Grafton Street is 15th dearest in the world for retail rents

DUBLIN’S GRAFTON Street continues to fall in the rental rankings among the world’s principal high streets. The capital’s main shopping precinct has slipped two places down to 15th position in the study by Lisney affiliate Cushman Wakefield on rents in the top 278 shopping locations across 63 countries.

Grafton Street was in fifth position before the property market ran into serious difficulties in 2008. The fact that it has not fallen even lower than 15th place will come as a surprise as many of the traders on the street have successfully negotiated significant discounts because of the ongoing recession and the fall-off in consumer spending.

Lisney’s John Garvey says that Grafton Street’s slippage to 15th place puts it to around the same ranking as in the mid 1990s. The rate of decline in rents on the street had slowed significantly, falling 7 per cent in the 12 months up to June, 2011, compared to 26 per cent for the previous 12 months and almost 30 per cent for the previous year.

“Exceptional deals are available in the market at present for retailers looking to open new stores. A number of international retailers have taken up these offers over the past year. The majority have never before traded in Ireland and they are taking advantage of the newly competitive and flexible nature of the market,” said John Garvey.

On a broader scale, the report shows that despite the fragile economic recovery and subdued consumer sentiment in many countries, global retail markets have rebounded strongly over the past year. More than 80 per cent of the countries surveyed reported that prime rents had either increased or remained static in the 12 months to June.

New York’s Fifth Avenue, where rents increased by 21.6 per cent, retained its dominant position with the highest rents for the 10th year in succession. Causeway Bay in Hong Kong remained in second position and Tokyo’s Ginza was third.

The fastest rising rents were at Pitt Street Mall in Sydney which jumped from ninth to fourth place following major redevelopments. Rents on this pedestrian street shot up by over 33 per cent during the year.

Despite a rental increase of 4.4 per cent, London’s New Bond Street fell from fourth to sixth place in the rankings.

The Champs-Élysées in Paris is now the most expensive retail location in Europe following a rental uplift of 5.3 per cent in the year to June.