Asia-Pacific nations led a global recovery in prime retail rents as tenants sought to expand in the region, while New York’s Fifth Avenue kept its spot as the world’s most expensive shopping strip.
Rents across the Asia-Pacific region climbed 12.2 percent, the Americas rose 7.4 percent and those in Europe increased 1.9 percent, according to a survey of 63 nations by real estate services company Cushman & Wakefield. Rents across the globe advanced almost 5 percent in the year to June after a decline of about 1.5 percent a year earlier, according to the report.
“Retailers continue to expand in the Middle East and Japan, but China, India and to some extent South America remain the focus of attention for many of the world’s leading retailers,” said John Strachan, global head of retail at Cushman.
An influx of visitors from mainland China is helping support Hong Kong’s economy by boosting spending and demand, and U.S. consumers, while cautious, are stepping up spending as the economy recovers. A weak U.S. dollar also bolstered tourism and luxury sales, contributing to rental growth of 11 percent, Cushman said.
Beijing’s Wangfujing had the biggest increase among the 278 shopping areas surveyed, soaring almost 110 percent. Sydney’s Pitt Street Mall, the fourth-most expensive shopping street in the world, was the biggest gainer among the top 10, jumping 33.3 percent from the previous year.
Rents along New York’s Fifth Avenue climbed 21.6 percent during the year, keeping the top spot for the 10th year, while Hong Kong’s Causeway Bay was the second-most expensive street, followed by Tokyo’s Ginza.