Retail Property Report - Main Streets Across The World 2011

Report Summary:

Prime rents rebounded strongly (4.8%) over the year to June, supported by a combination of growth among a raft of successful brands, aggressive retailer expansion in emerging markets and fierce competition for the best and most high-profile global shopping locations. In stark contrast to 2009/2010, among the 278 locations surveyed, the number showing rental growth (141) considerably exceeded sites seeing rental declines (45). The extent of correction was, however, highly varied and driven by a range of factors, linked to both structural changes and economic conditions.

The pace of rental growth in the Americas was yet again impressive, accelerating to 7.4% over the year to June, generally aided by better credit accessibility and more robust labour markets in South America. This uplift was, however, surpassed by Asia Pacific (12.2%), with increased international demand for space especially evident in China and India. Reduced availability in many Asian markets, where supply is at a premium and luxury retailer interest is strong, produced double-digit growth in several locations, and the region dominated this year’s top 10 ranking, with six of the most expensive main streets located in Asia Pacific.

Along with the stagnation in the Middle East and Africa, rental growth across Europe (1.9%) was considerably more restrained and lagged behind other regions. Nevertheless, it bounced back from the profound decline recorded in 2009/2010, with progress spurred by structural shifts rather than economic drivers, as retailers remained eager to build a presence in the most sought-after shopping locations. Th e emergence of a dual-track global occupier market did not, however, translate into significant movements in the ranking of the most expensive locations in each country. Fifth Avenue, New York retained its top position, followed closely again by Causeway Bay, Hong Kong and Ginza, Tokyo a distant third. The most notable movement was Pitt Street Mall in Sydney, which, on the back of redevelopments and a revitalisation, surged five places to become the fourth most expensive location in the world.

About the Author:

Cushman & Wakefield's international representation is designed to facilitate the rapid flow of information across borders and is supported by a comprehensive database of market information and regular liaison meetings.
This allows for the exchange of local market knowledge and expertise, and for the co-ordination of strategy for international investment and locational decision-making.

Our teams have been created specifically to cater for the demands of international clients and cover geographic regions, shopping centres, out of town, leisure and restaurants, and lease advisory. Enhanced by our dedicated cross-border retail teams, we offer the widest range of services from any retail advisory company with true accountability and a clear understanding of our clients’ needs.