LA is only the 23rd strongest global retail city: report
Despite the pull of Rodeo Drive and other shopping sweet spots, Los Angeles is only the 23rd strongest retail city in the world, according to a new report by CBRE, which looks at different markets’ ability to attract the 334 leading international retailers.
The City of Angels slipped two notches from its 2015 ranking in the newly released report—“How Global is the Business of Retail?”— which monitored the presence of the 334 international companies in 61 countries. Of the retailers surveyed, 37.5 percent were present in L.A., the same percentage as last year.
London, the United Arab Emirates and Shanghai took the top three spots, with the highest presence of top retailers.
Washington D.C. tied with LA for the 23rd spot, inching upward from 24 in 2015. New York came in at No. 4 with 46.6 percent, unchanged from its ranking and percentage of the previous year. Washington D.C. and New York joined LA as the only three U.S. cities listed in the top 25. Las Vegas and Miami tied for 27.
The CBRE study identified the fastest-growing global segment as Food & Beverage retail, which amounted to 20 percent of new retailers overall. The findings correlate with an earlier CBRE Research study, which found a third of consumers would visit a shopping center only to dine or drink. “F&B can be used as a pull factor to draw consumers into shopping destinations or to increase well time,” the study concluded.
Specialty food stores are positioned to do especially well, with non-anchor stores bringing in an average of $61 to $71 per square foot in L.A., according to data provided by SVN Pacific Bridge, an LA-based commercial real estate team.
Luxury & Business Fashion is the second-fastest expanding market in the world, CBRE found. Sports, luxury and mid-range retailers lead the way. Mid-range retailers, for example, produce an estimated $33 or more per square foot in L.A., SVN reported.