Newspaper article Fraser Coast Chronicle (Hervey Bay, Australia)

Aussie Cities Top the List; Sydney Jumps to Second Place, with New York Still at Number One in Terms of Retail Rent Prices

Newspaper article Fraser Coast Chronicle (Hervey Bay, Australia)

Aussie Cities Top the List; Sydney Jumps to Second Place, with New York Still at Number One in Terms of Retail Rent Prices

Article excerpt

THREE Australian cities are among the ranks of the Top 10 most expensive retail markets in the world according to CB Richard Ellis's (CBRE) latest Global Retail Market View.

Sydney has moved into second place globally (from third in Q2 2010) with the opening of Westfield Sydney on Pitt Street Mall.

Brisbane has remained in ninth place while Melbourne has jumped up the rankings from 12th to tenth position, underpinned by strong tenant demand from local and global retailers such as Zara, Gap, Esprit, Tag Heuer and Nespresso.

The CBRE report shows that prime retail rents in the world's leading retail destinations have stabilised across the globe, with some markets now witnessing rental growth as the economic recovery gathers momentum and consumer confidence starts to improve.

Demand for prime retail space in most markets remains strong, with some cities seeing substantial annual growth at the end of the third quarter (Q3) of 2010.

Prime retail rents globally increased by 0.2% from the second quarter to the third quarter of 2010.

Rents on a year-on-year basis grew in three of the major global regions, with the Americas seeing the highest rental increase (6% year-on-year), Asia following with a 4% increase and the Pacific region growing by 3% year-on-year.

However, rents remained largely stable in most EMEA markets in Q3 and some cities have seen significant annual rental growth,with Edinburgh and London growing by 25% and 20% respectively compared to the same period in 2009.

New York City continues to dominate as the world's most expensive retail market, with prime rents at US $1,800 per sq ft per annum.

Sydney was in second position at US$1,218/sqft/annum) and Hong Kong ranked third (US$1,113/sq ft/annum).

Commenting on retail trends in the Pacific region, Josh Loudoun, Regional Director Retail Services, said: "International and national retailers are relocating in response to new and refurbished space being introduced in the CBD markets of Sydney, Melbourne and Brisbane. …

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