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High rents persist in high streets around the world

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Retail rents in prime global high street locations continue to remain high with the usual suspects leading the list, according to recent insight from CBRE.

According to the real estate firm's Q3 2014 analysis of worldwide retail rents, Hong Kong has maintained its status as the most expensive high street retail market in the world - by a "substantial margin". Rents in the city fetch US$4,327 per square foot per annum.

As CBRE notes, these rates are significantly higher than those seen in the second-placed city, New York (US$3,570 per square foot per annum). The research pointed out, however, that prime rent on Fifth Avenue is at record levels.

Other big players such as Paris, London and Tokyo also head the list, taking out third, fourth and fifth place respectively. Two Australian cities made the top ten as well - Sydney in seventh place and Melbourne rounding out the list at number 10.

CBRE's Global Chief Economist, Richard Barkham, said demand has been "reasonably firm" in the majority of markets despite mixed economic outlooks and sentiments.

"We can expect to see a continuation of the post-crisis pattern of periods of optimism followed by periods of pessimism. The Americas will see stronger growth than the Eurozone, as the latter has been constrained by restructuring in the banking sector as well as overly tight fiscal and monetary policy," he added.

"Asia Pacific will record slightly lower growth in 2014 over 2013, but is still expected to outpace the other two regions by a considerable margin."

The report certainly provides valuable insight to those looking to invest in retail property, giving an indication of where the current global hotspots are. Commercial investors can take advantage of the latest property valuation software to ensure they make the right moves in the market.

Date Published: 16 Dec 2014
Category: General NewsNews

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