Hong Kong's retail market is by far the most competitive in the world for multinational retailers, with prime rents in major cities such as New York, Paris, and London reaching record highs. sales qatar
During the fourth quarter, prime retail rents in Hong Kong hit $4,333 per square foot per year, topping CBRE's quarterly list of 97 prime retail markets around the world.
New York comes in second with $3,300 per square foot per year, followed by Paris ($1,452), London ($1,356), and Zurich ($961).
According to CBRE data, prime retail is strong and leading locations are becoming stronger, owing to increased demand from high-end retailers willing to pay record rents in an environment where construction costs are at historic lows.
In the survey, Raymond G. Torto, global chairman of CBRE Research, said, "There has been a lot of talk about the power of luxury retailers versus those that represent the mid-market." "Prime retail rents in New York, Paris, and London have risen 11, 28, and 18 percent year over year, respectively, from already sky-high levels."
Retail demand in Hong Kong is concentrated in prime locations rather than secondary streets. Russell Street in Causeway Bay, Canton Road in Tsim Sha Tsui, and Queen's Road Central in Central are the most prominent prime streets.
The Northeast area led the country in prime asking rent growth in the fourth quarter, with Newbury Street in Boston (6.7 percent q-o-q), Walnut Street in Philadelphia (5.8% q-o-q), and Fifth Avenue in New York (4.8 percent q-o-q) posting the highest rises.
According to CBRE, prime rents in Paris have risen by 80% since the first quarter of 2012, owing to strong demand and limited supply.
Australia was the only country with two cities in the top ten highest retail rents according to CBRE. With the first Australian stores of UNIQLO, H&M, and Forever 21, Melbourne, which ranked ninth in the world, was the most common landing spot for quick retailers in 2013.
Consumer interest in Japan has risen to its highest level since 2005 as the economy recovers. Tokyo came in seventh on the list and continues to be a primary entry point for retailers seeking to expand into Asia Pacific.
With designer brands 3.1 Phillip Lim and Cheap Monday opening their first China standalone stores, Beijing rounded out the top ten for CBRE's ranking.
"In the meantime, fast fashion brands are looking for opportunities in core submarkets, while food and beverage operators are becoming increasingly popular with shopping mall landlords, especially those in secondary locations, due to their ability to attract footfall," according to CBRE.