Fifth Ave. top shop spot.

New York's Fifth Avenue has retained its top position as the world s most expensive shopping street in the world, according to Main Streets Across the World, an annual report by Cushman & Wakefield, the world's largest privately held real estate services firm.

An average 1,000 square foot unit on Fifth Avenue, at its most expensive stretch near the junction with 57th Street, now costs around US$1,350 per square foot.

Gene Spiegelman, executive director of Cushman & Wakefield in New York, said: "The world's top brands are jostling for position in this prime stretch of retail. This is not just about sales at the till, but about the brand value of retail real estate.

"In a world of advertising 'clutter', we see companies increasingly leveraging their brands through real estate and Manhattan's Fifth Avenue! is a prime example of this trend.

"The trend-setting Abercrombie & Fitch flagship at 56th Street and Nokia's flagship on East 57th Street, which follows Apple Computer's success at Fifth Avenue and 59th Street, as consumers continue to pursue advances in technology and communication, are among this year's most high-profile openings on Fifth Avenue. Waiting in the wings is what may be the world's highest value retail lease--that of the former Asprey store at Trump Tower at 56th Street.

Main Streets Across the World 2005 tracks retail rents in the world's top 233 shopping locations across 47 countries around the world. The report's global league table is drawn up by taking the most expensive location in each of the countries monitored.

John Strachan, Cushman & Wakefield's Global Head of Retail, said: "Worldwide, the sector has seen a vibrant year, with new store openings, new formats, retailers entering new markets, in particular the emerging markets, and existing projects being refurbished in more developed markets to cater for evolving consumer and tenant demand."

The world ranking saw little movement at the top, with Hong Kong (Causeway Bay) retaining second place and Paris (Avenue des Champs Elysees) in third. The biggest riser was the Indian capital of New Delhi, with the most expensive location being Khan Market, having gone up 17 places to now be in 24th place.

Sanjay Dutt, executive director for transaction services, Cushman & Wakefield in India, said: "The 'organized' retail sector in India is forecast to grow by around 40-45% on an annual basis over the next five years. Currently it has a mere 2i 3% share of the total market, but this is foreseen to grow annually by 12-14% by the end of this, decade." India s retail growth story has been spurred by the country's rapid economic growth and by increasing levels of disposable income, together with a higher consumer awareness towards Western trends.

According to Sanjay Dutt, branded players look for quality space in a good location, which is exactly what Khan Market offers.

This has pushed up rents in the district because of a lack of available space. The area is located in the heart of a premium residential pocket, housing diplomats, industrialists, civil servants and high-net worth individuals, and offers a mix of local and international brands, including Nike, Benetton, Swarovski, McDonald's, Barista and Bandhej, among others."

On a regional basis, Asia Pacific has seen the highest rental increases in local currency terms; rents are up 20 percent in the year to June 2006.

Sebastian Skiff, Cushman & Wakefield's head of retail in Asia Pacific, said "In China, the government has recently approved a significant number of applications by foreign retailers, unlocking the doors for a flood of new retailers entering what is one of the world's most dynamic emerging markets."

Worldwide, rents rose or were stable in 97% of locations monitored, falling in only 3%. Darren Yates, Associate, European Research, Cushman & Wakefield, and the report's author, said: "The demand for modern retail property will continue to grow worldwide, in particular with the opening up of large and increasingly wealthy consumer markets such as India, China, Brazil and Russia, where the demand for consumer goods is growing rapidly together with the need for top-class retailers and high-quality retail facilities."

Main Streets Across the World is based on data collected in June 2006 from Cushman & Wakefield's offices around the world.