Prime retail space in New York City costs $2,970 per square foot in annual rent, according to a quarterly study by commercial real estate specialist CBRE Group. But if you think that's stiff, consider Hong Kong, where prime space for retailers goes for a breathtaking $4,328 per square foot.
CBRE on Tuesday (May 14) released its quarterly rankings of the most expensive cities for choice retail space. After Hong Kong and New York, the top 10 was rounded out by London ($1,053), Paris ($1,050), Sydney ($1,018), Tokyo ($895), Melbourne ($851), Zurich ($822), Brisbane ($739) and Moscow ($739). All those rents are in U.S. dollars.
In the top cities, rents for retailers haven't actually risen since late last year, the study said. That hasn't stopped an increasing squeeze in Hong Kong, where demand from international luxury brands has pushed traditional retailers out of prime space. In New York's high-rent district along Fifth Avenue between 49th and 59th, there's still prime space available. However, in London and Paris, new high-end retailers are largely looking for alternatives to prime space.
Rents for prime retail space in other U.S. cities include Los Angeles's Rodeo Drive ($580), San Francisco's Union Square ($575) and Chicago's Michigan Avenue ($480), followed by Miami ($300), Washington, D.C. ($225), Dallas ($170), Boston ($150), Philadelphia ($135), Seattle ($83) and Denver ($57), according to a CBRE study from earlier this year.
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