The most expensive retail streets in the U.S. ranked by rent per square foot.
The price of prime street-front retail real estate space is climbing these days, according to Boston-based Colliers International’s 2006 report, “Retail Real Estate Highlights.” And while retailers continue to thrive in suburban locations, they have also been opting for space in urban environments. The report found that 75 percent of metropolitan areas across the country show urban retail continuing to grow. “Retail development in both suburban and urban locations is about as balanced as you can get,” said Ross Moore, director of economic and market research for Colliers. “But the clear message here [is]: Rents everywhere are going up. With the rising costs of both land and construction materials, we don’t anticipate a drop in prices anytime soon.”
1. FIFTH AVENUE, NEW YORK
Rent per square foot: $1,000
New York’s famed Fifth Avenue shopping strip again ranked number one, increasing its average rent by $50 per square foot. “If you don’t have a New York City address, you’re not a serious player,” said Ross Moore of Colliers. Why? “One of the trends you see is that retailing is becoming more global. If you look at Fifth Avenue [and 57th Street] today, of course you’ll find a number of U.S. retailers, but compared to 10 years ago, we’re now seeing more and more global retailers.” Think Cartier (left), Louis Vuitton, Versace and Bulgari. “Pick a country — it’s well represented if it’s a large global retailer.”
2. GEARY STREET/Union Square, SAN FRANCISCO
Rent per square foot: $515
A fashionable spot located in the shopping district of San Francisco’s Union Square (left), Geary Street also offers several upscale restaurants and luxury hotels. In February, Agent Provocateur opened a lingerie store on Geary Street, while other brands such as Salvatore Ferragamo, Louis Vuitton and Marc Jacobs boast locations in the area.
3. RODEO DRIVE, LOS ANGELES
Rent per square foot: $360
The top-ranked streets have a common link: They all attract a high amount of tourism. “God bless the tourists,” said Moore of Colliers. Rodeo Drive is one of the most popular and well-known streets in the world, and visitors to Southern California are sure to check out the strip at some point during their vacation. And because it’s located in Beverly Hills — one of the priciest regions of the country — residents can enjoy a quick trip to shops such as Hermès (left), Prada, Escada, Dior, Valentino and Versace.
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4. KALAKAUA AVENUE, HONOLULU
Rent per square foot: $360
Also known as “Luxury Row,” Honolulu’s Kalakaua Avenue doubled its rent to $360 per square foot this year. “When you see movement like this, the overriding issue is purely demand,” said Moore. “Tourism is skyrocketing, hotels are full, demand is high.” This retail strip is located in the heart of Waikiki and offers over 111,000 square feet of retail to shoppers. Popular destinations include Gucci, Bottega Veneta and Coach (left). In addition, Chanel’s 12,000-square-foot, three-level flagship can be found here.
5. NORTH MICHIGAN AVENUE, CHICAGO
Rent per square foot: $245
The Windy City’s “Magnificent Mile” is just that — a one-mile stretch of shops galore, located right along North Michigan Avenue. One can find everything from designer boutiques such as Chanel, Max Mara and Bulgari to department stores like Bloomingdale’s, Saks Fifth Avenue and Neiman Marcus. In fact, over 460 shops reside along the Mile, along with several hotels, such as Le Meridien Chicago and The Drake, where shoppers can crash at the end of a long day.
6. LAS VEGAS BOULEVARD, LAS VEGAS
Rent per square foot: $210
“Vegas just keeps getting bigger and bigger,” said Moore. “The interest in retail here coincides with the onslaught of restaurants, casinos and shows along this street.” Vegas has definitely taken on a life of its own. Moore also noted that much of the retail located here is in malls and inside of the casinos that line the strip. Examples: the Forum Shops at Caesars Palace, the Grand Canal Shops at the Venetian and the Wynn Esplanade shops at Wynn Las Vegas, which all make for some heavy-duty upscale shopping during a trip to Vegas.
7. WESTHEIMER ROAD, HOUSTON
Rent per square foot: $150
Designer boutiques are showcased along this upscale strip of Houston. Tootsies Highland Village carries both formal and everyday wear for women, while Festari for Men’s Italian-only line caters to the fashionable men in the area. Both Etui and Leonard Rutan Ladies Apparel also boast plenty of classic and fashionable styles for women. Perhaps the other big attraction on Westheimer is Houston’s Galleria Mall (left), one of the largest in the country, with 2.4 million square feet of retail space. The Galleria holds over 375 stores and restaurants, including anchors Neiman Marcus and Saks Fifth Avenue. Designer shops such as Yves Saint Laurent, Chanel and Betsey Johnson give the Galleria its upscale reputation.
8. STEVENS CREEK BOULEVARD, SAN JOSE, Calif.
Rent per square foot: $120
A walking tour along this street in California will let you shop at all types of stores. From designer boutiques to discount shops, consumers can rest assured they’ll find what they’re looking for along Stevens Creek Boulevard. Westfield Valley Fair mall, at 2855 Stevens Creek, is home to close to 400 retailers — new tenants include Gap subsidiaries Forth & Towne and Old Navy. Soon to come: Juicy Couture, The North Face and New York & Co. Another popular destination is Santana Row (left), which offers a wide selection of over 70 shops, including everything from Gucci to Ann Taylor Loft to Crate & Barrel.
9. WALNUT STREET, PHILADELPHIA
Rent per square foot: $100
Yes, upscale shopping is a fun pastime, even for a city known for cheesesteaks, “Rocky” and the Liberty Bell. Along Walnut Street, Burberry, Zara, Brooks Brothers and Kiehl’s line this retail haven. Philadelphia is home to the Urban Outfitters conglomerate, so it’s only fitting Walnut Street houses one (left), along with its women’s apparel and housewares chain Anthropologie. Also located along Walnut Street are plenty of upscale dining joints, including Le Bec-Fin and Alma de Cuba, in case shoppers become weak during their spree here.
10. PROSPECT STREET/GIRARD AVENUE, SAN DIEGO
Rent per square foot: $90
Dubbed the “Rodeo Drive” of San Diego, Prospect Street at Girard Avenue — located in ritzy La Jolla — is heavy on art galleries and restaurants, as well as high-end designer boutiques. Shops such as Louis Vuitton, Gucci and Cartier are represented here. An added bonus: San Diego’s idyllic weather allows shoppers to spend the entire day outdoors exploring Prospect Street. They can end the day with a walk to the ocean, conveniently located just a stone’s throw from this retail mecca.
Source: colliers international, a Boston-based real estate brokerage company; *indicates a tie