4.2% over the past year, driven by steady demand for physical retail space in strategic locations. Competition for prime retail space is fierce, driving brands to use advanced data to optimize their site selection. Among the most prestigious streets, demand for retail locations on iconic thoroughfares remains extremely high, as they represent not only a place of sale but also a symbol of prestige, visibility, and a key vehicle for brand identity.

From a geographic perspective, the Americas saw particularly strong growth in rents, with an annual increase of nearly 8%, driven primarily by South American cities. Europe showed stable and accelerating growth at 4%, while the Asia-Pacific region experienced a slowdown to approximately 2%. In Europe, streets such as New Bond Street in London have seen significant increases, with rents rising by 22% to bring the average cost to $2,231 per square foot (approximately $24,000/m²), making this street the most expensive in the world, overtaking Via Montenapoleone in Milan, which retains second place with rents stable at around $1,900 per square foot (approximately $20,450/m²). Other European streets such as Oxford Street and Regent Street in London have also recorded double-digit growth, while Budapest saw a jump of over 30% on Fashion Street, which has recently become the city’s main shopping street.

In general, global shopping streets are evolving, increasingly integrating data and analytics to understand consumer behavior and optimize location selection. The importance of a physical presence on these streets remains crucial, especially for luxury brands and innovative retailers that focus on immersive experiences and the combination of digital and physical elements. The growth of international tourism and the ability to attract high-spending consumers help maintain the high value of these streets, despite global economic challenges. Retailers and investors, therefore, view main streets not only as sales locations but as strategic platforms for branding and long-term growth.