Photo: Ian Muttoo/Flickr
Toronto’s Bloor Street West is Canada’s costliest main street for retailers, according to a report from international commercial real estate brokerage Cushman & Wakefield.
“Consistently achievable” rent, also referred to as the “prime rental value” in the report, is $250 per square foot on a year-long lease on Bloor West, the Main Streets Across the World research publication suggests.
On a 1,000-square-foot storefront, this works out to $250,000 per annum. All rents are expressed in US dollars in the report.
Philip Traikos, Cushman & Wakefield’s vice president of investment sales at its Toronto office, clarifies this rate doesn’t apply to Bloor in its entirety, but instead the stretch from Yonge Street to Avenue Road, known colloquially as “The Mink Mile” for its high-end shops like Holt Renfrew and Burberry.
The near-term outlook for this stretch of Bloor is flat, a projection Traikos links to upscale retailers fanning out along other streets in the Yorkville neighbourhood.
“You’re seeing some movement with retailers going to Yorkville and Cumberland, so Bloor Street’s basically expanded a little bit in terms of the luxury tenants are now willing to locate off of Bloor,” he explains.
Prime rental rates are based on proprietary transaction information that Cushman & Wakefield agents have access to, says Traikos.
“The lease deals are not generally made public. The industry kind of knows and retailers know, and the retailers work with each other to find out what people are paying — and that’s how you find out,” he adds.
Bloor’s prime rental rate makes it the sixth most expensive street in the Americas, according to the report, while Robson Street in Vancouver is eighth at $166 per square foot.
Other notable Canadian streets were Ottawa’s Wellington Street, the most affordable in the Americas with a per-square-foot cost of about $31, and Edmonton’s Whyte Avenue, which saw year-over-year rents increase 16 per cent, the greatest leap any street in the Americas made.
A list of the most expensive locations in each of the 71 countries the report covers is also included in the report, containing information collected as recently as June 2016.
Bloor earned the 22nd spot, seven dollars behind Stroget in Copenhagen, Denmark, and two dollars ahead of Na Příkopě street in Prague, Czech Republic, on a per-square-foot-cost basis.
The most expensive street for retailers out of all 462 that Cushman & Wakefield analyzed was New York’s 5th Avenue from 49th to 60th Streets, where leasing agents can regularly secure tenants at a rate of $3,000 per square foot.