Mapic 2012: Fifth Avenue in New York has lost its spot as the most expensive retail destination in the world for the first time in 11 years to Causeway Bay in Hong Kong. According to Cushman & Wakefield’s report, Main Streets Across the World, of the 326 locations in 62 countries surveyed, a total of 147 saw rents increase. Just 49 (15%) experienced rental declines, compared with 19% in 2011. Hong Kong’s Causeway Bay saw a large surge in demand and leasing activity which produced a 34.9% hike in rental values to $2,630 sq ft (£1,656 sq ft). Rents on Fifth Avenue in New York by comparison stand at $2,500 sq ft. The biggest climber in the top ten was Avenue des Champs-Elysees in Paris at $1,129 sq ft, which jumped two places into third position, leaving Ginza in Tokyo in fourth place at $1,057 sq ft. New Bond Street in London maintained its position as the sixth most expensive retail location worldwide, just below Pitt Street Mall in Sydney. Global retail rents remained resilient, recording a 4.5% average increase. The Americas showed the strongest rental growth of all regions. Prime rental rises in North American locations were driven by the strong performance of the US (16.3%) and Mexico (11.5%) while Canadian values recorded a marginal uplift. South America showed the strongest rental uplift by region, with prime rents increasing by 11.6%. Regional rental growth in Asia Pacific dipped to 8.6% compared with 12.2% in 2011 although occupier demand in the region remained robust. Asia Pacific also contained five of the 10 most expensive global locations. The retail sectors across Europe, the Middle East and Africa remained polarised over the year. Prime rents in 25 of the 31 European markets surveyed saw rents remain stable or increase, while they fell in countries affected by austerity measures. annabel.dixon@estatesgazette.com
Mapic 2012: Fifth Avenue in New York has lost its spot as the most expensive retail destination in the world for the first time in 11 years to Causeway Bay in Hong Kong.
According to Cushman & Wakefield’s report, Main Streets Across the World, of the 326 locations in 62 countries surveyed, a total of 147 saw rents increase. Just 49 (15%) experienced rental declines, compared with 19% in 2011.
Hong Kong’s Causeway Bay saw a large surge in demand and leasing activity which produced a 34.9% hike in rental values to $2,630 sq ft (£1,656 sq ft). Rents on Fifth Avenue in New York by comparison stand at $2,500 sq ft.
The biggest climber in the top ten was Avenue des Champs-Elysees in Paris at $1,129 sq ft, which jumped two places into third position, leaving Ginza in Tokyo in fourth place at $1,057 sq ft.
New Bond Street in London maintained its position as the sixth most expensive retail location worldwide, just below Pitt Street Mall in Sydney.
Global retail rents remained resilient, recording a 4.5% average increase.
The Americas showed the strongest rental growth of all regions. Prime rental rises in North American locations were driven by the strong performance of the US (16.3%) and Mexico (11.5%) while Canadian values recorded a marginal uplift.
South America showed the strongest rental uplift by region, with prime rents increasing by 11.6%.
Regional rental growth in Asia Pacific dipped to 8.6% compared with 12.2% in 2011 although occupier demand in the region remained robust. Asia Pacific also contained five of the 10 most expensive global locations.
The retail sectors across Europe, the Middle East and Africa remained polarised over the year. Prime rents in 25 of the 31 European markets surveyed saw rents remain stable or increase, while they fell in countries affected by austerity measures.
annabel.dixon@estatesgazette.com
