Zurich in the top 10: These are the world’s most expensive shopping miles

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“Lucy” has been shining again for a few days. 23,100 LED lights illuminate Zurich’s Bahnhofstrasse. Premium Christmas lights are a big hit with shoppers. Such promotions create excitement on prestigious shopping streets around the world, arousing emotions and desire to shop. Online shopping cannot do this. Big campaigns like “Lucy” are also a way to keep shopping distances appealing and appealing. The train station streets of the world seem to be successful in this. Since the pandemic, most of the world’s major shopping streets have been able to maintain or even exceed their highest rents. This is also evident in the latest report from global real estate consultancy Cushman & Wakefield (Cushwake).

Bahnhofstrasse Zurich is ranked seventh in the world

The “Main Streets of the World” study continues to rank New York’s Upper 5th Street as the world’s most expensive shopping district. In the section between 49th and 60th Streets, first-class rents of over 20,000 Euros per square meter per year are achieved.

Bahnhofstrasse Zurich maintains its seventh place compared to last year; An annual peak of 9,243 euros per square meter is expected here, 1 percent more than before the pandemic: “The situation looks stable, sectors such as luxury and beauty continue to attract attention due to the high demand for retail space,” says SPGI Zurich Head Office and Retail Services Gabriela Brandenberg from The Zurich real estate service provider has been the Swiss alliance partner of Cushman & Wakefield since 1993.

However, Brandenberg also says: “Requirements are increasing. We’re looking for the perfect space.

Brandenberg describes the perfect location this way: “The optimal location is a ground-level location with a large storefront, high ceilings, and a size of one hundred square meters or slightly less. If the desire is great and the location is absolutely right and available, the highest rent of 9,243 euros per square meter per year is paid for new deals in Bahnhofstrasse Zurich.

Rental prices decrease as prices increase

A ground level location is the best way to attract customers to the store. Brandenberg says it gets even more difficult if you want to get them to go to the lower or upper floors: “The ground floor is the trump card. Willingness to pay decreases sharply downwards and upwards.”

What is also clear when it comes to rents is this: “Using a rule of thumb, we calculate one-third of the ground floor rent in the basement; on the first floor it is 50 percent. “On the second and third floors, this decreases rapidly again.”

High energy prices hurt mass market providers

The change in interest rates has not yet strongly manifested itself in the rising rental prices on the Bahnhofstrasse in Zurich and the Rue du Rhône in Geneva, says Brandenberg: “Many suppliers on Switzerland’s high streets have long lease agreements, so any changes can only be made if the contract It will enter into force when signed. It has been extended.”

However, an impact can be seen in rising energy prices, which have an impact on additional costs: “We are noticing reduced interest from providers in the mid-price range. “Retailers and brands here have become very price sensitive.” Brandenberg says mass-market suppliers “apparently have to struggle more with rising energy costs than luxury brands that can continue to absorb such surcharges.”

Shopping streets in Europe: Milan leaps to the top

From a European perspective, Cushwake sees Geneva’s Rue du Rhône as number 22. A striking look at the old continent: Milan’s Via Monte Napoleon takes a big step forward.

A pattern emerges that can often be observed on the world’s most valuable shopping streets in Milan. If there is a movement in the market, if a luxury brand moves or expands into a new area, this can have a big impact.

In the case of Via Monte Napoleon, the professionals at Cushwake in Milan use a single keyword: Chanel. The French luxury house has moved into a new store here, showcasing shoes, jewellery, eyewear and leather goods in an elegant 520 square meter setting. By doing this, Chanel made the street even more attractive and increased its value; the next new tenants will likely feel this in terms of price, too.

In any case, Cushwake sees top rents at this Milan location being 31 percent higher than before the pandemic, and also 20 percent higher than a year ago.

Install digitization in store

Movements like Chanel’s in Milan show that a great offline presence is still important for powerful brands and retailers. Brandenberg also feels this on Zurich’s Bahnhofstrasse, from a sector previously less visible on local high streets: “Demand is still high in the car brand sector. “It is clear from Bahnhofstrasse that after Genesis and General Motors, other providers also want to open new locations here.”

Ultimately, the winners in the race for consumers and the visitors attracted by ‘Lucy’ will be those who perfectly integrate offline and online on the high street, says Brandenberg: “Retailers still need the space to focus and they need to stand out. Then you have The challenge is to incorporate digitalisation into your offline concepts.”

Source :Blick