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The Warsaw Voice » Other » June 25, 2008
On the town
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Warsaw Mid-Pack Among Prestige Retail Sites
June 25, 2008 By P.M.    
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Warsaw's Nowy 安iat Street ranks 68th among the world's most expensive shopping streets in terms of monthly rent for retail space, according to a study by consulting firm Colliers International.

New York's Fifth Avenue remains the most expensive place to open a store, followed by the Champs-Elys嶪s in Paris and Moscow's Tverskaya, according to Colliers International. The study covered 133 shopping streets around the world.

Renting space on New York's Fifth Avenue costs an average $1,500 per square meter per month. Owners of buildings lining Paris's Champs Elys嶪s can expect to collect $1,300 per month. Rents on Moscow's Tverskaya Street are not much lower than in Paris. Further down the list is London's Bond and Oxford streets, with monthly rents of $1,000-$1,200 per sq m. Compared with these exclusive locations, Warsaw's Now 安iat is relatively inexpensive, at $142.

Demand for retail space in the most prestigious shopping destinations around the world continues to command rising rents in spite of signs of a global consumer slowdown, according to Colliers International.

Rents on Fifth Avenue have grown by 22 percent over the past year. Ma貪orzata Trzaskowska, head of retail at Colliers International in Poland, says demand for shopping space in the most prestigious locations remains high in practically all regions of the world. Since the supply of such locations is limited and global demand keeps rising, Trzaskowska says, the upward trend is expected to endure, both in the long and short run, despite the economic slowdown predicted for this year. Retailers are increasingly seeking prestigious locations for brand-name stores, especially those selling luxury goods. Demand for this sort of space is predominantly generated by high-end fashion retailers who continue to look for high-profile, high-traffic locations in an attempt to better position their brands.

"Compared with other capitals around the world, Warsaw has huge potential in terms of rent increases in the most attractive locations," said Trzaskowska. "This potential will be put to use slowly but surely. Trendy and expensive shopping streets in London, New York City and Paris have been there for decades, whereas in Poland attractive boutiques have only just begun to spring up and prestigious brands are starting their expansion in a trend that will intensify as the number of affluent buyers increases. Things will look similar in Prague, Kiev, Sofia and Budapest, cities where the number of wealthy customers is growing continually. The trend will persist even if there is a recession, as the market for luxury goods is characterized by stable demand."

In Central and Eastern Europe, Warsaw's Nowy 安iat ranks behind Prague's Na Prikope Street, where the average monthly rent is $347.50, Belgrade's Kneza Mihaila Street ($316), and Budapest's V塶i Street and Bucharest's Magheru-Balcescu Boulevard, where the average rents stand at $252.
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