Sydney's Pitt Street is the seventh most expensive street in the world, according to Cushman & Wakefield’s latest 'Main Streets Across the World 2017' report.

Top 10 most expensive locations by country

Source: Cushman & Wakefield, 'Main Streets Across the World 2017'.

In the Asia Pacific, Sydney ranks third, while Melbourne comes in at fifth, and Brisbane at eighth.

Asia Pacific - Top 10 most expensive locations

Source: Cushman & Wakefield, 'Main Streets Across the World 2017'.

The report notes the trend in Australia towards suburban malls, which has freed up space for global brands to enter CBD shopping centres. For example, in Melbourne's Bourke Street mall, a site occupied by a number of small stores was consolidated for a large H&M store, notes the report.

The major retail stores in Australian CBDs are H&M, Zara, Uniqlo, Sephora, Pandora, and Swarovski, and the most successful retail sectors have been fast fashion, cosmetics and luxury. Athletic wear has also done well.

The resurgence of inner city living in Australia is likely to drive continued strong retailer demand, the report predicts. Further liberalisation of shopping hours in Melbourne and Sydney could also provide the potential for further growth, notes the report.

The report notes a number of global trends in commercial real estate:

• structural change due to the growth of online shopping
• increasing overlap between physical and online shopping
• fewer, but larger stores
• population growth is a major driver of retail

Despite changes in the retail sector, in particular growth in online sales, the report says retail real estate has held up relatively well.

"Amidst the headlines around the continued growth in online sales, mall closures and retailers downsizing, rents for prime retail locations have actually held up well.

"In fact, over the year to June, global retail rental growth amounted to 0.5%, with 136 of the 451 locations monitored recording growth, while only 90 experienced a fall in rents," the report says.

Click here to read Cushman & Wakefield’s report 'Main Streets Across the World 2017'.

Read more about commercial real estate in Australia:

Big global brands increasing uncertainty in local retail market

Retail vacancies rise on Melbourne's well known shopping strips

The strategic approach to adding value to commercial property: Melbourne Acquisitions