London’s West End is still one of the world’s most expensive retail destinations as retailers focus on the major fashion capitals and push rents in prime locations even higher.
According to the latest CB Richard Ellis Global Retail MarketView, New York’s Fifth Avenue remains the world’s most expensive high street destination, with rental values reaching $1,900 (£1,158) per sq ft – an increase of more than 10% in the last 12 months. London’s West End ($909 per sq ft) held fourth position, despite rental growth remaining flat year-on-year.
There was little change in the CBRE global retail rent rankings from the previous quarter. The notable exception was Hong Kong, which moved up to second position and became the fastest growing market in Q1 2011.
Sydney dropped to third position in the rankings and Zurich rose to fifth position after experiencing rental growth of 9%.
Ray Torto, global chief economist at CBRE, said: “The recovery in the global economy is multi-speed. Economic growth continues to be strong in Latin America and the Asia Pacific, but is much weaker in Europe and North America.”
“In the developed economies, the ability to maintain interest rates at a level that will encourage sustainable economic growth, while also keeping a lid on inflation, will be the key challenge.”
annabel.dixon@estatesgazette.com
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