New York ranked world's most expensive retail market, New Delhi 69th
03 August 2009
Prime retail rents have fallen in almost every region across the world as the global recession impacts consumer sentiment and retail sales, according to new retail research from CB Richard Ellis (CBRE), Global Retail MarketView.
Demand for retail space has declined in most markets across the world as consumers cut back on spending and unemployment continues to rise in many countries. New Delhi in India saw a 25 per cent decline in a six month period.
Emerging and less established markets have been most significantly affected. Buenos Aires saw the largest annual decline in retail rents year-on-year with a drop of 37 per cent, followed by Warsaw with a 33-per cent decline and Washington DC with a 26-per cent decline.
Whilst some markets have continued to experience year-on-year increases in retail rents, in many cases the current pressure is downward.
Prime retail rent represents a typical open-market headline rent that an international retail chain can expect to pay for a ground floor retail unit (either high street or shopping centre depending on the market) of the highest quality space in the best location in a given market.
Despite a 10-per cent year-on-year rental decline, New York remains the world's most expensive retail destination, with rental values totalling $1,800 sq ft per annum. New York's retail rents stand at nearly double those of Hong Kong, which still ranks in second place globally with rents of $975 sq ft per annum.