Luxury Rents Cool Across Top US Retail Streets

US luxury retail rents grew by 2.5% year-over-year, signaling a shift from post-pandemic spikes to a more balanced market.
While Georgetown, Worth Avenue, and Las Olas Boulevard saw double-digit rent gains, Oak Street in Chicago dropped by 14%.
Manhattan remains a key driver of the market, with Madison Avenue and SoHo rents rising and Fifth Avenue evolving into an experiential hub.

Key Takeaways

Rents Cool After Years Of Rapid Growth

Luxury retail rents in the US rose 2.5% last year, down from earlier post-pandemic double-digit growth, reports GlobeSt. According to Cushman & Wakefield’s Main Streets Across the World 2025 report, the national average masks a divided landscape. Georgetown in DC, Palm Beach’s Worth Avenue, and Fort Lauderdale’s Las Olas Boulevard saw double-digit gains, reflecting renewed interest in smaller, lifestyle-driven markets. Meanwhile, Chicago and Seattle experienced declines, with Oak Street in Chicago recording the nation’s sharpest drop at 14%.

New York Retains Its Role As Market Benchmark

New York continues to anchor the US high street retail scene. It holds three of the four most expensive corridors in the Americas. Rents on Upper Fifth Avenue remained flat. Madison and SoHo rose over 8%, driven by strong foot traffic and lower base rents. These factors are attracting tenants to spaces with strong visibility. Madison and SoHo offer luxury presence without Fifth Avenue’s premium cost.

Fifth Avenue Redefines Experiential Luxury

Despite flattening rents, Upper Fifth Avenue is evolving into a more immersive and pedestrian-friendly destination. A $400M public-private investment is transforming the area with wider sidewalks, new landscaping, and improved access for pedestrians. Recent retail additions reflect this evolution. Prada opened a men’s-only flagship at 720 Fifth Avenue, and Skims debuted a three-story boutique in the former Versace space. These developments highlight a shift from traditional retail toward spaces that emphasize brand identity, experience, and inclusivity.

Global Retail Rankings Reflect Currency And Market Shifts

On the global stage, Fifth Avenue dropped from second to third in the list of most expensive retail corridors. London’s New Bond Street and Milan’s Via Montenapoleone moved ahead, helped by favorable currency conditions and steadier rent increases abroad. Despite this shift, Upper Fifth Avenue remains the top retail location in the US, with average rents at $2K PSF annually—still a key benchmark for luxury retailers worldwide.