Grafton St retail rents fourth highest in Europe

DUBLIN'S GRAFTON Street remains the fourth most expensive retail location in Europe, according to the Prime High Streets Europe report by Jones Lang LaSalle. With rents of €4,951 per sq m (€460 per sq ft), it is behind the most expensive, Champs-Elysées in Paris, Stoleshnikov Lane in Moscow and New Bond Street in London, writes Edel Morgan

Stephen Murray, retail director of Jones Lang LaSalle in Dublin, says Grafton Street comfortably retains its fourth position with an overall rent per square metre that's 37 per cent higher than its nearest rival, Munich.

He says that despite the slowdown in the economy, there have still been a number of newly announced occupiers for larger-sized units. These include three American or Canadian brands - Tommy Hilfiger, American Apparel and Aldo Shoes - which have not yet completed their fit-outs or commenced trade.

The Grafton Street rents compare to €7,360 per sq m (€684 per sq ft) on Champs-Elysées, €7,035 per sq m (€654 per sq ft) on Moscow's Stoleshnikov Lane, and €6,762 per sq m (€628 per sq ft) on London's New Bond Street. The report also includes Dublin's Henry Street with rents of €3,763 per sq m (€350 per sq ft).

According to James Dolphin, head of European Retail Agency at Jones Lang LaSalle, the prime high streets of Europe have performed relatively well over the last year "and in some cases have prospered, despite turbulence in the financial markets and pressure on consumer spending. In general prime rental levels are expected to remain stable across the region as the weaker consumer spending growth in most of Europe is counter balanced by the continuing strength of occupier demand for the best locations."

In Moscow strong demand from an increasingly wealthy population, a shortage of available space and a low level of transparency mean that rental growth is expected to continue.

The primary cities of Greece and Turkey saw some of the highest rental increases with Tsimiski Street in Thessaloniki, Ermou Street in Athens and Bagdat and Istiklal streets in Istanbul all recording an annual growth of over 25 per cent.