Increasing rent in Sydney's Pitt St Mall has helped cement the shopping precinct as the seventh most-expensive shopping strip globally.
According to Cushman & Wakefield's Main Streets Across the World report, a 17.9% increase in retail rents to $16,500 sqm has kept the retail strip in seventh place.
According to the report, retail rents for Pitt Street Mall grew more than any other top 10 ranked global retail location.
This is driven by demand from retailers for flagship stores and growing store footprints among major cosmetics and luxury brands.
The 2019 Main Streets Across the World research tracked rents for 448 locations across 68 markets - the largest data set since the research began in 1988 - and ranked Hong Kong's Causeway Bay shopping hub as the world's most expensive with rent at $42,065 per sqm.
Cushman & Wakefield national director of retail leasing Australia and New Zealand Matt Hudson, said that streets surrounding Pitt St have also seen an increase in rents.
"Pitt Street Mall continues to hold its place among the most popular retail destinations worldwide.
"Rents in Sydney’s retail core have reached new highs as retailers focus on evolving the customer experience and trialling new store formats to attract shoppers.
"For example, we recently saw Aesop introduce an amphitheatre for customers within their new global flagship store which set a new record for retail rents on Pitt Street Mall.
"Higher footfall areas around Pitt Street Mall are becoming more hotly contested with strong demand from high-end luxury and footwear retailers for flagship sites along George and King Streets.
"As a result, we’ve seen rents almost double along George Street as it opens up for business following the completion of the light rail. This has also presented an opportunity for landlords to reposition their sites.
"While there has been a stellar rise in rents along Pitt Street Mall, there is an increasing polarisation and rising pressure on incentives in many lower foot-traffic locations across Sydney.
"For these areas, rents are more likely to be stable rather than rising as retail conditions remain challenging and online competition continues to gather pace," he said.
Source: Cushman & Wakefield Main Streets Across the World report
