This article in The Nation’s 6/27/11 issue reports on a survey by Colliers International showing that as of March 2011, the rents for prime luxury retail locations has risen across the entire world.
As regular readers of my GLG News articles have been reading for the past two years, I have been preaching that the top malls (the “A” or “A+” category) and the most successful retail corridors will hold their value. All the gnashing of teeth and public wailing about the demise of the brick and stick retailing by the lame stream media makes for good copy but misses the mark in telling about what is really happening in the retail industry.
This most recent study by Colliers International merely confirms and expands upon what I have been telling the GLG reader in a variety of ways. A few of the more interesting tidbits to come out of this survey is that New York’s Fifth Ave. tops the global list of shopping districts that have recovered the fastest and now commands rents of $2,150 per.sq.ft. which is up 72%. The previous leader, Paris’ Avenue des Champs Elysees, rents have remain unchanged from last year and consequently has fallen to 8th place in the global rankings.
Hong Kong’s Russell Street, Causeway Bay also stands out in the survey having increased by over 25% to reach $1,510 per.sq.ft. per year. In fact the only two prime shopping streets that reported substantial declines from 2010 were in Dublin and Athens which should not come as a surprise to anyone.
If anyone is interested in exploring the myriad of reasons for this uptick in values of prime, high end real estate around the world, give me a call.
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