Page 55 - #182 June 2023

New York

New York Paris
New York City is one of the world’s premier shopping destinations, Where to begin with Paris, it’s a city that everyone feels they
topping “best of ” lists and drawing visitors from across the globe. know something about, romanticised and idolised as the backdrop to
The retail sector is a vital part of the city’s economic and social countless advertising campaigns, films and books. According to Knight
landscape, with businesses ranging from corner grocery stores Frank’s ‘Europa Cities Guide 2022 – Paris’, this is hardly surprising
to renowned department stores in locations across the city. The given that Paris is often regarded as the capital of the arts, also
Covid-19 pandemic has affected the retail trade sector unevenly, popularly referred to as the ‘City of Light’. Universally recognised as
with online retailers and some essential businesses experiencing one of the world’s most beautiful cities and centres of high culture;
growth and other large retail segments seeing falling revenues. fashion, cuisine, art and cinema are tightly woven into the historical
CBRE’s ‘Retail Markets in Focus: New York City’ explains that New fabric of Paris. Despite its rich history, Paris is a city that never fails
York’s retail sector has faced significant challenges over the past to look to the future and is considered one of the most diverse cities
few years, including high pre-COVID rents that increased operating in Europe. Although sprawling, it has a distinctive village-like culture
costs, a population that migrated to suburban locales during the within its 20 arrondissements, with many Parisians tending to shop
pandemic and the emergence of hybrid work, which reduced in- and socialise locally within their quartiers – the further division within
office attendance. However, an educated population, abundant mass each arrondissement. Knight Frank’s French Property Markets – 2022
transit and renowned high-street districts that attract local, regional Review & 2023 Outlook: Investment, Office & Retail highlights that in
and international visitors set the stage for a recovery. According to 2022, the Paris retail market benefited from the continued recovery
Cushman & Wakefield’s Q1 2023 Manhattan Retail Report, New in international tourism. With 86.7 million arrivals at Paris airports,
York City’s economy is showing a sign of improvement as tourism 80 per cent of which were foreign passengers, traffic is up 107 per
in the city continues to rebound and it is now on track to grow to cent compared to 2021 and is gradually approaching the 2019 level.
63.3 million in 2023 and surpass 2019 numbers by 2024. Manhattan In addition, the report highlights that 38 luxury shop openings were
retail leasing continued its positive trajectory into the first quarter of identified in Paris for 2022, five more than in 2021 and nine more than
2023. Available retail space declined or held steady in nine out of 11 in 2020. Iconic projects have also been opened, such as Cartier at 13
tracked submarkets on both a quarterly and annual basis, with select rue de la Paix, Dior at 30-32 avenue Montaigne and Chanel at 21 rue
submarkets at historic lows since the 2015 and 2016 troughs. The du Faubourg Saint-Honoré. This trend will continue in 2023 and 2024,
largest lease of the first three months of 2023 was a five-year deal for with the expected openings of Saint Laurent on avenue des Champs-
LVMH at 6 East 57th Street near Upper Fifth Avenue, where LVMH Élysées and avenue Montaigne and Gucci and Alexander McQueen on
will take over the former Niketown space. rue Saint-Honoré.

Paris