in News > Commercial Mortgage
print the content item


Attention, would-be retailers: If you're planning to open a store in Hong Kong or New York City, make sure that you have plenty of money to cover the rent.

According to new data from CBRE Group Inc., Hong Kong and New York City rank number one and two as the world’s most expensive prime retail markets during the third quarter. Hong Kong retailers paid approximately $4,334 per square foot per annum during the quarter, while New York's retailers paid an average of $2,925 per square foot per annum.

The retail mix in Hong Kong’s key retail precincts of Central, Causeway Bay and Tsim Sha Tsui continue to be dominated by the luxury segment, according to CBRE Group. But gains were witnessed particularly in New York City, where rents on Fifth Avenue increased 17% quarter-over-quarter.

"We are continuing to see strong demand and price velocity on the very best retail corridors in gateway cities, particularly in Manhattan, where every brand must be located in order to legitimately claim a 'global' identity," says Anthony Buono, executive managing director of CBRE's Americas Retail Services. "Fifth Avenue, Madison Avenue, Times Square and to an increasing extent, Soho and the Meatpacking districts are destinations for global shoppers. However, core rents are reaching new heights, and retailers are compelled to reach new heights to acquire space."

Rounding out the top 10 list of highest-priced markets for retail rents were Tokyo, Sydney, London, Melbourne, Zurich, Paris, Moscow and Brisbane.

"Cities with international reputations for luxury shopping are especially in demand," says Ray Torto, global chief economist at CBRE. "Given the limited supply of prime space throughout these locations, prime rents will remain high in the foreseeable future."




Latest Top Stories

Virginia Sues 13 Banks For $1.15B Over Faulty RMBS

Virginia is suing 13 banks, including Citigroup, Bank of America and Goldman Sachs, for $1.15 billion over claims the institutions misled the state's retirement system about the sale of faulty RMBS.


Freddie Mac: Great Year So Far For Apartment Construction

Construction of condominium complexes is "scant," at least in comparison to 2006, and single-family construction is just "chugging along," Freddie Mac reports.


'Access To Affordable Mortgages Act' Introduced In The House

Rep. Blaine Luetkemeyer, R-Mo., recently introduced the Access to Affordable Mortgages Act, which aims to exempt certain higher-risk loans from property appraisal requirements under the Truth in Lending Act.


Black Knight: HELOC Reset Storm Approaching

A report from Black Knight Financial Services shows that at least 2.5 million HELOCs will face resets over the next several years, resulting in an average increase of $250 per borrower monthly payment.


CFPB Selects Vendors And Lenders For Its Mortgage E-Closing Pilot

Five technology firms and seven lenders will participate in the CFPB's e-closing pilot, which will explore the viability of developing a standard process for closing mortgages using technology.

Urban Lending_id1351
Hse SandyHook
Industry Resource
Play for Pink
SWBC_id1313
Safeguard_id1322
FedHomeLoan_id1341