Sandton City has overtaken Cape Town’s V&A Waterfront as the most expensive shopping space per square metre in South Africa.
The 28th edition of Cushman & Wakefield’s report: Main Streets Across The World, analyzed 462 top shopping streets in the world and ranked the most expensive locations in each country by their prime rental value.
New York’s Fifth Avenue, Paris’ Avenue des Champs-Elysees and Hong Kong’s Causeway Bay have held their top three positions in 2016.
Space along Fifth Avenue, which is lined with flagship stores, costs as much as $3,000 per square feet annually, or for European purposes – €29,065 per square metre.
Retailers in Causeway Bay pay up to $2,878 per square foot annually – €27,884, while along Paris’ Avenue des Champs Elysees, the average annual rent is $1,368 per square foot – €13,255.
In South Africa, Sandton City in Joburg to the most expensive retail area at €1,106 – R16,917 per square metre. Joburg’s primary shopping spot is rated as the 38th most expensive in the world, up one place from 2015.
According to Cushman & Wakefield’s report, monthly rent per square metre in Sandton City amounts to R1,500, while the V&A Waterfront costs R1,300, and Eastgate in the East Rand costs R1,000 per square metre per month.
South Africa’s richest retail areas
| # | Street | City | ZAR/sq m/year |
|---|---|---|---|
| 1 | Sandton City | Johannesburg | €1,106 – R16,863 |
| 2 | V&A Waterfront | Cape Town | €959 – R14,621 |
| 3 | Eastgate | East Rand | €738 – R11,249 |
| 4 | Menlyn Park | Pretoria | €369 – R5,626 |
| 5 | The Pavillion | Westville | €369 – R5,626 |
| 6 | Umhlanga | Durban North | €221 – R3,369 |
| 7 | West Street | Durban | €199 – R3,034 |
| 8 | CBD | Pietermaritzburg | €148 – R2,256 |
| 8 | St. Georges Mall | Cape Town | €111 – R1,692 |
As consumer demands for immediate gratification intensify further, in an already competitive retail environment, brands must ensure they can meet these multi-channel needs, said Cushman & Wakefield.
“They need to provide a platform that services the traditional bricks and mortar consumers, and those who want to view and purchase at the click of a button, as well as everything in between.”
The report noted that real estate owners are actively responding, although at varying speeds, to these ever changing needs by broadening their tenant mix, increasing the share of Food & Beverage operators, and/or adding leisure elements.
Technology also features highly, feeding into the experience, but crucially also gives an insight into the evolving habits of consumers, it said.
Top 10 richest retail streets in the world
| # | Street | City | ft/m per year |
|---|---|---|---|
| 1 | Fifth Avenue | New York | $3,000 – €29,065 |
| 2 | Causeway Bay | Hong Kong | $2,878 – €27,884 |
| 3 | Avenue des Champs Élysées | Paris | $1,368 – €13,255 |
| 4 | New Bond Street | London | $1,283 – €12,433 |
| 5 | The Ginza | Tokyo | $1,249 – €12,102 |
| 6 | Via Montenapoleone | Milan | $1,239 – €12,000 |
| 7 | Pitt Street Mall | Sydney | $968 – €9,383 |
| 8 | Myeongdong | Seoul | $908 – €8,793 |
| 9 | Bahnhofstrasse | Zurich | $868 – €8,408 |
| 10 | Kohlmarket | Vienna | $477 – €4,620 |