The flagship store on Russell Street, which is leased by the British brand BURBERRY for about 2 million yuan per month, is more than 5,000 square feet, and the lease will not be renewed at the end of the recent monthly lease, and the latest shop will be rented by the sporting goods store at about 1.2 million yuan per month, which is 40% lower than the old lease, but if compared with the peak monthly rent of 8.8 million yuan, the rent has fallen by 86%.
The above bunks are paved from A and B underground to the 2nd floor of the Golden Chaoyang Centre on Russell Street, with a total of three-storey duplexes with an area of about 5,200 square feet. The bunk was moved in by BURBERRY in 2010, when the monthly rent was as high as $7.7 million, and then in 2015 it was increased to about $8.8 million per month, which is the peak level of the rent for the bunk.
However, the retail market conditions then fell, the rent of the shop also fell from the peak period to 2 million yuan per month, last November the market has been revealed that BURBERRY will abandon the flagship store, the owner also re-launched the shop at that time to the market rent.
According to the latest market news, the shop has been leased by a large sporting goods store for about 1.2 million yuan per month, and the rent has fallen by 40%, returning to the level of 2004. The new tenants were heard to be louder by Under Armour.
In addition, agents familiar with the leasing of shops in the core area said that due to the slowdown in the retail market in recent months, the landlord attitude in the core area has also turned pessimistic, so there are "good tenants" such as large sports brands who prefer to rent at low prices, and also pointed out that the rent in the first year of the tenant may be lower than about 1.2 million yuan per month, and then the rent for two to three years will be adjusted again.
In fact, in the past two years, under the epidemic, a number of large international brands have withdrawn from Russell Street, including the plaza 2000 to 2nd floor duplex shops on The 2nd to 4th Russell Street, which was originally leased by PRADA for many years, with a monthly rent of 9 million yuan during the peak period, but withdrew in 2020 and was spun off and leased by "Toy King" Cai Zhiming.
