What Caused Fifth Avenue To Sink Again?

According to the world clothing and shoe net, despite the many negative effects brought by the demonstrations during the presidential campaign to the shops near Trump building,

This year, it has taken the lead in the rental list of the world's commercial streets, with a rent of up to 3000 dollars per square foot per year.

If compared with 2015, its ranking is rather reluctant. From the rental figures, it fell by 14.29% compared with last year.

This is the worst since the 2008 financial crisis.

The more serious situation is

The interest in coming to the flagship store is getting smaller and smaller.

In a sense, Fifth Avenue is regarded as an urban landmark like Champs Elysees street in Paris and Bond Street in London.

It rises from the Washington Square Park in the south to the 138th street in the north, and is a very important north-south trunk road in Manhattan.

It took New York more than 100 years to expand the vast expanse into what we are now familiar with.

It was the enrichment of the US business in the twentieth Century.

After entering twentieth Century, it became a place for skyscrapers to compete for heights. The Empire State Building in 1931 once became a must for all visitors to the United States.

Senior housing, department stores and boutique shops row upon row.

Viewers watching the movie Tiffany breakfast must be familiar with the scene: the heroine played by Audrey Hepburn will come to the Tiffany window in New York's Fifth Avenue every morning, eating the bread in her hand, and imagining that one day she can enjoy breakfast in a high-end jewellery shop.

If it's just a commercial street, Fifth Avenue may not be able to integrate into the bone and blood of New York's life as it is today.

In fact, all the important holidays in this city are related to it.

On Thanksgiving Day, people will be used to looking forward to Messi's parade, then rush into the department store to rush to buy.

When the Christmas season approaches, the big crowds gather in front of Fifth Avenue to enjoy the beautiful and creative Christmas windows.

The brand is proud of being able to open flagship store in Fifth Avenue. Where is its charm?

Chanel, Louis Vuitton, Gucci, Prada, Giorgio Armani...

Fifth Avenue, between 60 street and 34 street, has become a "dream Street" because of the collection of many famous brand shops. Sax Fifth Avenue boutique department store and Bo Dorf Goodman department store are important places for global tourists to New York.

Fifth Avenue has the largest number of

Flagship flagship store is regarded as an important retail and marketing strategy.

Let's take the popular Fifth Avenue as an example.

You have enough capital to pay high rent.

You are confident that you will be alongside Cartier, Tiffany, Apple and other famous brands.

The brand is used to shop in the landmark commercial center, sometimes up to three or four storehouses, such as Tiffany's Fifth Avenue store, which shows all kinds of brands.

These beautifully decorated shops appeal to global shoppers like magnets.

This is not the first time that Fifth Avenue has experienced ups and downs. What is it this time?

However, Fifth Avenue, which has expended time and effort in New York, does not seem to be so popular now.

The twenty-eighth annual commercial street rent analysis report from Cushman & Wakefield, a commercial real estate brokerage company, shows that the world's economic development has been weakening in recent years, and the commercial real estate rental market has been hit.

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In the light of the uncertain economic situation and the reduction of luxury consumption, the air rent rate has increased in some areas.

High latitude global data show that in the third quarter of this year, Fifth Avenue's vacancy rate hit a record high, rising to 15.9%, compared with 10% in the same period last year.

Because the rent is too high, retailers are reluctant to set up shop here.

"In the past 5 years, the growth rate of commercial rents has been higher than that of revenue growth, and more brands are in the stage of cost cutting," said Richard Hodos, vice president of retail industry in New York metropolitan area, CBRE.

In his view, the rent should be reduced by 30% or more to return to the acceptable level of the retailer.

In addition to cost factors, brands are beginning to reconsider the significance of flagship stores, which may fundamentally explain the current situation of passive shops.

But the digital age is changing the definition and composition of retail flagship stores.

"We found that sales on line and offline are being rebalanced."

Gene Spiegelman, vice president of high latitude global North America, said: "investment demand is still strong, but how to allocate investment in various markets?"

But Fifth Avenue is still the most deserving street.

Online fashion rental company Rent the Runway has opened a large store not far from Fifth Avenue.

"We regard it as a flagship store because of its volume and its technical content."

The company's president, Maureen Sullivan, says customers can directly pick up and deliver clothing on the return line, or check the inventory on site.

"Retailers used to want to sell more goods by flagship stores."

"When online consumption is more common, retailers have to consider putting many people experiential consumption into flagship stores, which is the latest definition," said Karen Bellantoni, vice chairman of RKF, a high-end property rental company in the United States.

To this day, you will rarely hear someone say, "I want to go to a certain brand flagship store". We are more concerned about the extra service in the physical store, which is worth our time and money to go out, to travel and to shop.

Coach not only recently provided customized services in the new store opened in Fifth Avenue, but also placed leather handwork shops, and the adidas flagship store not far away covers an area of 45 thousand square feet, more like a rough gymnasium, not only opening custom studios, but also juice bars and fitness books.

Another noteworthy phenomenon is that while the rent of Fifth Avenue is declining, a number of brands are quietly entering: sports brand shops such as Nike, Under Amour and Asics will be opened next year, plus the adidas that welcomes guests this December.

This is becoming a sports commodity street, showing the popularity of sports fashion in recent years.

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