Bangkok--26 Nov--CB Richard Ellis
According to CB Richard Ellis’ (CBRE) Q3 2008 Global Retail Rents Survey,[1] some smaller and secondary retail cities such as Sydney, Australia and Dublin, Ireland, now sit alongside established global fashion capitals such as Hong Kong, London and Los Angeles in terms of claiming the highest retail rents in the world.
Bangkok was ranked 74th out of the 88 cities surveyed, and retail rents in the Thai capital have been flat for several quarters, due to both domestic and external factors. While retail rents in Bangkok vary widely based on location and format, they are a small fraction of the levels seen in many other markets.
Asia Pacific’s presence in the top rankings continues to be prominent, holding seven of the top 20 most expensive destinations. Guangzhou remains to be the most expensive mainland Chinese city, having jumped significantly in the ranking from 22nd in Q1 2008 to 13th in the current ranking.
New York’s 5th Avenue remains the world’s most expensive retail destination, with monthly rental values of THB 69,760 per square metre, more than 75% higher than Hong Kong, the second most expensive location. Also making the top five most expensive retail destinations globally are Moscow, London and Tokyo.
The top five fastest growing markets are Tel Aviv, Oporto, Abu Dhabi, Valencia and Bucharest, and prices in Tel Aviv and Oporto grew over 30% between Q1 2008 and Q3 2008.
More recently, the slowdown in consumer demand has inevitably struck some retail markets around the world, resulting in falling rents. In cities such as Tokyo and Madrid, retailers are now renegotiating with landlords.
Europe and the Middle East continue to dominate the most expensive retail hot spots, containing 33 of the top 50 most expensive destinations and 15 of the top 25 fastest-growing retail destinations. In the Americas, North American cities continue to be the most expensive, as Los Angeles is ranked at the tenth position behind New York’s number one spot, with San Francisco, Toronto and Vancouver being the other cities to make the top 50.
[1] CBRE’s research ranks 88 global retail markets across EMEA (Europe, Middle East and Africa), Asia Pacific and the Americas in terms of rental values for stores in prime retail destinations, identifying the most expensive and fastest growing markets.
For further information:
Mr. James Pitchon
Executive Director
662 654 1111
Ms. Ngamjai Jearrajarat
Corporate Communications Manager
662 654 1111 Ext. 522