NY retail real estate still priciest worldwide

Even with a 25 percent decline in rents over the last year, New York City still has the priciest retail market in the world, according to a third-quarter worldwide retail market report from CB Richard Ellis (see the full report below). So-called “prime” New York retail rents are $1,640 per square foot, according to the report released today, with Hong Kong and Paris coming in as the second and third most expensive locations, trailing New York with prime rents at $976 per square foot and $857 per square foot, respectively. Anthony Buono, the executive managing director of CBRE retail services in the Americas, said that the report showed stabilization in the higher-end retail markets, with traditionally pricey markets, like New York City, holding on to their top dog positions, despite the financial downturn. “Prime rents in premier locations are showing signs of stability as the best locations in the best markets continue to attract a variety of retailers,” Buono said. “There is increasing differentiation between the ‘best and the rest.’” Nationwide, the CBRE report said that while retail real estate inventory climbed slightly between the second and third quarters of this year, the industry is stronger than the office and industrial sectors, and that low interest rates and government spending have helped aid the retail market recovery. TRD
CBRE 3Q 2009 Global Retail Market View