Prime High Streets Europe

Prime High Streets Europe
October 2008

Prime High Streets Europe, October 2008
Summary
Jones Lang LaSalle is pleased to present
the first edition of Prime High Streets
Europe. The report provides prime rents,
annual rental growth and an indication of
likely short term rental growth for over
100 retail locations across Europe. A
wealth indicator for each location is also
given for comparison purposes.
Despite the worsening economic climate, turbulence in the
financial markets, and pressure on consumer spending through
higher inflation, the prime high streets of Europe have
performed relatively well over the last year and have prospered
in some cases.
In the twelve months since the beginnings of the credit crunch,
almost 70% of all locations assessed within this report
registered some level of growth between Q2 2007 and Q2
2008.
The primary cities of Greece and Turkey saw some of the
highest increases with Tsimiski Street in Thessaloniki, Ermou
Street in Athens and Bagdat & Istiklal Streets in Istanbul all
recording an annual growth of over 25% (mitigated somewhat in
Turkey by inflation at 10%). This is due largely to a limited
supply but strong demand for units, particularly from
International brands. High streets in London also performed
well, with prime rents on New Bond Street increasing to
€6,762/sqm/year, and Oxford Street climbing to
€5,372/sqm/year.
Moscow now boasts three out of the top five prime rental
locations in Europe, and with strong demand from the fast
growing middle class, a shortage of available space and a low
level of transparency, rental growth is expected to continue. Les
Champs Elysées however remains the most expensive street in
Europe in 2008 with prime rents currently standing at
€7,360/sqm/year.
Current retailer demand in the Ukraine is particularly strong,
with high street rents in Kiev projected to see substantial growth
over the next twelve months as competition for prime units
increases (though, as with Turkey, this is offset in part by high
levels of inflation). Several prominent locations in mature
markets, particularly Germany and The Netherlands, are also
anticipated to see solid rental growth through the year despite a
projected slowdown in the economy, again largely thanks to
2 COPYRIGHT © JONES LANG LASALLE IP, INC. 2008. All rights reserved.
major International brands seeking representation and a scarce
supply of prime space. The outlook is less favourable for areas
such as the Baltic States, where retail is concentrated within
shopping centres and their economies face particular
imbalance. A handful of western European locations, are also
expected to see some downward pressure on rents, most
notably in Spain.
In general, however, prime rental levels are expected to remain
stable as weaker consumer spending growth in most of Europe
is counter balanced by the continuing strength of occupier
demand for the best locations.
Most Expensive High Streets by Country
Country City Street
High St. Rent Previous
Inflation %
Q2 2008 Year Rental
2007 - 2008
€/sq.m/year Growth %
France Paris Les Champs Elysées 7,360 0.0 3.4
Russia Moscow Stoleshnikov Lane 7,035 0.0 14.1
UK London New Bond Street 6,762 17.7 3.8
Ireland Dublin Grafton Street 4,951 0.0 4.0
Germany Munich Kaufinger Straße/Marienplatz 3,600 15.4 2.9
Greece Athens Ermou Street 3,360 33.3 4.6
Austria Vienna Karntnerstrabe/Kohlmarket/Graben 3,000 4.2 3.7
Ukraine Kiev Kreshchatik st 2,702 6.7 24.9
Turkey Istanbul Istiklal Street 2,700 27.9 10.5
Spain Madrid Preciados 2,652 6.3 4.6
Denmark Copenhagen Stroget 2,550 0.0 3.5
Norway Oslo Karl Johans gate 2,460 11.1 3.7
The Netherlands Amsterdam Kalverstraat 2,265 7.9 2.5
Italy Milan Via Montenapoleone 2,200 0.0 3.6
Czech Republic Prague Na Prikope 1,800 30.4 6.7
Hungary Budapest Vaci Street 1,800 0.0 6.6
Luxembourg Luxembourg Grand Rue 1,700 0.0 4.0
Belgium Antwerp Meir 1,600 6.7 4.6
Romania Bucharest Bulevardul Magheru 1,500 13.6 7.7
Sweden Stockholm Biblioteksgatan 1,419 8.0 3.8
Portugal Lisbon Chiado 1,200 17.6 2.9
Finland Helsinki Aleksanterinkatu 1,188 8.8 4.0
Poland Warsaw Nowy Świat 1,080 20.0 4.3
Latvia Riga Elizabetes district 720 -14.3 15.8
Lithuania Vilnius Gedimino Av. 720 0.0 11.0
Source: Jones Lang LaSalle, EIU
Locations with highest Prime Rental Growth
Q2 2007 – Q2 2008
Actual Prime Rental Growth Q2 2007 - Q2 2008
70%
60%
50%
40%
30%
20%
10%
0%
Tsimiski Street,
Thessaloniki
Bagdat Street,
Istanbul
Source: Jones Lang LaSalle
Ermou Street,
Athens
Growth Prime Rent
Na Prikope,
Prague
Location
Istiklal Street,
Istanbul
Tunali Hilmi
Street, Ankara
Malsheva Street,
Yekaterinburg
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Prime Rent Q2 2008 in €/sqm/year

Prime High Streets Europe, October 2008
Country City Street Local Measure Prime High St. Rent Short Term Prime Rent Prime Rent Annual 2008 Index GDP
Q2 2007 Q2 2008 Rental Q2 2007 Q2 2008 Growth % per capita
Trend
Forecast
€/sq.m/year €/sq.m/year
Austria Vienna Karntnerstrabe/Kohlmarket/Graben Euro/sqm/month 240
Vienna Mariahilferstrabe Euro/sqm/month 120
Belgium Antwerp Meir Euro/sqm/year 1,500
Brugge Steenstraat Euro/sqm/year 1,000
Brussels Nieuwstraat Euro/sqm/year 1,600
Gent Veldstraat Euro/sqm/year 1,300
Hasselt Hoogstraat Euro/sqm/year 1,000
Knokke Kustlaan Euro/sqm/year 950
Leuven Diestsestraat Euro/sqm/year 700
Liege Vinave d'Ile Euro/sqm/year 1,100
Namur Rue de Fer Euro/sqm/year 900
Czech Republic Prague Na Prikope Euro/sqm/month 115
Denmark Copenhagen Stroget DKK/sqm/year 19,028
Finland Helsinki Aleksanterinkatu Euro/sqm/month 91
France Lyon Avenue de la République Zone A €/sqm/year 1,920
Paris Avenue de l’Opéra/Boulevard Haussmann Zone A €/sqm/year 4,600
Paris Avenue de Rennes/Boulevard Saint-Germain Zone A €/sqm/year 3,800
Paris Avenue de Rivoli Zone A €/sqm/year 3,800
Paris Avenue George V/Avenue Montaigne/Rue François 1er Zone A €/sqm/year 6,500
Paris Les Champs Elysées Zone A €/sqm/year 10,000
Paris Madeleine/Fbg Saint Honoré/Royale Zone A €/sqm/year 6,400
Paris Passy / Rue du Commerce Zone A €/sqm/year 3,100
Paris Rue des Francs Bourgeois Zone A €/sqm/year 3,000
Germany Berlin Kurfürstendamm Euro/sqm/month 190
Berlin Tauentzienstraße Euro/sqm/month 200
Bremen Sögestraße, Hutfilterstraße/Obernstraße Euro/sqm/month 110
Dortmund Westenhellweg Euro/sqm/month 190
Dusseldorf Königsallee, Schadowstraße Euro/sqm/month 200
Frankfurt Zeil Euro/sqm/month 225
Hamburg Spitalerstraße, Neuer Wall Euro/sqm/month 195
Hannover Georgstraße Euro/sqm/month 160
Köln Hohe Straße/Schildergasse Euro/sqm/month 205
Munich Kaufinger Straße/Marienplatz Euro/sqm/month 260
Nürnberg Karolinenstraße Euro/sqm/month 115
Stuttgart Königstraße Euro/sqm/month 210
Greece Athens Ermou Street Euro/sqm/month 210
Athens Tsakalof Street Euro/sqm/month 170
Larissa Kouma Street Euro/sqm/month 100
Thessaloniki Tsimiski Street Euro/sqm/month 120
Hungary Budapest Andrássy Street Euro/sqm/month 70
Budapest Vaci Street Euro/sqm/month 150
Ireland Dublin Grafton Street Zone A €/sqm/year 10,764
Dublin Henry Street Zone A €/sqm/year 6,674
Italy Milan Via Montenapoleone Euro/sqm/year 2,200
Rome Via Condotti Euro/sqm/year 2,100
Latvia Riga Elizabetes\Terbatas\Barona Street district Euro/sqm/month 70
Lithuania Vilnius Gedimino Av. Euro/sqm/month 60
Luxembourg Luxembourg Avenue de la Gare Euro/sqm/year 700
Luxembourg Grand Rue Euro/sqm/year 1,700
Netherlands Amsterdam Kalverstraat Euro/sqm/year 2,100
Eindhoven Demer Euro/sqm/year 1,250
Maastricht Grote Straat Euro/sqm/year 1,450
Rotterdam Lijnbaan Euro/sqm/year 1,425
The Hague Spuistraat Euro/sqm/year 1,200
Utrecht Lange Elisabethstraat Euro/sqm/year 1,450
Norway Oslo Bogstadveien / Hegdehaugsveien NOK/sqm/year 15,000
Oslo Karl Johans Gate NOK/sqm/year 18,000
3
250
130
1,600
1,100
1,600
1,350
1,000
1,000
800
1,200
950
150
19,028
99
2,000
4,600
4,000
3,800
6,500
10,000
6,400
3,300
3,000
210
220
110
210
225
260
215
180
215
300
125
230
280
180
110
200
70
150
10,764
8,181
2,200
1,800
60
60
700
1,700
2,265
1,360
1,535
1,485
1,280
1,510
17,000
20,000
4 2,880
4 1,440
3 1,500
3 1,000
3 1,600
3 1,300
3 1,000
3 950
5 700
3 1,100
3 900
4 1,380
3 2,550
4 1,092
4 1,413
3 3,386
3 2,797
3 2,797
4 4,784
3 7,360
3 4,710
3 2,282
3 2,208
4 2,280
4 2,400
4 1,320
4 2,280
4 2,400
4 2,700
4 2,340
4 1,920
4 2,460
4 3,120
4 1,380
4 2,520
3 2,520
2 2,040
4 1,200
3 1,440
3.5 840
3.5 1,800
3 4,951
2.5 3,069
3 2,200
3 2,100
1 840
3 720
3 700
3 1,700
4 2,100
3 1,250
3.5 1,450
3 1,425
3.5 1,200
3 1,450
2 1,845
3 2,214
1 2 3 4 5
Strong decline Stable
Strong growth
3,000
1,560
1,600
1,100
1,600
1,350
1,000
1,000
800
1,200
950
1,800
2,550
1,188
1,472
3,386
2,944
2,797
4,784
7,360
4,710
2,429
2,208
2,520
2,640
1,320
2,520
2,700
3,120
2,580
2,160
2,580
3,600
1,500
2,760
3,360
2,160
1,320
2,400
840
1,800
4,951
3,763
2,200
1,800
720
720
700
1,700
2,265
1,360
1,535
1,485
1,280
1,510
2,091
2,460
4.2% 106
8.3% 106
6.7% 95
10.0% 73
0.0% 149
3.8% 88
0.0% 75
5.3% 73
14.3% 66
9.1% 59
5.6% 58
30.4% 112
0.0% 116
8.8% 110
4.2% 90
0.0% 199
5.3% 199
0.0% 199
0.0% 199
0.0% 199
0.0% 199
6.5% 199
0.0% 199
10.5% 58
10.0% 58
0.0% 97
10.5% 72
12.5% 159
15.6% 186
10.3% 116
12.5% 80
4.9% 98
15.4% 131
8.7% 108
9.5% 139
33.3% 69
5.9% 69
10.0% 69
66.7% 69
0.0% 93
0.0% 93
0.0% 128
22.6% 128
0.0% 99
-14.3% 85
-14.3% 73
0.0% 59
0.0% 154
0.0% 154
7.9% 134
8.8% 82
5.9% 76
4.2% 86
6.7% 90
4.1% 97
13.3% 163
11.1% 163

Prime High Streets Europe, October 2008
Country City Street Local Measure Prime High St. Rent Short Term
Q2 2007 Q2 2008 Rental
Trend
Forecast
Poland Katowice 3 Maja Street Euro/sqm/month 50 55
Krakow Floriańska Street Euro/sqm/month 75 90
Poznan Półwiejska street/Paderewskiego street Euro/sqm/month 50 60
Warsaw Nowy Świat Euro/sqm/month 75 90
Wroclaw Świdnicka Street Euro/sqm/month 70 75
Portugal Lisbon Av. Liberdade Euro/sqm/month 85 75
Lisbon Chiado Euro/sqm/month 85 100
Romania Brasov Strada Republicii Euro/sqm/month na 60
Bucharest Bulevardul Magheru Euro/sqm/month 110 125
Cluj Eroilor Blvd., Ferdinand Street Euro/sqm/month na 80
Constanta Blvd. Tomis Euro/sqm/month na 60
Iasi Stefan cel Mare Blvd. Euro/sqm/month na 45
Sibiu Nicolae Balcescu Blvd Euro/sqm/month na 55
Russia Moscow Petrovka Street US$/sqm/year 8,000 9,000
Moscow Stoleshnikov Lane US$/sqm/year 10,000 10,000
Moscow Tverskaya US$/sqm/year 7,000 8,000
St Petersburg Nevsky Prospect US$/sqm/year 3,500 4,000
Yekaterinburg Malsheva Street US$/sqm/year 2,850 3,560
Spain Barcelona Paseo de Gracia Euro/sqm/month 180 192
Barcelona Puerta del Angel Euro/sqm/month 202 215
Bilbao Gran Via Euro/sqm/month 110 111
Madrid Preciados Euro/sqm/month 208 221
Madrid Serrano Euro/sqm/month 185 197
Malaga Larios Euro/sqm/month 135 136
Seville Tetuán/Velázquez Euro/sqm/month 120 121
Valencia Colón Euro/sqm/month 145 146
Zaragoza Independencia Euro/sqm/month 138 139
Sweden Göteborg Avenyn SEK/sqm/year 7,700 8,000
Malmö Södra förstadsgatan SEK/sqm/year 6,700 7,000
Stockholm Biblioteksgatan SEK/sqm/year 12,500 13,500
Turkey Ankara Tunali Hilmi Street Euro/sqm/month 70 88
Istanbul Abdi Ipekci Street Euro/sqm/month 141 169
Istanbul Bagdat Street Euro/sqm/month 88 123
Istanbul Istiklal Street Euro/sqm/month 176 225
Istanbul Tesvikiye Street Euro/sqm/month 141 169
Izmir Alsancak Euro/sqm/month 53 60
UK Birmingham High Street Zone A £/sqft/year 300 280
Cardiff Queen Street Zone A £/sqft/year 280 300
Edinburgh Princes Street Zone A £/sqft/year 215 215
Glasgow Buchanan Street Zone A £/sqft/year 250 250
Leeds Briggate Zone A £/sqft/year 300 300
Liverpool Church Street Zone A £/sqft/year 315 325
London Brompton Road - Sth Side Zone A £/sqft/year 525 525
London James Street, Covent Garden Zone A £/sqft/year 575 585
London New Bond Street Zone A £/sqft/year 620 730
London Oxford Street Zone A £/sqft/year 495 580
Manchester Market Street Zone A £/sqft/year 300 265
Newcastle Northumberland Street Zone A £/sqft/year 315 315
Nottingham Clumber Street Zone A £/sqft/year 250 250
Ukraine Kiev Bolshaya Vasilkovskaya st US$/sqm/month 240 260
Kiev Kreshchatik st US$/sqm/month 300 320
4 COPYRIGHT © JONES LANG LASALLE IP, INC. 2008. All rights reserved.
Prime Rent
Q2 2007
€/sq.m/year
3 600
3 900
3 600
3 900
3 840
3 1,020
3 1,020
660
1,080
720
1,080
900
900
1,200
3 na 720
3 1,320
1,500
2 na 960
3 na 720
3 na 540
3 na 660
3 5,628
4 7,035
3 4,925
4 2,462
4 2,005
2 2,160
2.5 2,424
2 1,320
2.5 2,496
2 2,220
2 1,620
2 1,440
2 1,740
2 1,656
3 809
3 704
3 1,314
3 844
2.5 1,688
2.5 1,055
3.5 2,111
2.5 1,688
2.5 633
3 2,125
3 1,983
2 1,991
3 2,316
3 2,125
3 2,231
1 3,719
1 4,073
3 5,743
2 4,585
3 2,125
3 2,231
2 1,771
5 2,026
5 2,533
Prime Rent
Q2 2008
€/sq.m/year
Exchange Rates (as at Sept 2008) 1 EUR€ = Russia US$ 1.422 • Ukraine US$ 1.422 • Denmark DKK 7.458 • Norway NOK 8.263 • Sweden SEK 9.636 • UK GBP£ 0.794
6,332
7,035
5,628
2,814
2,505
2,304
2,580
1,332
2,652
2,364
1,632
1,452
1,752
1,668
841
736
1,419
1,055
2,026
1,477
2,700
2,026
718
1,983
2,125
1,991
2,316
2,125
2,302
3,719
4,144
6,762
5,372
1,877
2,231
1,771
2,195
2,702
Annual 2008 Index GDP
Growth % per capita
10.0% 43
20.0% 56
20.0% 74
20.0% 107
7.1% 52
-11.8% 80
17.6% 80
na 27
na 52
na 30
na 30
na 19
na 26
12.5% na
0.0% na
14.3% na
14.3% na
24.9% na
6.7% 73
6.4% 73
0.9% 80
6.3% 80
6.5% 80
0.7% 49
0.8% 49
0.7% 56
0.7% 69
3.9% 77
4.5% 69
8.0% 109
25.0% na
20.0% na
40.0% na
27.9% na
20.0% na
13.3% na
-6.7% 72
7.1% 81
0.0% 116
0.0% 95
0.0% 84
3.2% 64
0.0% 185
1.7% 185
17.7% 185
17.2% 185
-11.7% 67
0.0% 72
0.0% 91
8.3% na
6.7% na
Glossary
Prime High Street Rent represents the top open market net rent that could be expected for a notional prime position shop situated in the prime retail location in a market, as at the survey date.
The rent quoted reflects in France, Ireland, Portugal and the UK a notional “standard” unit of 200 m² with 8-metre frontage, and 25-metre depth with half cover at basement or first floor level. In
Belgium and Luxembourg prime unit shop rents are based on 150 m² floorspace. In all other European countries the prime rents are representative of a standard unit of 100 m². Zone A in France
is representative of 100 m²; zoning practices in Ireland and the UK differ between locations.
The Short Term Rental Trend Forecast provides an anticipated rental trend, relative to local agency sentiment, on a scale of 1 to 5 with ‘3’ being ‘Stable’, ‘5’ equalling ‘Strong Growth’ and ‘1’
‘Strong Decline’.
GDP per capita is provided as an index against the average of all locations within this report, the value of which is set at 100. Figures are representative of the NUTS3 Region in which each
location is situated. Source: Experian, calculations Jones Lang LaSalle.

Prime High Streets Europe, October 2008
Recent Deals 2008
5
8
150 -151 New Bond Street, London UK
Prada trading as Miu Miu
- €6,206/sqm/year (£670 Zone A/sqft/year)
- GLA 390 sqm (approx)
37
Neur Wall 2-6, Hamburg Germany
Geox
- €2,160/sqm/year
- GLA 400 sqm (approx)

Contacts
James Dolphin
Head of pan-European Retail Agency
Jones Lang LaSalle
London
+44 20 7852 4623
james.dolphin@eu.jll.com
Neville Moss
Head of EMEA Retail Research
Jones Lang LaSalle
London
+44 20 3147 1187
neville.moss@eu.jll.com
COPYRIGHT © JONES LANG LASALLE IP, INC. 2008. All rights reserved. No part of this publication may be reproduced or
transmitted in any form or by any means without prior written consent of Jones Lang LaSalle. It is based on material that we believe to
be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors.