Paris commands the highest rents for international retailers, says a report by Jones Lang LaSalle, followed by Zurich, Switzerland, and London.

“Paris continues to attract the biggest international and national brands that inevitably look to the city to open flagship stores, in particular the premium and luxury brands,” says James Dolphin, head of the company’s EMEA (Europe, the Middle East and Africa) retail agency.

High demand for retail space in the Parisian golden triangle – bounded by the Avenues des Champs-Élysées, George V and Montaigne – paired with limited supply has elevated rents in the area. Rental values paid by the luxury sector have almost doubled in 18 months on Avenues des Champs-Élysées, reaching 18,000 euros, reports Jones Lang LaSalle.

“There have never been as many acquisitions on the Champs-Élysées as during the past two years,” says Sophie Benaïnous, research manager at Jones Lang LaSalle. The Qatar Investment Authority purchased Virgin and Lido in 2012. So far this year, Pramerica has purchased Mercedes-Benz and AG Real Estate has bought Levi’s. These acquisitions alone totalled more than 1 billion euros.

On Avenue Montaigne, prime rental rates are as high as 9,000 euros, while on Rue Saint-Honoré – where Armani and Fendi joined Dior and Chanel this year – rents are up to 7,500 euros.

Though the golden triangle is at capacity, opportunities to capitalize on luxury demand are emerging in new districts. In the Haussmann/Opéra district on the Right Bank, Cartier, Tag Heurer and Omega are opening stores in late-2013 and 2014. The Saint-Germain-des-Prés district on the Left Bank is also seeing an increase in luxury retailers, with Ralph Lauren and Hermès opening stores over the last three years.