Global

Colliers International 2010 Global Retail Highlights report

Premier Retail Rents Down for Second Year, But Signs Mounting for Bounce Back

ROSS J. MOORE Chief Economist | USA
For a second consecutive year, premier street front rents in almost every region of the world moved lower during the past 12 months. As the lingering eff ects of the global downturn reduced demand for some of the world’s most prime real estate, rents followed suit. Despite an improved global economic landscape, retailers were still expressing caution in terms of expanding and committing to new stores. Evidence was mounting, however, to suggest the worst of the downturn was over and highend retailers would be back pressing for more high profi le stores. The ROB Claymore/Robb Report Global Luxury Index ETF, for example, shows a signifi cant bounce back beginning early- to mid-2009 as investors began to sense that high-end consumers had begun to resume their big spending ways after nearly a two year hiatus. Two sub-categories worth mention are fi nancial centers, which are still sluggish but not to the same extent as a year ago, and tourism-dependent cities, which were more mixed but generally up relative to last year. With many of the world’s rich feeling more secure and comfortable with luxury purchases, demand for high-end retail premises is expected to increase over the coming year.

Author(s): several

Source: Colliers PropertyPartners

Published: 11.06.2010