Milan’s Via Montenapoleone Is the Most Expensive Retail Destination in the World

LONDON — Milan’s Via Montenapoleone is the most expensive retail destination internationally, outstripping competitors across the U.S., Europe and the Far East, according to Cushman & Wakefield’s latest “Main Streets Across the World” report.

Each year, Cushman looks at the retail rental rates of the most prestigious shopping streets, ranks them on a rent-per-square-foot basis, and analyzes the trends in supply and demand.

The international real estate firm said that in 2024 global rents across 130 top locations were nearly 6 percent above pre-pandemic levels, with growth of more than 4 percent year-on-year.

Via Montenapoleone, which ranked at number two last year, topped the chart with rents of $2,047 per square foot annually, 11 percent higher than last year.

Upper Fifth Avenue, between 49^th and 60^th Streets, in Manhattan ranked second, with rents of $2,000, broadly flat against the previous year.

In third place was New Bond Street in London with rents pitched at $1,762 per square foot annually, 13 percent higher than the year before.

Tsim Sha Tsui, or the main shopping street in Hong Kong, came in at number four, charging $1,607 per square foot annually, 7 percent higher than last year. Paris’ Avenue des Champs Elysées was ranked fifth, with stores costing $1,282, or 10 percent above the previous year.

Other top 10 destinations included Ginza, Toyko; Pitt Street Mall in Sydney, and Myeongdong in Seoul.

Cushman noted that Via Montenapoleone is the first European shopping street to top the rankings, while the U.S. was the strongest performing region in the world with rent growth nearly 11 percent higher year-on-year, a “significant increase” over 2023.

Miami’s Design District led the U.S. rental growth, surging more than 66 percent year-on-year, and 150 percent over the past four years.

“This explosive growth reflects the continuing retail strength in Miami and the extraordinary demand from designer brands, world-class restaurants, and art and experiential tenants,” the report said.

“The Miami Design District has become a key destination for consumers driving competition for space from occupiers and developers alike,” it added.

There is more to come in the hot south Florida city, with plans to develop a 65,000-square-foot mixed-use project incorporating both retail and office components.

Meanwhile, Miami’s Brickell Boulevard Corridor and Wynwood Region also performed strongly, experiencing rental growth of more than 33 percent and 25 percent, year-on-year, respectively.

Cushman also noted that despite steep interest rate hikes and weakened consumer sentiment over recent years, “prime retail destinations have successfully weathered the impacts,” recording mostly positive growth in 2024.  

Barrie Scardina, president of Americas retail services, agency leasing and alliances at Cushman & Wakefield, described 2024 as a worldwide “inflection point,” with average rents exceeding pre-pandemic levels by 6 percent.

“While this benchmark was achieved earlier in the U.S., with a resounding 11 percent uptick in rental growth this year, the Asia Pacific region has now crossed this threshold, and Europe is steadily closing the gap. This highlights the varied pace of economic recovery across regions and signals overall resilience in the retail market globally,” Scardina said.

She added that in the U.S., retailers are clearly “committed to the value of physical stores in super-prime locations.

“Despite cost pressures, successful brands are delivering strong results by adapting to changing consumer preferences, focusing on analytics and data-driven strategies, and fostering innovation. As recession fears soften and consumer sentiment improves, the retail sector is well-positioned for continued stability and growth in the year ahead,” she said.

Globally, 57 percent of the streets tracked by Cushman experienced positive rental growth, with 14 percent registering rental decline.

Cushman’s report also pointed out the growing importance of physical retail.

“In many respects [retail stores] are more important than ever, and there are several key reasons for this, though showcasing innovation and brand presentation are among the most important ones,” said the report.

Physical stores and immersive experiences are helping to cement brand loyalty, Cushman said, adding that “while e-commerce plays a role in an omnichannel strategy, it is the physical embodiment of the brand that customers connect with. For this reason, luxury brands continue to scour strategic locations in search of suitable space.”

It pointed to Jacquemus’ recent opening in SoHo, New York, and Toteme taking space on Los Angeles’ Melrose Avenue.

“While luxury brands have long been the benchmark for setting the standard of occupying standout locations, more retailers are looking to emulate them. There is perhaps no clearer articulation of this than Ikea, traditionally an occupier of suburban retail warehouse space, opening a new store in London’s Oxford Street in 2025, and committing to a new development on New York’s Fifth Avenue scheduled for completion in 2028,” said Cushman.

The estate agency added that Ikea is not alone, and that other retailers have been drawn to super-prime retail locations as well. Sports footwear brands On and Hoka have experienced “significant growth and are targeting expansion of flagship stores in north Asia. Examples of this trend are truly global, highlighting the universal appeal of these locations,” according to Cushman.