According to the latest research conducted by
Colliers International, the leading real estate company, premier street front
rents in almost every region in the world moved lower for a second consecutive
year. Rent decrease comes as a direct consequence of decreased demand for some
of the most attractive world locations during the global economic crisis. Despite
an improved global economic landscape, retailers were still expressing caution
in terms of expanding and committing to new stores.
However, some
facts point out that the worst of the downturn is over and that high-end retailers will be back pressing for
more high profile stores in the world. The ROB Claymore/Robb Report
Global Luxury Index ETF (www.claymore.com)
shows a significant bounce back in
2009 recording big spendings by high-end consumers after nearly a two year
hiatus. With many of the world’s rich feeling more secure and comfortable with
luxury purchases, demand for high-end retail premises is expected to increase
over the coming period.
With regard to the rents for the most attractive
retail units in 2009, premier streets in Southeast Europe marked a significant rent
decrease- averaging from 20-50% in comparison to previous year. While in
Belgrade retail rents now amount around 100eur/m2, rents in other countries are
lower, totaling: 75eur/m2 in Sofia, 70 eur/m2 in Zagreb and 90eur/m2 in Bucharest.
Rental levels are still the highest in Athens amounting to 200 eur/m2. As for
the other cities in Europe, Paris’ Avenue saw a low rents
rise to 835 eur/m2, while London’s Bond Street was up sharply to 780 eur/m2.
In the U.S., New York’s Fifth
Avenue saw rents decrease by 100 eur/m2 to register 830 eur/, while Madison
Avenue fell about the same amount to 390 eur/m2. Chicago’s North Michigan
Avenue saw rents slump 150 eur/m2, while San Francisco’s Union Square district
saw rents hold steady at 265 eur/m2. Los Angeles’ Rodeo Drive, however,
registered a small increase, rising to 280 eur/m2.
In Asia Pacific, Ginza-Chuo
Avenue in Tokyo saw rents fall modestly to 362.5 eur/m2, while Hong Kong’s Causeway Bay district saw rents increase
to 800 eur/m2.
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