Retail rents continue to rise globally
Despite battling the rapid expansion of e-commerce and near-stagnant economic growth in many regions, retail rents rose by an average of 2.4 percent worldwide in the 12 months to September 2014, and rose or remained flat in 83.9 percent of the 330 global markets surveyed for Main Streets Across the World,a report by Cushman & Wakefield.
New York City’s Upper Fifth Avenue is now the world’s costliest place to rent retail space, with rents reaching a record US$37,675 per square metre per year, pushing the strip past Hong Kong’s Causeway Bay, which slipped into the second spot on the back of a 6.8 percent drop in rents.
Upper Fifth Avenue’s rise reflected the success of the rest of the Americas, where retail rents increased by 5.8 percent on the year, the same figure as the year before and well above all other regions. Furthermore, that number increases to 7.5 percent when just looking at North America, 10.6 percent when just looking at the United Sta