New York City -- New York City remains the world’s most expensive retail destination as retailers focus on the major fashion capitals pushing global rents in prime locations even higher, according to the latest CB Richard Ellis (CBRE) Global Retail MarketView.
The average rent for space along Fifth Avenue from 49th Street up to 59th Street hit $1,900 per square foot in the first quarter. Hong Kong and Sydney came in second and third place in the rankings, with average per-square-foot rents of $1,697 and $1,301, respectively.
Nationwide the survey found that the price of retail space increased on the strength of increased consumer confidence and spending. The second-ranked U.S. retail market was Los Angeles, which placed twelfth worldwide with rents of $520 per square foot. Chicago slipped to fifteenth worldwide, with rents of $480 per square foot.
The fastest growing U.S. market was Dallas/Fort Worth. There, rents jumped by more than 30% in the last year to $150 per square foot -- less than one-tenth New York’s level.