Miami Beach’s Lincoln Road ranks as the 10th most expensive retail street in the United States, and Palm Beach’s Worth Avenue is not far behind, according to a new Cushman & Wakefield research report released Wednesday.
Rents on Lincoln Road have held steady for the past year, at $325 per square foot. Worth Avenue rents have jumped 20 percent, year-over-year, to $150 per square foot, marking one of the largest growth rates globally. Affluent residents, coupled with a rising number of international visitors and part-time residents have led to the growth, Cushman & Wakefield said.
The report, Main Streets Across the World, tracked more than 500 of the top retail streets. The two South Florida cities were the only ones in Florida among 21 cities nationwide that made the list. Worth Avenue tied with Boston and Georgetown at 14th place in the United States.
New York’s Upper Fifth Avenue again ranked as the most expensive retail street in the world, with rents rising to $3,500 per square foot in 2015, up 3.6 percent year-over-year. That makes it 46 percent more expensive than the world’s second ranked street, Causeway Bay in Hong Kong, according to the report.
The United States had seven of the top 10 most expensive cities in the Americas. Seattle posted the highest rent growth in the U.S., up 27.3 percent to $70 per square foot. Los Angeles posted the highest retail rents outside New York, at $800 per square foot, a 23 percent increase year-over-year.
Amid rising rents, Palm Beach’s Worth Avenue has attracted global luxury retailers, such as Cartier, Chanel, Giorgio Armani, Graff, Gucci, Hermès and Louis Vuitton.
In Miami Beach, Lincoln Road’s rents and property values have skyrocketed in recent years, as national and international investors and retailers have targeted the pedestrian promenade. Tenants include H&M, Anthropologie, Intermix, Forever 21, Apple, Gap, Urban Outfitters and lululemon.
In September, Michael Comras and partner Jonathan Fryd sold an entire block on Lincoln Road for $370 million to a Spanish billionaire. Amancio Ortega, whose fashion empire includes Zara, purchased the 1001 to 1035 block. Forbes ranks Ortega as the fourth richest person in the world.
Improvements for the popular street are now coming. In October, the Miami Beach City Commission approved a measure that will allow Lincoln Road business and property owners to create a Business Improvement District. The plan is to assess area business and property owners to create a maintenance and management program for up to 10 years.
Also in October, Miami Beach commissioners also approved a master plan for the street. Designed by New York landscape architects James Corner Field Operations, the plan will overhaul Lincoln Road – enlarging sidewalks, adding extensive landscaping and turning some side streets and back alleys into pedestrian walkways that will serve as new retail and restaurant venues.