Hong Kong's world famous Causeway Bay is now the most expensive place to rent for retailers (Click Image To Enlarge)
For the first time in 11 years, New York’s Fifth Avenue has been knocked off its spot as the most expensive retail street in the world by Hong Kong’s Causeway Bay.
Commercial real estate services firm Cushman & Wakefield reports that rents for retail spaces on Causeway Bay rose 34.9 percent year-over-year, to $2,630 per sq. ft. In contrast, rents on Fifth Avenue rose only 11.1 percent, to $2,500 per sq. ft. That growth rate was below the average for the U.S. retail market overall, which posted a 16.3 percent year-over-year increase in rents.
Fifth Avenue remains the most expensive retail street in the Americas, however. It’s followed by Times Square, with average rents of $2,100 per sq. ft.; Madison Avenue, with average rents of $1,100 per sq. ft. and East 57th Street, with average rents of $1,100 per sq. ft. Rounding out the list is Rodeo Drive in Los Angeles; North Michigan Avenue in Chicago; Union Square in San Francisco; Iguatemi Shopping in Sao Paulo, Brazil; Post Street in San Francisco and Bloor Street in Toronto.
Meanwhile, commercial real estate services CBRE reports that U.S. cities that will see the greatest growth in retail rents over the next two years will include Denver, Colo.; Austin, Texas; Nashville, Tenn.; Pittsburgh, Pa.; New York and San Francisco. CBRE researchers estimate that retail rents stateside are currently 14 percent below their pre-recession level and won’t reach their previous highs for another five years.
Hong Kong's Causeway Bay
Causeway Bay, Hong Kong Island is a heavily built-up area of Hong Kong, located on the northern shore of Hong Kong Island, and covering parts of Wan Chai and Eastern districts. The Chinese name is also Romanized as Tung Lo Wan as in Tung Lo Wan Road. The rent in the shopping areas of Causeway Bay is ranked as being one of the most expensive in the world, near that of London's Sloane Street and New York's Fifth Avenue.
New York City's Fifth Avenue
Fifth Avenue is a major thoroughfare in the center of Manhattan Island in New York City, New York. The section of Fifth Avenue that crosses Midtown Manhattan, especially that between 49th Street and 60th Street, is lined with prestigious shops and is consistently ranked among the most expensive shopping streets in the world. Fifth Avenue, and adjoining streets, are home to Macy's, Lord & Taylor, Bloomingdale's, Bergdorf Bergman, Saks Fifth Avenue, Cartier's, Tiffany & Company, Prada, Louis Vuitton, Barney's of New York, and FAO Schwarz, just to name a few. For several years starting in the mid-1990s, the shopping district between 49th and 57th Streets was ranked as having the world's most expensive retail spaces on a cost per square foot basis. In 2008, Forbes magazine ranked Fifth Avenue as being the most expensive street in the world. Some of the most coveted real estate on Fifth Avenue are the penthouses perched atop the buildings.
COMMENTARY: For my money, New York City's Fifth Avenue cannot be beat. I had the distinction of spending four days in Mid-Town during a business trip to The Big Apple, and stayed at a boutique hotel at the corner of 45th Street and 6th Avenue. Just down the block was the Museum of Modern Art, Fifth Avenue and the world famous Rockefeller Center was right across the street. I remember taking a leisurely stroll on Fifth Avenue and witnessing first-hand some of the best department stores and boutiques. I am not a shopper, but was very impressed.
I have not been to Hong Kong for a very long time, but it is definitely one of the greatest cities of the World. A lot has changed and Causeway Bay is one of those areas that has been developed into one of the top retailing areas of Hong Kong, with prices to match.
Courtesy of an article dated November 19, 2012 appearing in Retail Traffic Magazine
Comments