Prime retail rents have fallen in almost every region across the world, according to new research from CB Richard Ellis.
By Rebecca Waters
Demand for retail space has declined in most markets across the world as consumers cut back on spending and unemployment continues to rise in many countries, the Los Angeles-based commercial broker said in its Global Retail MarketView Tuesday.
Emerging and less established markets have been most significantly affected. Buenos Aires saw the largest annual decline in retail rents year-on-year with a drop of 37 percent, followed by Warsaw with a 33 percent decline and Washington DC with a 26 percent decline.
Most expensive market
New York City was the most expensive retail market, despite a 10 percent fall in asking rents on Manhattan’s Fifth Avenue, the Los Angeles-based commercial broker said in a report Tuesday.
Rents in Hong Kong’s most desirable shopping area ranked second at $975 a square foot and Moscow was third at $790. Paris and Tokyo followed at $776 and $771, respectively.
Reduced demand
Commenting on the findings, Nick Axford, head of research in Europe for CB Richard Ellis, said: “Most retail property markets are experiencing reduced demand from retailers and an increase in the number of vacant units, which is in turn affecting rents.
“Some retailers are using this as an opportunity to take advantage of the weakening market conditions to negotiate more favorable lease terms.”
London ranked sixth in the survey at $677 a square foot per year, followed by Sydney at $624 and Zurich at $612. Los Angeles was ninth at $600 and San Francisco was 10th at $540.