LONDON-In the measure of the world’s 10 most expensive shopping avenues, an upset has been staged in Europe, with New Bond Street now topping Paris’ famed Avenue des Champs-Elysees, according to Cushman & Wakefield’s Main Streets Across the World recent report. Fifth Avenue in New York City still tops the list, at $1,850 per square foot.

The Cushman & Wakefield report tracks rents in 269 shopping locations across 59 countries. Company researchers said this year has shown positive rental growth, with prime rents either rising or remaining static from July 2009 to June 2010, in contrast to the prior year that had the biggest global fall in rents in 25 years.

Though emerging global markets performed well, John Strachan, global head of retail, said the aftershocks of the recession are still being felt in the industry. “In the more mature markets, occupiers are expected to remain cautious and selective about the space they take. However, on the great shopping streets of the world, in cities such as London and New York, demand has continued to exceed supply and appetite of international brands has resulted in rental uplift.”

He said at present, the Asia-Pacific region has the best growth prospects. Hong Kong is close behind Fifth Avenue at $1,664 per square foot on its Causeway Bay and Japan’s Ginza avenue is at $877 per square foot. South Korea has jumped into the top 10, ranking eighth, with its Myeongdong retail area hitting $551 per square foot.

"The recent rise of Korea in the list is largely a result of its general economic recovery fuelled mainly by a very strong export market which saw a 7.2% rise in the second quarter of 2010,” said Mark Burlton, Cushman & Wakefield’s cross border retail partner for Asia. “Consumer expenditure initially lagged behind these optimistic figures but recent increases in dining out, clothing and footwear consumption give further confidence. Retail rents have returned to pre-credit crunch numbers with prime areas such as Myeongdong and Gangnam Station showing an average 17% increase this year. Global brands such as H&M and Zara have opened in prime locations having out-bid local retailers, and the rapid rise in low and mid-priced cosmetics companies have also driven rents upwards. These trends are likely to continue in the near term as demand is still very much outstripping supply."

New Bond Street, fourth in the ranking, jumped to the most expensive street in Europe at $836 per square foot. Peter Mace, head of Cushman & Wakefield’s central London retail division, said the street remains one of the most sought-after locations in the world for luxury brands. “The recent letting of 169 New Bond Street to Piaget represented a record rent for the street with the new tenant also contributing a significant premium to secure vacant possession,” he said.”There were four under-bidders for the store. This trend is likely to continue for the foreseeable future on the basis that there are still a large number of retail requirements that remain unsatisfied.”

Paris’ famous retail avenue fell to fifth, dropping 9.5% from last year to $793 per square foot. Christian Dubois, head of Cushman & Wakefield’s France division, said a new law allowing retailers to sell seven days a week should boost rents again. “The strong resistance from the municipality to grant approvals to new fashion retailers, the mismatch between the availability of large spaces and requirements for smaller stores from international retailers, combined with negative indexations of the rents, have all contributed to the lower ranking of Champs Elys