Retail rental rates in Sydney’s Pitt Street Mall still rank amongst the most expensive in the world, according to the latest research by Colliers International.
The annual Colliers International 2013 Global Retail Highlights Report shows Pitt Street Mall is now ranked 8th in the top 10 list of streets with the highest retail rents, with rents in the mall averaging $US871/sq ft, or $9,375/sq m.
The report found that retail rents are most expensive on High Streets in New York, London and Hong Kong with the Big Apple's Fifth Avenue topping the list at $US32,851/sq m or $US3,052/sq ft.
London's Queen’s Road Central and Canton Road, Tsim Sha Tsui in Hong Kong had rents of $US22,464/sq m ($US2,087/sq ft) and $US21,463/sq m ($US1,994/sq ft) respectively.
Michael Bate, Colliers International Head of Retail, said the Australian CBD was once again a popular shopping destination.
“The continuing refurbishment and expansion of Australia’s major city centre retail destinations, coupled with the arrival of new international brands such as Apple, Zara and Topshop and the expanding presence of luxury brands in Australia, has reinvigorated CBD retailing,” he said.
“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 centres.
Mr Bate said the success of new development in CBDs around Australia had seen increased pedestrian activity through the core CBD retail districts, contributing to the resurgence in popularity of these areas.
“The largest CBD retail project under construction is The Emporium in Melbourne,” he said.
“At around 46,000square metres, the development will add around 200 new retail outlets to the market.
The 2013 Global Retail Highlights Report indicates increasing sales around the world, growing rents in highly coveted locations, and rising demand for retail presence in key tourist destinations.
“Luxury brands are building a strong presence in not only Sydney’s Pitt Street Mall but also in other sought-after shopping districts such as Regent Street in London, while international brands are opening new flagship stores in high-traffic locations around the world,” Mr Bate said.
“Many well-recognised brands, such as Apple, Zara, Topshop and Victoria’s Secret, are taking advantage of increased consumer spending, especially among tourists.