Newmark has published a study on the Champs-Élysées, which sheds light on recent changes in retailing by comparing the Parisian avenue with other iconic shopping thoroughfares, including 5th Avenue in New York and Oxford and Regent streets in London.
All have seen a marked recovery from the pandemic with new store openings and expansion, and a sharp decline in vacancies.
A spectacular recovery
According to the Newmark study "Paris, London & New York, high streets at the heart of retail revolutions," the kernel of the recovery began in 2021 and is now accelerating due to a number of factors. The factors include the return of foreign tourists and the desire of retailers to focus on the best locations to establish new concepts that are ever more qualitative and spectacular, according to Antoine Salmon, co-director of Newmark's retail group.
A reduction in retail vacancy
The difficulties experienced by certain brands during the pandemic have created new opportunities for more dynamic players, such as those in the luxury goods and sportswear sectors. The health crisis actually created an opportunity for retailers to break into the prime markets, with an increase in the number of available premises and a more or less significant drop in rental values (down 25% since 2019 on the Champs-Élysées, compared with a 33% drop on 5th Avenue and a 6% decline on Oxford Street). This situation has contributed directly to the upturn in rental activity.
Transactions have multiplied on Oxford Street and the Champs-Élysées in particular, leading to a significant reduction in commercial vacancies (below 10% on5th Avenue and even below 5% on the Champs-Élysées and the two London arteries). "In particular, vacancy on the Champs-Élysées and Oxford Street has fallen to 3.5% and less than 1% respectively," continues Antoine Salmon.
A profound renewal of the retail offer
These movements also confirm the trend of recent years: a profound renewal of the retail dealmaking. Of the 13 transactions recorded since 2024 on the Champs-Élysées, almost 90% concern brands that were not previously present on the avenue, such as workout apparel retailer Alo Yoga, which will open its first flagship store in France at number 92 (ex-Zara) in 2026. In addition, the upmarket trend continues, illustrated by new arrivals in the luxury segment (IWC at number 73 and Balenciaga at number 125).
"The share of mid-range brands has fallen sharply, from 48% to 29% of locations between 2017 and 2024, while that of premium and luxury brands has risen by 9 and 19 points respectively! The face of the Champs-Élysées now contrasts sharply with that of Oxford Street, whose very mid-range positioning has been reinforced by the latest openings," wrote Vianney d'Ersu, the co-director of Newmark's retail group.
High rents, contrasting dynamics
Rents on the Champs-Élysées, 5th Avenue and Oxford Street remain the highest in their respective markets, along with those on the iconic luxury districts of Avenue Montaigne and Rue Saint-Honoré in Paris, Madison Avenue in New York and Bond Street in London. The status of these major arteries as "places to be" for the world's leading brands explains the particularly high rents they are willing to pay for their flagship stores.
In Paris, an analysis of average rents excluding goodwill disposals suggests an upward trend over the last 10 years ( up 17% compared to the 10-year average, and 12% compared to the five-year average).
Over the same period, an analysis of rents in New York (5th Avenue) and London (Oxford Street) shows a decline or stability compared with the pre-Covid situation. However, comparisons between arterial streets are complicated by the fact that calculation methods and market practices differ significantly from one country to another.