BGC is still the 43rd most expensive retail street in the world
Bonifacio Global City (BGC) in Taguig kept its ranking as among the top 50 most expensive retail streets in the world, according to the latest findings of a global commercial real estate services firm.
In the Main Streets Across The World 2024 report published by Cushman & Wakefield, the central business district was placed in the 43rd spot, remaining unchanged from its ranking last year.
BGC was noted to have had a three-percent increase in retail rent amounting to $51 (P2,990) per square foot per year.
Manila's major financial hub was followed by Anexartisisas Ave in Cyprus; Gedimino Ave., Pilies St., Didzioji St. in Lithuania; Kalku St., Valnu St., Audeju St., Terbatas St., Kr.Barona St. in Latvia; Viru Street in Estonia; Makedonija Street in Macedonia; and Calle Florida in Argentina.
Via Montenapoleone in Italy climbed from second to the top spot as the most expensive retail street in 2024, switching places with New York City's Upper 5th Avenue which previously held the ranking.
The report detailed that the upscale shopping street in Milan has increased its retail rents to 11% year-on-year amounting to $2,047 (P120,036) per square foot per year.
"This shift is attributed to strong rental growth over the past two years and the euro’s appreciation against the U.S. dollar this year," Cushman & Wakefield explained.
Other places that ranked high in the list include New Bond Street in the UK, Tsim Sha Tsui in Hong Kong, Avenue des Champs-Elysees in Paris, Ginza in Japan, Bahnhofstrasse in Switzerland, Pitt Street Mall in Australia, Myeongdong in South Korea, and Kohlmarkt in Austria.
"Despite economic challenges, main streets have shown remarkable resilience as headline rents globally finally surpass prepandemic levels," the report highlighted.
"Changing economic conditions, which recently have centered around inflation and interest rates, have far-reaching effects on main streets. Retailers must adapt to these conditions to maintain their competitive edge," it added.
Cushman & Wakefield tracked headline rents across 138 cities. Globally, 57% or 79 of the locations experienced positive rental growth, with just 14% or 19 registering a rental decline.
The report underscored that the US continues to be the "strongest performing region," propelled by rent growth of almost 11% year-on-year. In comparison, rent growth in Europe and Asia Pacific slowed, registering growth of 3.5% and 3.1%, down from 4.2% and 5.3%, respectively.
Despite this, Southeast Asian economies were still considered as having performed "strongly," driven in part by robust domestic consumption.
