Zurich is among the top three of the most expensive shopping streets in Europe, according to the new Retail Market Study 2010 of Location Group Zurich. Two years ago the top rent was at 4,879 (CHF 7,150), which rose to 6,467 (CHF 9,475).
High key money in Zurich
The level of the key moneys is a sign for the most successful shopping streets. Mostly retailers in the luxury sector as well as the successful fashion brands are shaping the price structure in Switzerland. The Swatch Group paid millions to secure a 600-m² retail space at Bahnhofstrasse 31 for its brand Breguet. Hermès rented the boutique of the local retailer Meister Silber at Paradeplatz with 700 m², between fashion house Bon Génie Grieder and the Hotel Savoy.
The three-year old shopping center Sihlcity is one of the big losers in the city of Zurich. The reasons are the position of the location in the south-west of Zurich, the unattractive tenant mix as well as the wrong architecture.
Geneva with record of new openings
There have never been so many debuts of top brands in the prime retail locations of Geneva in the history. The top rents at Rue du Rhône are 5,051 (CHF 7,400) per m². Beside Panerai and Graff Diamonds the jeweller Boucheron also has opened its first boutique in Switzerland. Audemars Piguet doubled its space at Place de la Fusterie. The French star shoe-designer Christian Louboutin launched his first Swiss boutique next to Jean-Paul Gaultier. Furthermore the following brands opened a new boutique in Geneva: Church's, Dior Horlogerie, Fendi, Hacket London, Hervé Leger, Hublot, Lanvin, Paul & Joe, Tara Jarmon, Victorinox und Vilebrequin.
The interest of retailers in prime locations in Switzerland is unbroken high, which results in higher rents as well as key moneys. "We are always able to find new retail spaces, but the available spaces are very rare. The demand for rental and purchase properties in A1 locations exceeds the supply disproportionately throughout Switzerland", said Marc-Christian Riebe, CEO of Location Group.
Source: LOCATION GROUP