The 10 Most Expensive Retail Lease Locations in the World
Think your retail lease is on the pricey side? In this article, lease lawyer and solicitor Glenn Duker takes a look at the 10 most expensive retail lease locations in the world.
1. Upper 5th Avenue, New York
Topping the list is Upper 5th Avenue in New York City, with a whopping average annual rent of US$3,500 per square foot. With many retail businesses having spaces of over 1000 feet, the majority in the area are playing hundreds of thousands – and even millions – for the privilege of their location.
2. Hong Kong, Causeway Bay
Home to a host of world-famous retailers, Hong Kong’s Causeway Bay boasts an average rent of $2,735 per square foot. One store in the shopping complex, Swedish retailer H&M, pays over $700,000 per month for their retail space.
3. Times Square, New York
Recognised around the world as an iconic bustling city area, it’s not surprising that Times Square has an average rent of $2,300 per foot. It’s estimated that over 300,000 pedestrians walk through the area daily, making it a highly lucrative location.
4. Central, Hong Kong
The central area of Hong Kong is one of the city’s busiest shopping districts, contributing to an average rent of $2,164 per square foot. Many flagship chains are present, attracting both local and international visitors.
5. Tsim Sha Tsui, Hong Kong
Boasting Asia’s largest Toys R Us store, Tsim Sha Tsui is another Hong Kong shopping district that commands high rents – in this case, an average annual rent of $2,063.
6. Champs-Elysées, Paris
Popular with both tourists and visitors, Champs-Elysées contains many luxury retailers, resulting in an average annual rent per square foot of $1,556.
7. Madison Avenue, New York
Madison Avenue is home to some of the wealthiest residents in the world, making it a shopping paradise. Due to high demand for retail space in the area, it boasts an average annual rent of $1,400 per square foot.
8. New Bond Street, London
Featuring many high-end retailers, London’s New Bond Street has the highest retail rent in the UK, with an average annual cost of $1,216 per square foot.
9. Pitt Street Mall, Sydney
Pitt Street Mall in Sydney attracts both locals and tourists, making it a hotspot for shopping in Sydney. As a result, the average yearly rent is $1,016 per square foot – the highest retail rent in Australia.
10. Lower 5th Avenue, New York
The fourth New York area to appear on this list, Lower 5th Avenue has an average rent of $1,000 per square foot – proving that New York is in high demand with both retailers and shoppers!
Paying too much for your retail rent?
While the rents in these locations are drastically high, most retailers manage to still come out on top due to the increase in visibility and foot traffic they receive by renting there. If you’re not in one of the hot locations mentioned above, and you think you might be paying too much rent, contact experienced lease lawyer Glenn Duker today for helpful advice and assistance.
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