New York’s Fifth Avenue remains the world’s most expensive retail destination as retailers continue to focus on major fashion capitals, according to a CB Richard Ellis Global Retail Market View report released today.
Rental values for the strip, extending from 49th to 59th streets, reached $1,900 per square foot, marking an increase of more than 10 percent in the last 12 months.
There was little change in the ratings from the previous quarter with the exception of Hong Kong, which moved up to second place, the fastest growing market in the first quarter of 2011 following a rental hike of 46 percent quarter-over-quarter. Rents in Hong Kong reached $1,697 per square foot per year, and in Sydney, the third highest ranking city, they were $1,301 per square foot.
The second U.S. city to make in into the rating was Los Angeles, at $520 per square foot per year.
“It remains a testing time for retailers,” said Ray Torto, global chief economist at CBRE, “particularly in developed markets, where fewer new shopping venues are making it more difficult for retailers to access the prime space they require. Not only is this putting upward pressure on rents in the most sought-after locations, it is also forcing retailers to extend their search criteria and consider taking non-prime locations.” TRD