Sydney’s Pitt Street mall drops to fifth most valuable retail strip: Cushman & Wakefield
Sydney’s Pitt Street mall has dropped from fourth to fifth place in the latest list of the world’s most valuable retail destinations, according to analysis by Cushman & Wakefield.
The 2012 report has found that rents on Pitt Street mall have remained unchanged at US$952 per square foot over the past year, with the location suffering from not having enough landmark building on the strip to attract higher rents.
In local currency, rent on Pitt Street mall are around $10,000 per square metre, more than double the $5,000 per square metre on nearby, but far less fashionable George Street.
The report says it is more expensive to rent space on Brisbane’s Queens Street mall ($5,000 per square metre) than on Bourke Street in Melbourne ($4,500 per square metre).
The world’s 10 most expensive retail locations in each country (2012)
Source: Cushman & Wakefield
The report notes that luxury retailers in Australia are largely located in Sydney along Pitt Street mall, Westfield Sydney Shopping Centre, George Street and Martin Place.
“There is, however, a noticeable disparity between the rents paid by luxury and mass-market retailers. Luxury brands are attracted by properties which stand out – for example a landmark building or location.
“Despite a number being located on Pitt Street, they are often situated a block away from the main strip, allowing them to build their own identity and also pay more moderate rents,” says Cushman & Wakefield.
Hong Kong’s Causeway Bay has replaced New York’s Fifth Avenue as the most expensive retail location for the first time in 11 years.
Causeway Bay retail property values have increased 35% over the past year, while Fifth Avenue values have managed only 11.1% growth.
Of the 326 prime locations in 62 countries surveyed for the report, a total of 147 had rent rises.
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