New York City remains the world’s most expensive retail destination, with Hong Kong and Sydney at second and third place.
According to the latest CB Richard Ellis (CBRE) Global Retail MarketView, retailers focus on the major fashion capitals pushing global rents in prime locations even higher.
CBRE said, “The increased demand for the limited amount of prime retail stores led to a rise in global rents in the first quarter (Q1) of 2011. The overall total of rents recorded by CBRE grew by 1.9 per cent in Q1 and by 3.8 per cent y-o-y.”
Asia Pacific is said to have experienced rental growth of 11.1 per cent y-o-y despite enduring a series of natural disasters during the first quarter such as the Christchurch earthquake, floods in Queensland, and the Japan earthquake and tsunami.
“In Asia, rents rose steadily, underpinned by the ongoing expansion of international luxury and ‘fast fashion’ brands. Rental growth in the Americas is slowing, but remains positive, while Europe, Middle East, and Africa (EMEA) experienced a marginal increase over the last quarter. In general, there is still downward pressure on rents in secondary markets,” added CBRE.
Sebastian Skiff, Executive Director – Asia, CBRE Retail, said, “Demand for prime retail space remains strong across the Asia markets given the robust retail sales underpinned by strong employment growth and high level of tourist spending. In general, international retailers are looking to expand their footprint across the region, particularly in Hong Kong, Beijing, Shanghai and Singapore.”
Singapore is number 16 based on the average prime retail rent of US$470 per sq ft per annum (S$49.40 psf/ mth) in the first quarter of 2011. It was ranked number 15 half a year ago in November 2010 when the research was last undertaken, based on the average super prime rent of US$473 per sq ft per annum (S$51.80 psf/ mth) in the third quarter of 2010.
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