TORONTO--(BUSINESS WIRE)--The contact phone number for Karen Nussbaum should read: 416-301-3193/ 416-599-024 ext. 227 instead of 416-301-3193/ 416-599-0024 ext. 227.
The corrected release reads:
CANADIAN RETAIL MARKET REMAINS STRONG WITH CONTINUED GROWTH GLOBAL MARKETS REBOUND
The Canadian retail real estate market continues to have an upwards trend in 2011, according to Cushman & Wakefield’s (C&W) Main Streets Across the World 2011 Research Report, released today.
In Toronto, Bloor Street has remained stable, and is ranked as the 20th most expensive street in the world for retail space. This is largely due to continued consumer spending in Canada, along with heightened interest in Canadian presence from retailers in the United States, particularly in larger urban markets. Demand for space on the key high streets may improve further, with several retailers planning to open new stores.
Of all Canadian main streets, Queen Street West in Toronto is the only area that has seen a decrease in rental rates and activity. A few well known US based retailers that opened on Queen Street West in 2010 have since relocated their operations, driven by more historical based location preferences.
While most Canadian retail markets remained stable, some other main streets in Canada have experienced great increases in rates and activity. Of note, rates on Edmonton’s Whyte Avenue jumped a whopping 14.3 per cent from 2010 to 2011.
Vancouver’s Robson Street also experienced a massive increase in rates, jumping from an average $220/square foot annually to $240, an increase of 9.1 per cent.
In Montreal, Rue Saint-Catherine West, street-level rents increased by an average of 6.7 per cent.
“The strong Canadian Dollar has created an attractive market for US retailers looking to do business in Canada,” said John Crombie, Senior Managing Director, C&W. “With the strong dollar, retailers have increased profit margins when selling their goods in Canada. That is the largest force behind Canadian retail rental rates not only remaining stable, but increasing in markets such as Edmonton, Vancouver and Montreal.”
Below is the breakdown for main street rental rates globally:
Despite the fragile economic recovery and subdued consumer sentiment in many countries, global retail markets have rebounded strongly during the last year according to Cushman & Wakefield. Over four-fifths (81 per cent) of the 63 countries surveyed by the global real estate adviser for its Main Streets Across the World report recorded prime rents increasing or remaining static over the year to June. This represents a large increase on the previous year (66 per cent). Around one fifth of countries (19 per cent) saw rents falling, compared with over one third (34 per cent) in 2010.
The report provides a barometer of the global retail market, tracking rents in the top 278 shopping locations across 63 countries. It includes a ranking, produced using the most expensive location in each of the countries.
New York’s Fifth Avenue, where rents jumped by 21.6 per cent, retained its spot as the most expensive shopping street in the world for the tenth year running. Causeway Bay in Hong Kong remained in second place and Tokyo’s Ginza in third.
The biggest climber in the top ten was Pitt Street Mall in Sydney, Australia, which jumped from ninth place to fourth following major redevelopments. Rents in the pedestrian street leapt by 33.3 per cent year-on-year. Despite a rental increase of 4.3 per cent, London’s New Bond Street dropped two rankings, from fourth to sixth. The UK street falls behind Avenue des Champs-Elysées in Paris which is now the most expensive retail location in Europe having registered a rental uplift of 5.3 per cent, compared with a decrease of 9.5 per cent last year.
Similar to last year, the Asia-Pacific and Latin America regions lead the global growth in retail rents. In Asia-Pacific, which overall saw a rental uplift of 12.2 per cent, Wangfujing in Beijing recorded the largest growth (109.5 per cent) and is the biggest riser globally this year. In South America, in which rents rose overall by 10.6 per cent, Garcia D’avilla street in Rio de Janeiro was the highest climber with a rental uplift of 52.2 per cent.
Growth across Europe (1.9 per cent) was considerably more restrained and - with exception of the Middle-East and Africa (0per cent) - lagged behind other regions. However, it bounced back from the profound decline recorded last year (4.2 per cent). Helsinki city centre showed the strongest growth in Europe, with a rental increase of 33.3 per cent.
The world’s ten most expensive shopping streets 2011
| Rank | Rank | Country | City | Street | US$/sq | €/sq | per cent | |||||||||||||||||||||
| 2011 | 2010 | ft/year | m/year | change | ||||||||||||||||||||||||
| 1 | 1 | USA | New York | Fifth Avenue | 2,250 | 16,704 | +21.6 | |||||||||||||||||||||
| 2 | 2 | Hong Kong | Hong Kong | Causeway Bay | 1,943 | 14,426 | +16.7 | |||||||||||||||||||||
| 3 | 3 | Japan | Tokyo | Ginza | 1,044 | 7,750 | +8.7 | |||||||||||||||||||||
| 4 | 9 | Australia | Sydney | Pitt Street Mall | 995 | 7,384 | +33.3 | |||||||||||||||||||||
| 5 | 5 | France | Paris | Avenue des Champs Elysées | 992 | 7,364 | +5.3 | |||||||||||||||||||||
| 6 | 4 | UK | London | New Bond Street | 930 | 6,901 | +4.3 | |||||||||||||||||||||
| 7 | 6 | Italy | Milan | Via Montenapoleone | 916 | 6,800 | +0.0 | |||||||||||||||||||||
| 8 | 7 | Switzerland | Zurich | Bahnhofstrasse | 883 | 6,553 | +0.0 | |||||||||||||||||||||
| 9 | 8 | South Korea | Seoul | Myeongdong | 635 | 4,714 | +0.6 | |||||||||||||||||||||
| 10 | 10 | Germany | Munich | Kaufingerstrasse | 533 | 3,960 | +6.5 |
Source: Cushman & Wakefield (full ranking contained in the report)
John Strachan, Global Head of Retail, said, “The recovery in the West is fragile but our offices have seen enhanced levels of business, particularly in the major city centres which are on the shopping lists of many international brands. Supply is short and both rents and prices are being forced upwards. 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.’’
Martin Mahmuti in the EMEA Research team: “The growth in global retail markets is being supported by aggressive retailer expansion in emerging markets and fierce competition for the best and most high-profile global shopping locations amongst successful brands. We do not foresee international activity slowing down; occupier demand is expected to remain robust as retailers seek to enter new prime markets abroad rather than looking for compromised locations in their own back yards. This trend will be enhanced by multi-channel retailing whereby tertiary locations will be almost entirely replaced by on-line transactions over time.”
Gene Spiegelman, Executive Vice President, New York, said, “Fifth Avenue has once again confirmed its place as the world’s most sought-after position for the foremost international retail and fashion brands. The ability for a retail brand to interact with a large, diverse and frequently changing consumer population has allowed Fifth Avenue rental values to exceed expectations. This is especially significant given the recent global economic challenges. Global retail brands have become ever more sophisticated utilizing both traditional and social media marketing channels, however, these brands still recognize the immense value created via strategically placed “brick and mortar” retailing, for which Fifth Avenue has been acknowledged as the leading global high street.”
Peter Mace, Head of Central London Retail, said, “Whilst New Bond Street has dropped in the rankings, it remains one of the most sought after locations in the world for luxury brands, with demand far outstripping the supply of available accommodation. The last open market letting to take place in the prime section of the street was in December 2009 when 169 New Bond Street was let to Piaget on a new 15 year lease at a record rent. There is no question that rental levels have increased over the past twenty months but to date, a landlord has not been able to secure vacant possession of a prime shop in order to create new market evidence. I am sure it is only a matter of time before Bond Street re-establishes itself close to the top of the rankings.”
Christian Dubois, Head of Retail Services France, commented, “While austerity measures have harmed prospects for household consumption growth in France, the main thoroughfares of Paris remain attractive to international operators. The high streets market has notably benefited from an increasing number of tourists and from a resurgence in the luxury sector, as shown by several openings in the French capital and by department stores which have continued to move up-market.
“Other movements revealed a keen desire among international mass-market retailers to secure top sites and to seize the last remaining opportunities in the most established areas. The Champs-Elysées has seen several high-profile brands taking stores such as Banana Republic, Levi's and Marks and Spencer after Tommy Hilfiger in 2010. Though rental growth on Paris’ most famous avenue has been limited so far, we expect prime rents to rise further in the short term as the shortage of space seems destined to last.”
To obtain a full copy of the report visit www.cushwake.com or to arrange to speak with a Cushman & Wakefield expert, please contact Karen Nussbaum, Mansfield Communications at 416.301.3193/416-599-0024 ext. 227 or karen@mcipr.com.
Visit Cushman & Wakefield’s Knowledge Center at www.cushmanwakefield.com to access other reports on leading real estate issues, trends and market statistics from around the world.
About Cushman & Wakefield
Cushman & Wakefield is the world's largest privately-held commercial real estate services firm. Founded in 1917, it has 234 offices in 61 countries and more than 13,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies. It offers a complete range of services within five primary disciplines: Transaction Services, including tenant and landlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investment management, investment banking, debt and equity financing; Corporate Occupier & Investor Services, including integrated real estate strategies for large corporations and property owners; Consulting Services, including business and real estate consulting; and Valuation & Advisory, including appraisals, highest and best use analysis, dispute resolution and litigation support, along with specialized expertise in various industry sectors. A recognised leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Centre at www.cushmanwakefield.com.