The news comes on the heels of Cushman & Wakefield's findings last week, although the numbers differ slightly. CBRE puts Fifth Avenue retail rents at $1,508 per sf, with C&W lowering that amount a few dollars to $1,500.
According to CBRE research, Fifth Avenue's price tag has not turned retailers away from looking for space along the 10-block corridor between Rockefeller Center and Central Park. It cites 40,000-sf leases by Armani and Gucci as proof.
While Fifth Avenue is undeniably number one, that is where the similarities end. CBRE lists Moscow as the second most expensive retail destination, with rents valued at $1,059. According to the report, the Russian city saw prime retail rents climb by more than 25% in the past 18 months. The increase makes it the most expensive city in Europe. "Demand for prime space in Moscow has been rising rapidly as retailers look to take advantage of rising consumer spending , particularly on luxury goods," according to a CBRE statement. C&W ranked Moscow at 18th, putting Hong Kong's Causeway Bay second with rents valued at $1,213 per sf.
In addition to Fifth Avenue, two other US markets ranked within the top 50 global markets, according to CBRE research. Los Angeles took the number 15 spot with retail rents at $392 per sf, and Chicago took the number 27 spot with rents at $327 per sf. C&W did not list any other cities beside New York City in among its top 44 retail markets.
"Retail rents, especially on high streets, have been rising across the globe," Anthony Buono, CBRE's executive managing director of retail services, says in a statement. "Despite the increases, US markets can look like relative bargains compared with their overseas peers, especially in Europe."
Europe had seven cities listed in the CBRE's top 10 markets, and 16 of the top 20. Notably, London notched retail rents at $891 per sf to make it number three; Paris was number four with rents at $827 per sf; and Dublin was seventh with rents at $620 per sf.
Of the Asian markets, CBRE puts Tokyo at number five with $811 per sf, Hong Kong sixth with $703 per sf and China's Guangzhou 22nd with $342 per sf.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
