London’s Old Bond Street, home to Louis Vuitton, Chanel, Saint Laurent and Ferragamo, has yet again landed the title of most expensive shopping street in Europe.
Property advisers Colliers International on Monday revealed retailers are now spending £838 per square foot per year as demand for space on Britain’s premium luxury street continues to outpace supply.
Old Bond Street managed to beat Bahnhoftstrasse in Zurich, which commands annual rents of £599 per square foot, and the iconic Champs Elysees in Paris, where tenants pay £536 per square foot.
“London is still the signature location for any brand that aspires to international luxury status,” Paul Souber, head of central London retail said.
“What we’re seeing is retailers paying key money – multi-million pound payments to take control of existing leases just to get a foothold on Old Bond Street. The leases changing hands may already be at current market rents, but retailers will still pay millions more for the rarity value to secure a store on the street,” Souber added.
Back in 2012, luxury watchmaker Breitling made headlines with its record-breaking £1 million-a-year tenancy rates. The same year, a report by Cushman & Wakefield found demand on both New and Old Bond Street outstripped supply by around ten to one.