Retailers on New York City’s Fifth Avenue have the highest retail rents in the world, according to a new report from Colliers International. Rents on the avenue increased 11 per cent from the previous year.
The 2013 Global Retail Highlights Report shows that rents are growing in coveted areas as the retail market continues to rebound. The report indicates sales around the world are increasing and there is a rising demand for retail presence in key tourist destinations.
New York, London and Hong Kong are home to the most expensive retail rents. The top five rents per square foot are:
- Fifth Avenue, New York: $3,052
- Queen’s Road Central, Hong Kong: $2,087
- Canton Road, Tsim Sha Tsui, Hong Kong: $1,994
- Madison Avenue, New York: $1,325
- Old Bond Street, London: $1,223
“We’re seeing luxury brands build a strong presence in sought-after shopping districts like Pitt Street Mall in Sydney and Regent Street in London, while international brands are opening new flagship stores in high-traffic locations,” says Solomon Ets-Hokin, chair of retail services at Colliers International. “Many well-recognized brands, such as Apple, Zara, Topshop and Victoria’s Secret are taking advantage of increased consumer spending, especially among tourists.”
Tourist spending maintained retail sales volume in China, with more than 12 million visitors flocking to Hong Kong in the second quarter of 2013. This was an 11.8 per cent increase from the same time period in 2012. International retailers are looking to open flagship stores in prominent locations in Hong Kong. The demand for locations on first-tier streets is spilling onto second-tier streets in neighbouring areas.
