Tourists and Brands Flock to High Streets

Global | Retail | 2013
HIGHLIGHTS
Tourists and
Brands Flock to
High Streets
> Slower economic growth in China did not make a lasting dent on
tourist spending in Hong Kong. Retail sales have rebounded from
the lows of Q3 2012. The latest figures from the Hong Kong Tourism
Board show that Hong Kong received a total of 12.5 million inbound
visitors during the three-month period ending May 2013, an 11.8%
year-over-year increase. Nine million of those visitors were from
Mainland China.
> Combined with the arrival of international brands such as Apple,
Top Ten Global Retail Rents USD/SqFt/Year
$3,052
New York, NY, Fifth Avenue
$2,087
Hong Kong, Queen’s Road Central
$1,994
Hong Kong, Canton Rd, Tsim Sha Tsui
Zara, and Topshop, in addition to luxury brands expanding their
presence, the Australian CBD is once again a popular shopping
destination. Pitt Street Mall in Sydney was ranked the 8th most
expensive in Colliers’ High Street survey.
$1,325
New York, NY, Madison Avenue
$1,223
London, Old Bond Street
> Demand for flagship space in London continues to exceed supply,
$1,114
driven largely from international retailers seeking a share of the
spoils. This is leading to some notable rental growth in the West End’s
core locations, with Regent Street witnessing double digit annual
rental growth.
> São Paulo and Rio de Janeiro remain leaders in shopping quality
and diversity, achieving the most expensive rents and the focus of
growth for luxury brands. Brazil’s High Street rents are the most
costly in Latin America. São Paulo’s luxury shopping street Rua
Oscar Freire saw a 15% growth in asking rents over the previous
year. Rua Garcia D´Avila in Rio de Janeiro saw rents grow by 6.7%.
>
Most U.S. high street rents grew over last year. In New York, Fifth
Avenue rents grew by 11 percent. At $3,052 per square foot, Fifth
Avenue rents are the most expensive in the world. On Las Vegas
Boulevard, asking rents grew by 25 percent. Philadelphia’s Walnut
Street showed the biggest gains in the U.S., with 33.8 percent growth.
Hong Kong, Causeway Bay
$930
Zurich, Bahnhofstrasse
$871
Sydney, Pitt Street Mall
$836
Milan, Via Monte Napoleone
$834
Paris, Champs Élysées
All Rents in USD
* Exchange Rate as of March 31, 2013
Mainland Tourists Still Shopping Strong
in Hong Kong
Retail sales in Hong Kong have rebounded from the lows of Q3 2012.
Slower economic growth in China did not make a lasting dent on
tourist spending. The latest figures from the Hong Kong Tourism Board
show that Hong Kong received a total of 12.5 million inbound visitors
during the three-month period ending May 2013, an 11.8% year-overyear increase. Nine million of those visitors were from Mainland China.
International retailers continued plans to expand their presence in
the city, albeit in a more cautious way. Brands regard Hong Kong as
a perfect place to build awareness and recognition in the minds of
mainland Chinese visitors. Many companies, especially those in the
fashion, watch and jewelry sectors have opened flagship stores in
prominent locations throughout the city. However, some retailers
are now considering bypassing Hong Kong and instead entering the
Chinese market directly. Retailers have seen profitability narrow in
recent years due to high operation costs which include soaring rents
and increasing labor costs. The minimum wage increased from $28
to $30 HKD in May. In response to rising costs, some retailers have
marked up prices or begun selling more expensive products.
Strong demand for first-tier streets in core shopping areas continued
to spill over onto the neighboring second-tier streets, as local retailers
were forced to move out of core locations during the last rental rally.
According to our research, retail rental rates in the traditional top four
shopping locations rose by an average of 1.0% quarter-over-quarter in
Q2 2013, following growth of 1.1% quarter-over-quarter in Q1. Rents
grew more strongly in second-tier streets than they did in first-tier ones.
Overall, retail rents of street-level shops in key shopping districts are
forecast to grow by 8% over the next 12 months. The lack of growth in
prime retail space is apparent with much of the recent growth derived
from growing demand in secondary street locations.
2
Global Retail Highlights | 2013 | Colliers International
Largest Global Flagships Find a Home
in Shanghai
Retail sales in Shanghai grew by 9.1% year-over-year during H1.
While this would be an impressive figure for most of the world’s
cities, for Shanghai this was a bit of a slowdown. It caused many
developers to be more cautious, pushing back completion dates
of some projects. In total, two new shopping centers had grand
openings in Q2, including K11 Art Mall and the retail component
of L’Avenue, an office tower with three floors of luxury retail
featuring brands such as Ralph Lauren and Louis Vuitton.
Shanghai continued to see many retailer expansion and leasing
activities during H1. Uniqlo leased space one block east of
International APM for its largest global flagship. Many other highend brands have continued expansion into Shanghai. Shanghai
Tang Cathay Mansion’s grand opening at Cathay Theatre was, at
11,840 square feet, the brand’s largest global flagship. Breguet
and Ernest Borel have each opened their largest global flagships
in the city. Several brands have also announced plans to expand
in Shanghai, including Burberry’s planned opening of its largest
Asia flagship store, Stella McCartney’s second Shanghai store and
two Mulberry locations.
The vacancy rate for mid- and high-end shopping centers dropped
0.3 percentage points to 8.5% in Q2 2013 while the average ground
floor fixed rent edged up by 1.07% quarter-over-quarter.
Beijing Retail Spending Growth Slows,
But Still Remains Strong
Beijing’s retail sales increased by 8.8% year-over-year in the first
half of 2013. While this figure still indicates strong growth, the
number was 4.2 percentage points below the same period last year.
Similarly, retail net absorption decelerated to 178,745 square feet
as of the end of Q2 2013, the lowest figure since Q2 2007.
Two new projects, Parkview Green and Sino-Ocean We-Life
Plaza, totaling over 1.2 million square feet debuted in Q1
2013. Sino-Ocean We-Life Plaza, developed and operated
independently by Sino-Ocean Land, is the company’s first
shopping center in Beijing. However, no new retail supply was
added in Q2 2013. While some brands have slowed or even
suspended expansion plans, many remained active players,
including Calvin Klein, Trussardi, GANT, Brooks Brothers
and others who signed new leases across the city. Paul Smith
Select Asia Pacific Rents: USD/SF/Year
$149
10%
2%
Khan Market
DELHI
$160
$131
4%
$369
0%
8%
$537
-12%
5%
$109
$250
Myeong-dong
SEOUL
West Nanjing Road
SHANGHAI
$2,087
$1,994
Queen’s Rd
Central
HONG KONG
Canton Rd,
Tsim Sha Tsui
HONG KONG
14%
Connaught Place
DELHI
Ly Thai To St.
Hoan Kiem District
HA NOI
$88
10%
Wangfujing
BEIJING
CBD
BEIJING
$265
$329
0%
Hai Ba Trung St.
Hoan Kiem District
HA NOI
9%
$1,114
9%
Ginza - Chuo St
TOKYO
Causeway Bay
HONG KONG
$184
-2%
Tianhe District
GUANGZHOU
0%
Brigade Road
BANGALORE
$355
-3%
Orchard Road
SINGAPORE
$35
Ayala Center
MAKATI
11%
RENT/SF/YR > $500
RENT/SF/YR $150 - $500
RENT/SF/YR < $150
% Year Over Year
Rent Increase
$74
n/a
Prince Mohammed Bin Abdul Aziz Street
JEDDA
Note: Displayed change in rent is in terms of USD/SF/Year. For annual change in local currency, please see detail on pages 14-18.
3
Global Retail Highlights | 2013 | Colliers International
% Rent Unchanged
Year Over Year
% Year Over Year
Rent Decrease
continued its mainland China expansion by opening 8,611
square feet in Beijing’s Taikoo Li Sanlitun North zone.
The average ground floor fixed rent in Beijing’s mid- and highend shopping centers increased by 0.9% quarter-over-quarter in
Q2. Reflecting an overall stability in the retail market, the overall
vacancy rate for Beijing’s mid- to high-end shopping center
market decreased slightly to 7% at the end of Q2 2013.
In Japan, another Quarter of GDP
Growth
The Japanese economy has shown three quarters of GDP growth
since Q4 2012. Exports, fixed business investment, and corporate
profit have all shown positive signs. Private consumption—
especially in the luxury sectors—supported by improving
consumer sentiment, has also proved resilient.
Since the end of the 2008 recession, rental rates in high-end
street retail began to see slight increases in select buildings
and districts. The fast fashion trend, which took off after 2008,
saw retailers like Zara, H&M, Forever 21, and Uniqlo opening
in Ginza and Omotesando. European luxury brands and other
clothing retailers continue to drive demand in these areas. In the
latest Colliers survey, rents on Chuo-dori in Tokyo’s famed Ginza
district remained unchanged.
4
Global Retail Highlights | 2013 | Colliers International
Singapore’s Orchard Road Continues
to Capture Top Retail Rents
While Orchard Road remains the premier retail location in
Singapore, the increased competition from suburban malls
and other retail locations has taken some of the gloss off retail
rents in the premier shopping belt. Some of the older malls in
Orchard Road that have not undergone upgrading or any form
of refurbishment have also dragged the overall average monthly
gross rents of prime retail space down. The prime ground floor
gross rental rates for retail space in Orchard Road have slipped by
4 percent in Q1 2013 over the same quarter in the previous year.
Nonetheless, the rents in Orchard Road remained 10.1% higher
than the average rate for prime ground floor retail spaces in
regional centers. Within the past year, Mulberry, Paul Smith and
Crate & Barrel opened new stores on Singapore’s Orchard Road.
At the same time, fast fashion chain Uniqlo continued to expand
in the premier shopping belt.
Even though competition for the consumer dollar is intense,
many shopping centers along Orchard Road and in the regional
centers are expected to still maintain tight occupancy rates as
new-to-Singapore brands continue to make inroads into the
city-state to capitalize on its fast-growing international profile.
We expect retail rents to remain stable with the continued
momentum of new openings and setups in many of the popular
and well located malls. In Orchard Road, new malls would largely
be able to maintain their rental levels, but older malls that have to
intensely compete alongside for the tourist and local dollar, could
have their rents come under pressure.
Relaxed Foreign Investment
Regulations Set Stage for New Brands
in India
An overall slowdown in the Indian economy in the first half of
the year, high inflation rates and a depreciation of the national
currency was especially hard on low- and middle-end malls in
India.
Organized retail, which includes all standardized brands and
chains, accounts for less than 10% of the total retail market in
India. However that percentage is likely to increase to around
15% in the next five years. The recently relaxed government
regulations will allow 100% foreign ownership of single brand
international retailers and up to 51% for multi-brand retailers.
There is hope that this will attract big global players such as
Walmart, Tesco, Carrefour, Ikea and Apple to one of the world’s
largest retail markets.
success of these developments has seen increased pedestrian
activity through the core CBD retail districts. Combined
with the arrival of international brands such as Apple, Zara,
and Topshop, in addition to luxury brands expanding their
presence in Australia, the CBD is once again a popular shopping
destination. The CBD continues to be the first location of choice
for major international retailers coming to Australia. Generally,
new entrants seek a flagship location in either the Sydney or
Melbourne CBD, followed by smaller stores in top performing
regional shopping centers. They typically require large floor
plates substantially larger than those of local retailers. Demand
is high, as premier corridors lack sufficient freestanding space
to accommodate the larger footprints and quality streetscapes
sought by many brands. We expect the supply of CBD retail space
to remain constrained over the medium term. Rents along prime
CBD mall locations in Australia consistently rank amongst the
most expensive in the world. Pitt Street Mall in the Sydney CBD
was ranked the 8th most expensive in Collier’s High Street survey.
New-to-market retailers must now consider options outside of
the CBDs, where they would traditionally choose to locate stores.
Swedish retailer H&M recently announced it will open its first
Australian store in Melbourne’s GPO building. The new store will
become H&M’s Australian flagship and one of its biggest in the
world, occupying three floors and about 53,000 square feet.
The largest CBD retail project under construction is The
Emporium in Melbourne. At 497,024 square feet the development
will add approximately 200 new retail outlets to the market. In
addition to local designers, a number of international brands
have committed to the center including Topshop and what will
be the first UNIQLO store in Australia. The fast fashion brand has
committed to open a 32,291 square-foot four-level flagship.
Prada and Dior Flagships to Open in
Auckland
In H1 2013, brands like Van Heusen, Louis Philippe and Flying
Machine expanded into Khan Market and Connaught Place. In
addition, Starbucks opened its first store in the National Capital
Region. High Street rents have seen an overall gradual increase. Delhi’s
Connaught Place and Khan Market saw rents grow in a range
of 6 to 10%. High street rentals are expected to remain stable in
the coming quarters. However, rental rates in malls may grow as
more international retailers move into the country.
A Reinvigorated Australian CBD
The continuing refurbishment and expansion of Australia’s major
city center retail destinations, coupled with the introduction of
new international brands, has reinvigorated CBD retailing. The
5
Global Retail Highlights | 2013 | Colliers International
In New Zealand, more positive national data releases on
employment, wage growth and home values point to a growing
national retail sector over the next 12 months. However, there
remains a disconnect between the national results and spending
at the till for some geographies and sectors with many retailers
still reporting challenging trading.
In Auckland, only CBD and Takapuna precincts have a vacancy
rate below the long-term average. In Wellington, the vacancy
rate has edged up across all precincts. Retailers in prime
locations offering necessities, niche and innovative products are
outperforming, enabling a select group of retailers to prevail in
the lower margin retail environment. While our latest vacancy
rate surveys record growing demand in Auckland, supported by
a positive economic story, Wellington’s growth is more sporadic.
This is flowing through to the rental growth outlook whereby we
project flat growth in Wellington and 3% annualized increase in
Auckland, which is just above the long-term inflation average.
Newly opened retail stores in Wellington include domestic
retailers like Hartleys and Vincent, Walker & Hall and
international brands such as Lululemon Athletica, Nespresso,
and The Body Shop. Both Prada and Christian Dior have
announced flagship stores in Lower Queen Street in Auckland.
UK Shoppers Shift Online, Slackening
Demand Everywhere except London
The consumer shift towards online shopping against a back
drop of high business rates and stiffening competition on the
high street has led to a further spate of UK retail administrations
throughout 2013. Maintaining or gaining a presence in key
retail destinations is now more important than ever, alongside
disposing of stores in weaker, typically small and medium
sized towns. This is particularly prevalent in the growing divide
between London and the rest of UK, where Hackett’s letting at
£645 per sq ft set a new rental high for Regent Street. Meanwhile,
a number of UK towns now approach 30% vacancy rates.
Demand for flagship space in London continues to exceed
supply, driven largely from international retailers seeking a share
of the spoils. This is leading to some notable rental growth in the
West End’s core locations, with Regent Street witnessing double
digit annual rental growth. As demand and supply imbalance
continues in the West End’s core locations, a rental growth
overspill has impacted other nearby locations, such as South
Moulton Street and Dover Street, both streets witnessing y o y
rental growth of 20% and 5% respectively.
6
Global Retail Highlights | 2013 | Colliers International
Outside of London, the new Trinity Leeds has been a landmark
opening in a time of limited shopping center development
activity. Leeds is now behind only London’s West End,
Birmingham and Glasgow as the 4th strongest retail destination
in the UK. The one-million-square-foot scheme has delivered
120 modern, flexible retail units and attracted international
retailers such as Apple, Hollister and Victoria’s Secret. Its
initial performance has been strong, with footfall exceeding
expectations. Growing consumer confidence and signs of
green shoots in the UK economy may spark life into retail
developments outside of London that meet the new demand of
today’s consumer.
Paris is For Tourists
France has suffered from subdued household spending and
rising unemployment, yet the Parisian retail market is performing
well, thanks largely to international tourists. Chinese tourists
are especially fond of Paris. Chinese citizens, according to
UNWTO data, spend more on foreign travel than those of any
other country. A significant part of their holiday budget goes to
shopping, mainly on luxury goods which are cheaper than in
China and can be trusted not to be counterfeit.
Paris remains one of the favorite markets for international
retailers and luxury brands. Champs-Élysées, the city’s most
sought-after location, has seen strong rental growth. The street
hardly ever sees available units, while mid-market and luxury
retailers aiming to acquire flagship stores help to push up rents.
Select Europe Rents: USD/SF/Year
Chart Title – One Line
or TwoRENT/SF/YR > $500
RENT/SF/YR $150 - $500
RENT/SF/YR < $150
% Year Over Year
Rent Increase
$286
25%
Karl Johans Gate
OSLO
% Rent Unchanged
Year Over Year
% Year Over Year
Rent Decrease
$255
$184
-5%
-5%
Buchanan Street
GLASGOW
$577
-4%
Grafton Street
DUBLIN
George Street
EDINBURGH
-5%
High Street /
New Street
BIRMINGHAM
Briggate Street
LEEDS
$173
-9%
Broadmead
BRISTOL
$1,223
-4%
Spitaler Straße
HAMBURG
$155
-3%
-4%
Spuistraat
THE HAGUE
$117
$400
Kalverstraat
AMSTERDAM
-3%
$214
-5%
0%
$193
$255
Market Street
MANCHESTER
$297
Oude Gracht
UTRECHT
Meir
ANTWERP
$834
-4%
Champs-Élysées
PARIS
Demer
EINDHOVEN
-4%
3%
Old Bond St
LONDON
-4%
$343
$214
14%
$161
$457
Königsallee
DUSSELDORF
6%
$202
Zeil
FRANKFURT
-6%
Lijnbaan
ROTTERDAM
$930
$636
-16%
Rue du Rhône
GENEVA
-5%
Bahnhofstrasse
ZURICH
$457
-4%
Königstraße
STUTTGART
$486
-1%
Kaufingerstraße
MUNICH
$836
-6%
Via Monte Napoleone
MILAN
$100
-7%
Chiado / Av. Liberdade
LISBON
$293
-2%
Preciados
MADRID
Note: Displayed change in rent is in terms of USD/SF/Year. For annual change in local currency, please see detail on pages 14-18.
* - In order to compare international retail rents on a like for like basis we have converted UK Zone A rents to an overall rent based on a hypothetical 2,250 sq ft unit with full cover on
first floor or basement.
7
Global Retail Highlights | 2013 | Colliers International
Moscow Leads Eastern Europe in
Luxury Retail
Eastern Europe is enjoying a strong expansion of international
retailers, especially in Russia and Poland. New market entrants in
the past year have included Hollister in Warsaw, Debenhams in
Moscow and Moncler in Budapest. These retailers have focused
their expansion efforts on shopping centers, where relatively
healthy development levels in most markets have given them a
wide selection to choose from.
Russia continues to show robust growth, with consumption
driving a revival of large-scale development. While most
markets in Eastern Europe are not particularly sought after by
international luxury brands, Moscow is as popular as London,
Paris or Milan.
On Moscow’s Tverskaya Street, annual asking rents average
$742.23 USD per square foot and have grown by 9.5% in the
last year. Luxury retailers have opened new stores in high-end
shopping centers such as Crocus City Mall in the outskirts of
Moscow and the centrally located GUM department store. Prague
has also seen expansion from luxury retailers. Following the
opening of a Tiffany & Co. store last September, Jimmy Choo,
Chopard and Loro Piana each opened stores along Parizska Street.
“While high streets in Western Germany’s
primary cities are generally vibrant, those
in the East have suffered since the fall of the
Berlin Wall.”
Small Bio (Organic) Grocery Chains
Sprout Up in Germany
Chain stores have continued to expand into German high streets.
The best locations are becoming more important for chain stores’
strategies and as a result, rental growth is spreading in these
areas. A new grocery trend in Germany is a high street concept
developed by retailers like Rewe and Edeka. Such grocers are
smaller than normal supermarkets and locate in secondary
locations in and around quality city centers and high streets.
Specialist organic food retailers like Denn’s Biomarkt are also
sometimes located in city centers, malls or high streets.
While high streets in Western Germany’s primary cities are
generally vibrant, those in the East have suffered since the fall of
the Berlin Wall. Many large and ultimately over-sized shopping
centers were constructed outside of city centers, drawing
shoppers and retailers away from CBDs.
8
Global Retail Highlights | 2013 | Colliers International
Baltic Growth to top Europe
The Baltic nations of Estonia, Latvia and Lithuania have seen
steady economic growth, supported by gradual recovery in
domestic consumption. Retail markets remain stable, with
observed increases in asking rents reflecting a low vacancy level
and steady demand.
In 2014, Latvia will follow Estonia in adopting the euro as its
currency. Some expect this move to bolster economic growth. It
will certainly tighten the country’s bonds with Western Europe.
Latvia has shown a sustained recovery after the recession and its
output growth should be amongst the strongest in Europe, with
Latvia’s central bank estimating that the country’s economy will
grow by 4.1% in 2013.
Despite National Retail Declines,
Luxury Brands Grow in Vienna
Retail sales fell in Austria by 1.2% in the first half of 2013, as
compared with the same period in the previous year. But for
the Viennese luxury retail market, where wealthy tourists from
Europe, Asia and the Middle East come to shop for their favorite
brands, luxury options are still expanding. In the heart of the
historic city, SIGNA Holding’s Goldenes Quartier (Golden Quarter)
is undergoing a refurbishment, set to be complete in 2014. The
project features pedestrian-only streets, flagship retail, luxury
hotels and residences. Vivienne Westwood, Emporio Armani and
Louis Vuitton have already opened stores. More will do so through
next year, when a five-star Park Hyatt Hotel will also open its doors.
When complete, the project will contain approximately 123,785
square feet of retail space.
High Street Rents Rise in Oslo
Scandinavian economies are generally perceived as safe and stable.
While they have not been unaffected by the economic slowdown,
general stability combined with a gradual withdraw of austerity
measures should bring quick recovery. Norway, in particular, has
shown resilience to the crisis, characterized by decent GDP growth,
low unemployment, low household debt and strong consumer
confidence. Retail in the Nordics has remained relatively healthy,
with a steady demand from occupiers. In Oslo, High Street rents
were pushed up by increased demand from luxury retailers.
However, rents in Helsinki recorded a slight decrease.
Mixed Signals in Southern Europe
Southern European economies have become characterized by
recession, austerity measures, rising unemployment figures and
low consumer confidence. Yet despite this gloomy picture, retail
markets in prime locations remain stable. Top high streets in Madrid
and Rome have shown resilience. Rents along Rome’s international
fashion destination Via Condotti rose by 2.3% over last year. Milan
refuses to give up its title as fashion capital and continues to see
inflows of luxury and mid-market retailers. Despite these green
shoots, Lisbon has seen a gradual decline in rents.
Last year, the Spanish government introduced the liberalization
of trading hours, despite protests from small businesses and retail
workers. Whether this move has increased employment and retail
trade remains to be seen.
New Malls and Brands for the Middle
East
Saudi Arabia and the United Arab Emirates (UAE) continue to enjoy
solid economic growth, with good levels of consumer confidence
and retail spending. While luxury brands continue to grow robustly
in these markets now mid-market retailers are catching on and
accelerating their expansion. The shopping center development
pipeline in UAE remains high. With over 2.5 million square feet of
retail space, Yas Mall in Abu Dhabi will be UAE’s second-biggest
shopping center when it opens in 2014.
9
Global Retail Highlights | 2013 | Colliers International
Despite Egypt’s recent GDP growth of 2.2% in 2012, social unrest
will hurt foreign investment, exports and tourist spending. Some
international retailers have recently expanded into the country,
such as Salvatore Ferragamo and Michael Kors, opening new stores
in Cairo. However, recent political events put a question mark over
the future performance of the economy and real estate market.
In US, Philadelphia’s Walnut Street
Sees Biggest High Street Gains
Most U.S. high street rents increased over last year. In New York,
Fifth Avenue rents grew by 11 percent. At $3,052 per square foot,
Fifth Avenue rents are the most expensive in the world. On Las
Vegas Boulevard, asking rents grew by 25 percent.
Philadelphia’s Walnut Street showed the biggest gains in the U.S.,
with 33.8 percent growth. Walnut Street’s tenant mix is moving
away from local boutiques in favor of national brands with the
capability to pay those growing rents. Retail names that were
once only familiar in the nearby King of Prussia Mall are now
leasing space on Walnut. Recent additions include Ann Taylor
Loft, Intermix, Anne Klein, Ulta and the Cheesecake Factory.
Barneys will convert its discontinued Barneys Co-Op brand into a
Barneys New York location in 2014.
U.S. consumer retail spending has been trending up since 2009.
It grew 2.6% in Q1 and would likely have been even stronger
if not for the lost payroll tax cut. However, Q2 sales figures for
major retailers like Walmart, Macy’s and Kohls have shown
disappointing growth. Specialty retailers are hurting too. Many,
including Walmart, are expecting weak sales to continue through
the end of 2013.
The first half of 2013 averaged only 198,000 new jobs per month,
which is not enough to significantly affect unemployment. With
slowing manufacturing and housing construction employment,
we do not expect this trend to change this year. We also expect
further anemic GDP growth. The NAHB/First American
Improving Markets Index (IMI) is one that we watch closely. It
lists U.S. housing markets with at least six months of positive
growth in home prices, employment and single-family home
construction. In August, the IMI listed 247 metros as improving
markets, which is a year-over-year increase of 167 metros. While
IMI does show some recent softening, we hope that some of this
is due to a seasonal dip, much like the one the index showed in
August of last year.
“Philadelphia’s Walnut Street showed the
biggest gains in the U.S., with 33.8 percent
growth. Walnut Street’s tenant mix is
moving away from local boutiques in favor
of national brands with the capability to
pay those growing rents.”
Select United States Rents: USD/SF/Year
$80
10%
Pioneer Place
PORTLAND
$200
$375
7%
Union Square
SAN FRANCISCO
$60
25%
3%
Rodeo Drive
LOS ANGELES
$44
10%
$35
$1,325
25%
Las Vegas Blvd
LAS VEGAS
$18
$328
20%
Viliage of La Jolla
SAN DIEGO
10%
9%
-12%
Kierland/Scottsdale Rd
PHOENIX
$70
BLVD Place
HOUSTON
$76
$35
9%
5%
CityCentre
HOUSTON
$200
0%
Newbury St
BOSTON
$107
34%
Walnut St
PHILADELPHIA
$35
0%
13%
King Street
CHARLESTON
Peachtree St
ATLANTA
RENT/SF/YR > $500
Highland Viliage
HOUSTON
$42
11%
Easton Town Center
COLUMBUS
0%
Mockingbird Ln/Preston
DALLAS
$55
$3,052
0%
25%
Glastonbury Blvd
HARTFORD
Madison Ave Fifth Ave
NEW YORK NEW YORK
Michigan Ave
CHICAGO
$70 n/a
Santana Row
SAN JOSE
$450
$40
Brewery Blocks
PORTLAND
RENT/SF/YR $150 - $500
$45
Park Ave
ORLANDO
0%
RENT/SF/YR < $150
% Year Over Year
Rent Increase
% Rent Unchanged
Year Over Year
% Year Over Year
Rent Decrease
10
Global Retail Highlights | 2013 | Colliers International
Canadian Shopper Spending on Par
with U.S.
Canada’s recent influx of large American retail chains has
Canadian retailers feeling pricing pressure and struggling to adapt
to changing consumer demands. Large American retailers can
bring goods into Canada via north-south distribution networks
that are more efficient than lengthy Canadian east-west networks.
These efficiencies help American retailers to be extremely price
competitive, which is rapidly changing consumer habits.
Canadian shoppers’ spending now matches that of their southern
neighbor. While Canadian and American per capita retail
spending has moved in tandem in recent decades, a widening
gap emerged in 1994. This gap was due to the lowered value of
the Canadian dollar against the U.S. dollar. When the 2008 market
downturn struck, the Canadian dollar rose above parity and retail
spending per capita almost reached par. Since 2008, Canadian
retail spending per capita has risen to meet U.S. spending levels,
even surpassing the U.S. at one point.
Canada’s priciest high street, Bloor Street in Toronto saw a 1.6%
increase in asking rents over last year. Tiffany & Co, which has
been on the street since 1989, opened a new 5,800 square foot
flagship in August. Mulberry opened a new location on the street
at about the same time.
Select Western Canada Rents: USD/SF/Year
$49
3%
West 4th Avenue
VANCOUVER
$147
$197
40% $123
Alberni Street
VANCOUVER
33.3%
Robson Street
VANCOUVER
RENT/SF/YR > $500
-2%
RENT/SF/YR $150 - $500
RENT/SF/YR < $150
Granville Street
VANCOUVER
% Year Over Year
Rent Increase
% Rent Unchanged
Year Over Year
% Year Over Year
Rent Decrease
Select Eastern Canada Rents: USD/SF/Year
$197
-2%
Ste. Catherine St. West
MONTRÉAL
$29
-2%
Byward Market
OTTAWA
$59
-9%
Greene Avenue, Westmount
MONTRÉAL
$59
$310
-2%
$64
Spring Garden Road
HALIFAX
-26%
Rue de la Montagne
MONTRÉAL
1.6%
Bloor Street
TORONTO
RENT/SF/YR > $500
RENT/SF/YR $150 - $500
RENT/SF/YR < $150
% Year Over Year
Rent Increase
% Rent Unchanged
Year Over Year
% Year Over Year
Rent Decrease
Note: Displayed change in rent is in terms of USD/SF/Year. For annual change in local currency, please see detail on pages 14-18.
11
Global Retail Highlights | 2013 | Colliers International
Avenida Presidente Masaryk Rents
Grow in Advance of Facelift
The International Monetary Fund forecasts Mexico’s GDP will
only grow by 3.1% in 2013. However our medium- and longerterm outlook is quite positive. While the manufacturing sector
will remain the country’s main economic engine for at least
the next decade, Mexico has begun the transition to a serviceoriented economy, and domestic consumption will play a greater
and greater role in the nation’s economy. This transition will
propel demand in the retail industry.
Asking rents at Mexico’s trendiest shopping street, Avenida
Presidente Masaryk in Mexico City increased by 3.6% over
last year. The street is scheduled for a 150-million-peso facelift which will include new expanded sidewalks and other
enhancements intended to enhance the pedestrian experience.
Mexico has seen recent large capital investment from domestic
and foreign sources. We expect this investment to continue, further
bolstering the retail sector. The country has seen a recent influx
in foreign brands new to the market, especially in high-end malls.
Retailers are also experimenting with new sizes and formats,
including mixed-use developments in urban settings. They are also
moving forward with remodeling and expansion projects in order
to create more attractive and competitive developments.
12
Global Retail Highlights | 2013 | Colliers International
Brazil Beckons Global Chains
Brazil continues to hold the attention of international retail
brands and investors. Global awareness of the dynamic emerging
BRIC nation will rise further with two major sports events on the
horizon, the 2014 World Cup and 2016 Olympics.
Brazil’s retail markets are far from saturated and consumer
spending is growing, albeit at a varied rate. Retailers began 2013
with enthusiasm on the heels of 8.4% year-over-year retail sales
growth in 2012. Many chains made their expansion plans with
expectations of a similar trend for 2013. Those expectations were
not met. However, government stimulus measures in the form of
new cuts in tariffs on industrial items like steel and glass as well
as credit subsidies for furniture and appliance purchases for lowincome households should work to bolster manufacturing and
consumer spending.
The Brazilian Association of Franchising (ABF) forecasts that 122
new shopping malls will be built over the next three to five years.
Retail development which was once restricted to malls and street
retail is now emerging in formats new to the region, including strip
centers, hypermarkets and hub-oriented development organized
around transit centers, sports arenas and other major destinations.
São Paulo and Rio de Janeiro remain leaders in shopping quality
and diversity, achieving the most expensive rents and the focus of
growth for luxury brands. Brazil’s High Street rents are the most
costly in Latin America, according to the latest Colliers survey.
São Paulo’s luxury shopping street Rua Oscar Freire saw a 15%
growth in asking rents over the previous year. Rua Garcia D´Avila
in Rio de Janeiro saw rents grow by 6.7%.
There are a great number of international companies entering the market,
including Gap, H&M, Forever21, Kappa, Michael Kors, Topshop, Sephora,
Benefit and Daiso Japan. Existing brands, which have concentrated in the
country’s two largest cities, are now looking to other parts of the country for
expansion. Food service brands are also big on Brazil. Of the estimated fifty
chains which opened a first store in the country in 2013, 55% are restaurants.
Colombian Retail Developers Sense Potential,
Despite Obstacles
Colombia has seen a recent rise in retail options, with new brands and
developers entering the market. The country has twelve cities with populations
over 400,000 and while household incomes remain low, there has been a
steady expansion of the middle class. Despite this growing consumer base,
Colombia remains a country with a relatively low number of retail options.
Chilean department stores have made recent inroads in filling that void.
Falabella has opened nine locations and Ripley now operates three. Chilean
Select Latin America Rents: USD/SF/Year
Foreign retail developers including the Salvadorian
company Grupo Roble and Chile’s Parque Arauco
and Mall Plaza arrived in Colombia with plans to
build about 14 new malls combined across the
country. This new wave of development of singleowner leased retail will be unique in a country
where 94% of shopping mall stores are owned
as retail condominiums. For developers in the
region, both foreign and domestic, there are still
challenges, including a lack of variety of anchor
stores and a shortage of development-ready
land. But in a country where only an estimated
23 percent of retail sales are now made in malls,
developers and retailers see plenty of room for
shopping center growth to overcome those hurdles.
In Chile, King Copper Spurs
Retail Growth

$64
Chile’s strong retail sector growth is a result the
world’s most productive copper industry in the
North and the resulting purchasing power of those
employed in the direct and secondary jobs created
in service of that industry. Chile’s GDP growth of
4.1 percent in Q2 2013, as compared with the same
quarter in the previous year, was driven by the
mining and retail sectors. The nation’s retail sales
have shown continued positive growth since 2010.
4%
Presidente Masaryk
MEXICO CITY


$234
0%
Andino
BOGOTÁ
$176

$30
20%
4%
Garcia D’Avila
RIO DE JANEIRO
Jr. de la Union
LIMA

RENT/SF/YR > $500
$127
RENT/SF/YR $150 - $500
4%
Oscar Freire
SÃO PAULO
RENT/SF/YR < $150

% Year Over Year
Rent Increase
% Rent Unchanged
Year Over Year
$99
4%
Peatonal Florida
BUENOS AIRES
% Year Over Year
Rent Decrease
Note: Displayed change in rent is in terms of USD/SF/Year. For annual change in local currency, please see
detail on pages 14-18.
13
retail giant Cencosud bought the entire Colombian
operations of French retailer Carrefour—including
72 hypermarkets—for $2.6 billion. Specialty
retailers such as Victoria’s Secret and Forever 21 are
testing the waters too. Gap, which has been selling
its wares to Colombian consumers via the Internet
since 2010, recently opened two locations.
Global Retail Highlights | 2013 | Colliers International
Copper mines have paid high salaries in order to
hold on to a limited number of workers. These high
salaries have resulted in strong sales of luxury goods.
The nation’s highest-profile luxury shopping streets,
Santiago’s Alonso de Cordova and Nueva Costanera
saw asking rents increase 13% over last year.
Chile’s department stores, which include Falabella,
Cencosud and Ripley, have begun expanding
into Argentina, Peru, Brazil, Colombia and even
Mexico. Chilean retailers have also found success in
investing directly in the shopping centers which they
occupy. One recent news report tallied total future
investment by Chilean retailers in Latin American
shopping centers through 2017 at $7.143 billion.
22 New Shopping Centers to Serve
Peru’s Burgeoning Middle Class
Peru’s sustained growth has made it a popular destination for
foreign investment. The nation’s economic growth, primarily due
to a global demand for its mineral exports, caused the Peruvian
middle class to increase in recent years. New consumer wealth is
driving growing demand for retail goods.
Of Peru’s 62 shopping centers, 32 are located in the capital
city of Lima. Asking rents on Lima’s main pedestrian shopping
street Jirón de la Unión grew by 16.7% over 2012. This was the
largest percentage increase in Latin America according to our
High Street survey. 22 new shopping centers will open across
the country in 2013. 16 of these projects will be in the provinces
and the rest in Lima, according to data from the Asociación de
Centros Comerciales y de Entretenimiento del Perú.
Prices for minerals exports have diminished recently, causing a
decline in GDP growth. However, Peru’s retail sector is not done
expanding. Government observers estimate this year’s GDP
growth rate will still be six percent.
TWEET
THIS REPORT
Global Retail Survey
EXCHANGE RATE
QUOTED RENT
(USD) MAR. 31,
(LOCAL)
2013
TIME PERIOD
UNIT
CBD
RMB
Monthly
SM
6.21
829.10
148.85
8.2%
China
Wangfujing
RMB
Monthly
SM
6.21
1,833.10
329.10
8.9%
Guangzhou
China
Tianhe District
RMB
Monthly
SM
6.21
1,024.60
183.95
-3.8%
Hong Kong
China
Canton Road, Tsim Sha Tsui
HKD
Monthly
SF
7.76
1,290.00
1,993.98
8.9%
Hong Kong
China
Causeway Bay
HKD
Monthly
SF
7.76
721.00
1,114.47
8.7%
Hong Kong
China
Queen's Road Central, Central
HKD
Monthly
SF
7.76
1,350.00
2,086.73
13.9%
Shanghai
China
West Nanjing Road
RMB
Monthly
SM
6.21
2,055.00
368.94
6.2%
Bangalore
India
Brigade Road
INR
Monthly
SF
54.28
400.00
88.42
6.7%
Delhi
INDIA
Connaught Place
INR
Monthly
SF
54.28
725.00
160.27
11.5%
Delhi
India
Khan Market
INR
Monthly
SF
54.28
1,200.00
265.27
9.1%
Tokyo
Japan
Ginza - Chuo Street
JPY
Monthly
SM
94.22
45,375.00
536.89
0.0%
Makati
Philippines
Ayala Center
PHP
Monthly
SM
40.83
1,285.00
35.07
5.3%
Singapore
Singapore
Orchard Road
SGD
Monthly
SF
1.24
36.75
355.39
-4.0%
Seoul
South Korea Myeong-dong
KRW
Monthly
SM
1,111.90
249,900.00
250.47
-1.3%
Ha Noi
Vietnam
Hai Ba Trung, Hoan Kiem District
USD
Yearly
SF
1.00
109.40
109.40
0.5%
Ha Noi
Vietnam
Ly Thai To,
Hoan Kiem District
USD
Yearly
SF
1.00
130.80
130.80
4.2%
COUNTRY
STREET
Beijing
China
Beijing
USD RENT
SF/YEAR
ANNUAL
CHANGE
(LOCAL, %)
QUOTED
CURRENCY
CITY
ASIA PACIFIC
14
Global Retail Highlights | 2013 | Colliers International
Global Retail Survey
CITY
COUNTRY
STREET
QUOTED
CURRENCY
TIME PERIOD
UNIT
EXCHANGE RATE
QUOTED RENT
(USD) MAR. 31,
(LOCAL)
2013
USD RENT
SF/YEAR
ANNUAL
CHANGE
(LOCAL, %)
AUSTRALIA & NEW ZEALAND
Adelaide
Australia
Rundle Street Mall
AUD
Yearly
SM
0.96
2,750.00
265.99
-8.3%
Brisbane
Australia
Brisbane Mall
AUD
Yearly
SM
0.96
4,462.50
431.64
5.0%
Melbourne
Australia
Bourke Street Mall
AUD
Yearly
SM
0.96
7,000.00
677.08
0.0%
Sydney
Australia
Pitt Street Mall
AUD
Yearly
SM
0.96
9,000.00
870.53
0.0%
Auckland
New Zealand Queen Street
NZD
Yearly
SM
1.19
2,358.00
183.34
0.3%
Wellington
New Zealand Lambton Quay
NZD
Yearly
SM
1.19
1,801.00
140.03
-0.1%
Calgary, AB
Canada
17th Avenue SW
CAD
Yearly
SF
1.02
65.00
63.89
8.3%
Calgary, AB
Canada
Kensington
CAD
Yearly
SF
1.02
55.00
54.06
0.0%
Calgary, AB
Canada
Mission or 4th Street SW
CAD
Yearly
SF
1.02
60.00
58.97
9.1%
Calgary, AB
Canada
Stephen Avenue
CAD
Yearly
SF
1.02
45.00
44.23
0.0%
Edmonton
Canada
Jasper Avenue
CAD
Yearly
SF
1.02
32.00
31.45
6.7%
Edmonton
Canada
Whyte Avenue
CAD
Yearly
SF
1.02
35.00
34.40
0.0%
Halifax, NS
Canada
Spring Garden Road
CAD
Yearly
SF
1.02
65.00
63.89
-7.1%
Montréal, QC
Canada
Greene Avenue, Westmount
CAD
Yearly
SF
1.02
60.00
58.97
0.0%
Montréal, QC
Canada
Rue de la Montagne
CAD
Yearly
SF
1.02
60.00
58.97
-25.0%
Montréal, QC
Canada
Sherbrooke Street West,
Westmount
CAD
Yearly
SF
1.02
50.00
49.14
0.0%
Montréal, QC
Canada
Ste. Catherine St. West
CAD
Yearly
SF
1.02
200.00
196.58
0.0%
Ottawa, ON
Canada
Byward Market
CAD
Yearly
SF
1.02
30.00
29.49
0.0%
Ottawa, ON
Canada
The Glebe
CAD
Yearly
SF
1.02
45.00
44.23
0.0%
Ottawa, ON
Canada
Westboro
CAD
Yearly
SF
1.02
42.00
41.28
7.7%
Saskatoon, SK
Canada
21st St E
CAD
Yearly
SF
1.02
25.00
24.57
0.0%
Saskatoon, SK
Canada
Broadway Ave
CAD
Yearly
SF
1.02
30.00
29.49
11.1%
Toronto, ON
Canada
Bloor Street
CAD
Yearly
SF
1.02
315.00
309.61
1.6%
Vancouver, BC
Canada
Alberni Street
CAD
Yearly
SF
1.02
150.00
147.43
42.9%
Vancouver, BC
Canada
Granville Street
CAD
Yearly
SF
1.02
125.00
122.86
0.0%
Vancouver, BC
Canada
Robson Street
CAD
Yearly
SF
1.02
200.00
196.58
33.3%
Vancouver, BC
Canada
West 4th Avenue
CAD
Yearly
SF
1.02
50.00
49.14
5.3%
Victoria, BC
Canada
Government Street
CAD
Yearly
SF
1.02
50.00
49.14
-16.7%
Victoria, BC
Canada
Johnson Street
CAD
Yearly
SF
1.02
35.00
34.40
18.6%
CANADA
15
Global Retail Highlights | 2013 | Colliers International
Global Retail Survey
EXCHANGE RATE
QUOTED RENT
(USD) MAR. 31,
(LOCAL)
2013
TIME PERIOD
UNIT
Myslym Shyri
EUR
Monthly
SM
0.78
40.00
57.16
-11.1%
Austria
Graben, Kohlmarkt, Kärnter Straße,
Tuchlauben
EUR
Monthly
SM
0.78
400.00
571.60
0.0%
Minsk
Belarus
Nezavisimosti
EUR
Monthly
SM
0.78
43.00
61.45
2.4%
Antwerp
Belgium
Meir
EUR
Monthly
SM
0.78
150.00
214.35
7.1%
Sofia
Bulgaria
Vitosha Blvd
EUR
Monthly
SM
0.78
25.00
35.73
-34.2%
Zagreb
Croatia
Ilica
EUR
Monthly
SM
0.78
75.00
107.18
0.0%
Prague
Czech
Republic
Na Prikope
EUR
Monthly
SM
0.78
170.00
242.93
0.0%
Copenhagen
Denmark
Østergade
DKK
Yearly
SM
5.81
22,000.00
351.40
22.2%
Tallinn
Estonia
Viru Street
EUR
Monthly
SM
0.78
31.00
44.30
6.9%
Helsinki
Finland
Aleksanterinkatu
EUR
Monthly
SM
0.78
160.00
228.64
-5.9%
Paris
France
Champs-Élysées
EUR
Yearly
SM
0.78
7,000.00
833.59
0.0%
Berlin
Germany
Tauentzien
EUR
Monthly
SM
0.78
250.00
357.25
13.6%
Düsseldorf
Germany
Königsallee
EUR
Monthly
SM
0.78
240.00
342.96
0.0%
Frankfurt
Germany
Zeil
EUR
Monthly
SM
0.78
320.00
457.28
10.3%
Hamburg
Germany
Spitaler Straße
EUR
Monthly
SM
0.78
280.00
400.12
0.0%
Munich
Germany
Kaufingerstraße
EUR
Monthly
SM
0.78
340.00
485.86
3.0%
Stuttgart
Germany
Königstraße
EUR
Monthly
SM
0.78
320.00
457.28
0.0%
Athens
Greece
Ermous
EUR
Monthly
SM
0.78
150.00
214.35
0.0%
Budapest
Hungary
Váci utca
EUR
Monthly
SM
0.78
110.00
157.19
0.0%
Dublin
Ireland
Grafton Street
EUR
Yearly
SF
0.78
450.00
577.01
0.0%
Milan
Italy
Via Monte Napoleone
EUR
Monthly
SM
0.78
585.00
835.97
-1.7%
Rome
Italy
Via Condotti
EUR
Monthly
SM
0.78
450.00
643.05
2.3%
Riga
Latvia
Terbatas
EUR
Monthly
SM
0.78
29.00
41.44
7.4%
Vilnius
Lithuania
Didzioji
EUR
Monthly
SM
0.78
38.00
54.30
18.8%
Amsterdam
Netherlands
Kalverstraat
EUR
Monthly
SM
0.78
208.00
297.23
4.0%
Eindhoven
Netherlands
Demer
EUR
Monthly
SM
0.78
112.50
160.76
0.0%
Rotterdam
Netherlands
Lijnbaan
EUR
Monthly
SM
0.78
141.70
202.49
-2.3%
The Hague
Netherlands
Spuistraat
EUR
Monthly
SM
0.78
120.83
172.67
0.7%
Utrecht
Netherlands
Oude Gracht
EUR
Monthly
SM
0.78
108.33
154.80
0.3%
Oslo
Norway
Karl Johans Gate
NOK
Yearly
SM
5.85
18,000.00
285.97
28.6%
Warsaw
Poland
Nowy Swiat
EUR
Monthly
SM
0.78
95.00
135.76
5.6%
Lisbon
Portugal
Chiado / Av. Liberdade
EUR
Monthly
SM
0.78
70.00
100.03
-3.4%
COUNTRY
STREET
Tirana
Albania
Vienna
USD RENT
SF/YEAR
ANNUAL
CHANGE
(LOCAL, %)
QUOTED
CURRENCY
CITY
EUROPE
16
Global Retail Highlights | 2013 | Colliers International
Global Retail Survey
EXCHANGE RATE
QUOTED RENT
(USD) MAR. 31,
(LOCAL)
2013
TIME PERIOD
UNIT
Magheru
EUR
Monthly
SM
0.78
75.00
107.18
0.0%
Russia
Tverskaya
USD
Monthly
SM
1.00
666.00
742.23
9.5%
Saint Petersburg
Russia
Nevsky Prospekt
USD
Monthly
SM
1.00
290.00
323.19
1.4%
Belgrade
Serbia
Kneza Mihaila
EUR
Monthly
SM
0.78
110.00
157.19
0.0%
Bratislava
Slovakia
Obchodna
EUR
Monthly
SM
0.78
40.00
57.16
0.0%
Madrid
Spain
Preciados
EUR
Monthly
SM
0.78
205.00
292.95
2.5%
Stockholm
Sweden
Biblioteksgatan
SEK
Yearly
SM
6.52
14,000.00
199.29
0.0%
Geneva
Switzerland
Rue du Rhône
CHF
Yearly
SM
0.95
6,500.00
636.14
-12.2%
Zurich
Switzerland
Bahnhofstrasse
CHF
Yearly
SM
0.95
9,500.00
929.74
0.3%
Istanbul
Turkey
Abdi Ipekçi, Nişantaşı
USD
Monthly
SM
1.00
310.00
345.48
3.3%
Birmingham*
UK
High Street / New Street
GBP
Yearly
SF
0.66
141.00
214.20
0.0%
Bristol*
UK
Broadmead
GBP
Yearly
SF
0.66
77.00
117.08
-3.8%
Edinburgh*
UK
George Street
GBP
Yearly
SF
0.66
121.00
183.99
0.0%
Glasgow*
UK
Buchanan Street
GBP
Yearly
SF
0.66
168.00
255.45
0.0%
Leeds*
UK
Briggate street
GBP
Yearly
SF
0.66
127.00
193.11
2.4%
London*
UK
Old Bond Street
GBP
Yearly
SF
0.66
804.00
1,222.52
20.0%
Manchester*
UK
Market Street
GBP
Yearly
SF
0.66
168.00
255.45
0.0%
Kyiv
Ukraine
Kreschatyk
USD
Monthly
SM
1.00
240.00
267.47
-20.0%
Bogotá
Colombia
Andino
USD
Monthly
SM
1.00
200.00
222.89
0.0%
Buenos Aires
Argentina
Peatonal Florida
USD
Monthly
SM
1.00
88.90
99.08
4.2%
Rio de Janeiro
Brazil
Garcia D´Avila
BRL
Monthly
SM
2.02
320.00
176.36
6.7%
São Paulo
Brazil
Oscar Freire
BRL
Monthly
SM
2.02
230.00
126.76
15.0%
Mexico City
Mexico
Presidente Masaryk
USD
Monthly
SM
1.00
57.00
63.52
3.6%
Lima
Peru
Jr. de la Union
PEN
Monthly
SM
2.59
70.00
30.14
16.7%
COUNTRY
STREET
Bucharest
Romania
Moscow
USD RENT
SF/YEAR
ANNUAL
CHANGE
(LOCAL, %)
QUOTED
CURRENCY
CITY
LATIN AMERICA
MIDDLE EAST & NORTH AFRICA
Cairo
Egypt
El Kourba St., Lebanon St., Mazhar,
Shooting Club St.
USD
Monthly
SM
1.00
35.00
39.01
-28.6%
Jeddah
Saudi Arabia
Prince Mohammed Bin Abdul Aziz
Street
SAR
Yearly
SM
3.75
3,000.00
74.29
n/a
Riyadh
Saudi Arabia King Fahd Road and Olaya Rd
SAR
Yearly
SM
3.75
3,000.00
74.29
0.0%
Abu Dhabi
UAE
Khalifa Street
USD
Monthly
SM
1.00
50.00
55.72
11.1%
Dubai
UAE
Sheikh Zayed Road
USD
Monthly
SM
1.00
36.00
40.12
2.9%
* - In order to compare international retail rents on a like for like basis we have converted UK Zone A rents to an overall rent based on a hypothetical 2,250 sq ft unit with full cover
on first floor or basement.
SM = Square Meters, SF = Square Feet
17
Global Retail Highlights | 2013 | Colliers International
Global Retail Survey
EXCHANGE RATE
QUOTED RENT
(USD) MAR. 31,
(LOCAL)
2013
TIME PERIOD
UNIT
Peachtree Street
USD
Yearly
SF
1.00
55.00
55.00
0.0%
US
Newbury Street
USD
Yearly
SF
1.00
200.00
200.00
0.0%
Charleston, SC
US
King Street
USD
Yearly
SF
1.00
35.00
35.00
12.9%
Chicago, IL
US
Michigan Avenue
USD
Yearly
SF
1.00
328.00
328.00
9.3%
Columbus, OH
US
Easton Town Center
USD
Yearly
SF
1.00
35.00
35.00
0.0%
Dallas/Ft. Worth,
TX
US
Mockingbird Lane/Preston
USD
Yearly
SF
1.00
70.00
70.00
0.0%
Hartford, CT
US
Glastonbury Boulevard
USD
Yearly
SF
1.00
35.00
35.00
25.0%
Honolulu, HI
US
Kalakaua Avenue - Waikiki
USD
Yearly
SF
1.00
122.26
122.26
3.7%
Houston, TX
US
BLVD Place
USD
Yearly
SF
1.00
70.00
70.00
n/a
Houston, TX
US
CityCentre
USD
Yearly
SF
1.00
42.00
42.00
5.0%
Houston, TX
US
Highland Village
USD
Yearly
SF
1.00
76.00
76.00
8.6%
Las Vegas, NV
US
Las Vegas Blvd
USD
Yearly
SF
1.00
200.00
200.00
25.0%
Los Angeles, CA
US
Rodeo Drive
USD
Yearly
SF
1.00
450.00
450.00
3.4%
New York, NY
US
Fifth Avenue
USD
Yearly
SF
1.00
3,052.00
3,052.00
11.0%
New York, NY
US
Madison Avenue
USD
Yearly
SF
1.00
1,325.00
1,325.00
10.1%
Orlando, FL
US
Park Ave
USD
Yearly
SF
1.00
45.00
45.00
0.0%
Philadelphia, PA
US
Walnut Street
USD
Yearly
SF
1.00
107.00
107.00
33.8%
Phoenix, AZ
US
Kierland/Scottsdale Rd
USD
Yearly
SF
1.00
17.50
17.50
-12.5%
Portland, OR
US
Brewery Blocks
USD
Yearly
SF
1.00
40.00
40.00
10.0%
Portland, OR
US
Pioneer Place
USD
Yearly
SF
1.00
80.00
80.00
10.0%
San Diego, CA
US
Village of La Jolla
USD
Yearly
SF
1.00
44.28
44.28
19.8%
San Francisco, CA US
Union Square
USD
Yearly
SF
1.00
375.00
375.00
7.1%
San Jose/Silicon
Valley, CA
Santana Row
USD
Yearly
SF
1.00
60.00
60.00
25.0%
COUNTRY
STREET
Atlanta, GA
US
Boston, MA
USD RENT
SF/YEAR
ANNUAL
CHANGE
(LOCAL, %)
QUOTED
CURRENCY
CITY
UNITED STATES
18
US
Global Retail Highlights | 2013 | Colliers International
FOR FURTHER INFORMATION
> UNITED STATES
James Cook
+1 602 633 4061
James.Cook@colliers.com
> UNITED KINGDOM
Mark Charlton
+44 20 7487 1720
Mark.Charlton@colliers.com
> INDONESIA
Ferry Salanto (Jakarta)
+62 215211400
Ferry.Salanto@colliers.com
> CANADA
Curtis Scott
+1 604 662 2667
Curtis.Scott@colliers.com
Matthew Thompson
+44 207 344 6907
Matthew.Thompson@colliers.com
> JAPAN
Yumiko Yasuda
+81 3 5563 2174
Yumiko.Yasuda@colliers.com
> MEXICO
Flavio Gómez Aranzubia
+52 55 5209 3682
Flavio.Gomez@colliers.com
> ARGENTINA
Agustin Alcoleas
+54 11 4819 9534
aalcoleas@colliers.com.ar
> BRAZIL
Leandro Angelino
+55 11 3323 0015
Leandro.Angelino@colliers.com
> CHILE
Marcelo Cooper
+56 2 2496 1541
Marcelo.Cooper@colliers.com
> COLOMBIA
Aurora Turriago
+57 1 594 2333
Aurora.Turriago@colliers.com
> PERU
Sandro Vidal
+51 12 240 804
svidal@colliers.com.pe
> EUROPE/ MIDDLE EAST/
AFRICA
Zuzanna Baranowska
+44 207 487 1628
Zuzanna.Baranowska@colliers.com
Bruno Beretta
+44 2073446938
Bruno.Beretta@colliers.com
19
> FRANCE
Renaud Roger
+33 1 56 88 93 88
Renaud.Roger@colliers-keops.fr
> GERMANY
Andreas Trumpp
+49 89 540411 040
Andreas.Trumpp@colliers.de
> CENTRAL & EASTERN EUROPE
Damian Harrington
+420 226 537 624
Damian.Harrington@colliers.com
> CHINA
Carlby Xie (China and Shanghai)
+0086 21 6141 3688
Carlby.Xie@colliers.com
Cary Sheih (Beijing)
+0086 10 8518 1633
Cary.Sheih@colliers.com
Bryan Chan (Guangzhou)
+0086 20 3819 3948
Bryan.Chan@colliers.com
> HONG KONG
Simon Lo
+00852 2822 0511
Simon.Lo@colliers.com
> INDIA
Surabhi Arora
+91 124 456 7580
Surabhi.Arora@colliers.com
Amit Oberoi
+91 124 456 7571
Amit.Oberoi@colliers.com
> KOREA
Gemma Choi
+82 2 6740 2015
Gemma.Choi@colliers.com
> PHILIPPINES
Karlo Pobre (Manila)
+63 2 888 9988
Karlo.Pobre@colliers.com
> SINGAPORE
Siew-Chuin Chia
+65 6531 8589
Siew-Chuin.Chia@colliers.com
Leonard Tay
+65 6531 8658
Leonard.Tay@colliers.com
> THAILAND
Antony Picon (Bangkok)
+66 2656 7000
Antony.Picon@colliers.com
Surachet Kongcheep (Bangkok)
+66 2 656 7000
Surachet.Kongcheep@colliers.com
> VIETNAM
David Jackson (HCMC)
+84 83 827 5665
David.Jackson@colliers.com
> AUSTRALIA
Nora Farren
+61 2 9257 0289
Nora.Farren@colliers.com
> NEW ZEALAND
Alan McMahon
+64 9 356 8811
Alan.McMahon@colliers.com
Research & Forecast Report | Quarter 2013 | Sector | Colliers International
Chris Dibble
+64 9 359 7919
Chris Dibble@colliers.com
CONTRIBUTORS
Cliff Plank
National Director, GIS and Mapping
| USA
Cliff.Plank@colliers.com
Jeff Simonson
U.S. Senior Research Analyst | USA
jeff.simonson@colliers.com
Lauren Lebel | Global Brand Designer
482 offices in
62 countries on
6 continents
United States: 140
Canada: 42
Latin America: 20
Asia Pacific: 195
EMEA: 85
$2
billion in
annual revenue
1.12
billion square feet
under management
13,500
professionals
and staff
Editor:
James Cook
Director of Research | USA
+1 602 633 4061
James.Cook@colliers.com
Colliers International
601 Union Street, Suite 4800
Seattle, WA 98101
TEL +1 206 695 4200
> Brokerage: Landlord & Tenant Representation
> Corporate Solutions
> Investment Services
> Project Management
> Property Marketing
> Real Estate Management Services
> Research Services
> Valuation and Advisory Services
ACROSS EVERY PROPERTY TYPE
> Office
> Industrial
> Retail
> Hotels
> Residential
> Mixed Use
HOW ELSE CAN WE HELP YOU?
contact@colliers.com
About Colliers International
Colliers International is a global leader in commercial real estate services, with over 13,500
professionals operating out of more than 482 offices in 62 countries. A subsidiary of FirstService
Corporation, Colliers International delivers a full range of services to real estate users, owners
and investors worldwide, including global corporate solutions, brokerage, property and asset
management, hotel investment sales and consulting, valuation, consulting and appraisal services,
mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked
Colliers International as the second-most recognized commercial real estate firm in the world.
colliers.com
Copyright © 2013 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to
ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult
their professional advisors prior to acting on any of the material contained in this report.
Accelerating success.