InsideLux – The Luxury News Authority

The price of renting retail space on the most expensive shopping streets around the world has seen the biggest drop in 24 years.

According to real estate brokers Cushman & Wakefield Inc. rental prices haven’t gone down to such a low level since 1985. Their report also found that Fifth Avenue in Manhattan, a haven for luxury shoppers, has retained it’s title as the priciest retail address for the eighth year in a row.

Somethings have changed on Fifth Avenue though, retail rental spaces usually occupied by luxury brands like Louis Vuitton and Chanel now cost 8.1% less than they did a year ago. Good news for companies wanting to save money where they can as they recover from the recession, bad news for the owners of these prime retail spots.

This pattern of falling rental prices on the most prestigious luxury retail streets has continued around the world. In Hong Kong’s popular Causeway Bay prices are down by a massive 15%. However the Avenue des Champs-Elysees, Paris has bucked the trend and prices have barely changed at all since last year.

What’s the cause of these tumbling property prices? Put simply, the aftermath of the global financial crisis. The head of retail at Cushman & Wakefield has said “The last 12 months have been one of the most difficult periods ever for the retail sector. The impact has been much more significant as the full impact of the downturn has been realized.”

A combination of lower consumer spending and higher unemployment rates around the world has also inevitably played it’s part in making 2009 such a hard year for luxury and highstreet retailers alike.

Click here to read more about this story at Bloomberg.com