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Global Retail Highlights - Spring 2010

Jun 11, 2010
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SPRING 2010 | RETAIL

HIGHLIGHTS

GLOBAL

Premier Retail Rents Down for Second Year, But Signs Mounting for Bounce Back
ROSS J. MOORE Chief Economist | USA
GLOBAL TOP TEn RETAIL STRIPS
(USD PER SQUARE FOOT PER YEAR)
RETAIL STRIPS 2010 AnnUAL CHAnGE (%)

Paris ­ Champs Élysées New York ­ Fifth Avenue Hong Kong ­ Russell Street, Causeway Bay London ­ Bond Street Milan ­ Via Monte Napoleone Sydney ­ Pitt Street Mall Zurich ­ Bahnhofstrasse London ­ Oxford Street Rome ­ Rome City Center New York ­ Madison Avenue

1,255.90 1,250.00 1,205.46 1,174.24 929.37 768.85 727.71 719.70 627.95 590.00

2.04 -10.71 1.30 51.66 -1.33 71.43 18.57 27.69 -3.85 -21.33

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 effects 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 profile stores. The ROB Claymore/Robb Report Global Luxury Index ETF, for example, shows a significant 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 financial 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. With the global economy gaining traction and credit markets improving, retailers with a strong balance sheet are quickly gaining the confidence to expand into markets previously viewed as too expensive or difficult to penetrate. Although a move to discount retail is apparent in many countries, luxury retail is still a viable sector and one that is still in a long-term uptrend. The emergence of a sizeable middle class in Asia Pacific, the Middle East and central and eastern Europe is sure to continue, and these "aspirational" consumers will be a key source of growth for many luxury retailers. Within the U.S., most top retail corridors saw rents drop for a second year. New York's Fifth Avenue saw rents decrease by $150 per square foot (PSF) to register $1,250 PSF, while Madison Avenue fell $160 to $590 PSF. Chicago's North Michigan Avenue saw rents slump $25 to $225 PSF, while San Francisco's Union Square district saw rents hold steady at $400 PSF. Los Angeles' Rodeo Drive, however, registered a small increase, rising by $23 to $423 per square foot (PSF).
GLOBAL LUXURY RETAILER InDEX*
30 25 20 15 10 5 0 2007 2008 2009 2010

REGIOnAL RESEARCH COnTACTS
nORTH AMERICA Ross Moore, ross.moore@colliers.com EUROPE/MIDDLE EAST/AFRICA Andreas Trumpp | Germany andreas.trumpp@colliers.com Antonin Prade | France antonin.prade@colliers.com Mark Charlton | United Kingdom mark.charlton@colliers.com ASIA PACIFIC Simon Lo, simon.lo@colliers.com LATIn AMERICA Mario Rivera, mario.rivera@colliers.com AUSTRALIA/nEW ZEALAnD Felice Spark, felice.spark@colliers.com JAPAn Yumiko Yasuda, yumiko.yasuda@colliers.com

In Europe, Paris' Avenue des Champs-Élysées saw rents rise 2.0% (in local currency) to $1,256 PSF, while London's Bond Street was up sharply to $1,174 PSF. In Asia Pacific, Ginza-Chuo Avenue in Tokyo saw rents fall modestly to $546 PSF, while Hong Kong's Causeway Bay district saw rents increase by 1.3% to $1,205. A full ranking of the top 50 streets can be found on page five of this report.

*ROB Claymore/Robb Report Global Luxury Index ETF

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HIGHLIGHTS | SPRING 2010 | ReTAIl | GlOBAl

GLOBAL RETAIL SURVEY
MEASURE CITY COUnTRY STREET QUOTED TIME CURREnCY PERIOD EXCHAnGE RATE (USD) UnIT MAR. 31, 2010 AnnUAL CHAnGE (LOCAL, %)

QUOTED REnT

USD REnT PSF/YEAR

EUROPE, MIDDLE EAST, AFRICA Tirana Vienna Antwerp Sofia Zagreb Prague Copenhagen Cairo Helsinki Paris Berlin Düsseldorf Frankfurt Hamburg Munich Stuttgart Athens Dublin Tel Aviv Milan Rome Riga Kaunas Klaipeda Vilnius Amsterdam Eindhoven Rotterdam The Hague Utrecht Oslo Warsaw Lisbon Doha Bucharest Moscow St. Petersburg Riyadh Belgrade Bratislava Madrid Stockholm Geneva Zurich Albania Austria Brussels Bulgaria Croatia Czech Republic Denmark Egypt Finland France Germany Germany Germany Germany Germany Germany Greece Ireland Israel Italy Italy Latvia Lithuania Lithuania Lithuania Netherlands Netherlands Netherlands Netherlands Netherlands Norway Poland Portugal Qatar Romania Russia Russia Saudi Arabia Serbia Slovakia Spain Sweden Switzerland Switzerland Myslym Shyri Graben, Kohlmarkt Meir Vitosha Blv Ilica Street Na Prikope Østergade (Strøget) Mohandeseen Aleksanterinkatu Champs Élysées Alexanderplatz Königsallee Goethestraße Spitaler Straße Kaufingerstraße Koenigstrasse (Königstraße) Ermou Grafton Street Ibn Gvirol Via Monte Napoleone Rome City Center Kalku Laisves Alley H.Manto Street Didzioji Street Kalverstraat Demer Lijnbaan Spuistraat Oude Gracht Karl Johans Gate Nowy wiat Chiado zone Doha City Centre Magheru Street Tverskaya Nevsky Prospect Olaya Street Kneza Mihaila Obchodna Street Preciados Biblioteksgatan Rue du Rhône Bahnhofstrasse EUR EUR EUR EUR EUR EUR DKK USD EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR ILS EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR NOK EUR EUR USD EUR USD USD SAR EUR EUR EUR SEK CHF CHF Year Month Year Month Month Month Year Year Month Year Month Month Month Month Month Month Month Year Month Year Year Month Month Month Month Year Year Year Year Year Year Month Month Year Month Year Year Year Month Month Month Year Year Year SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SF SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM 0.74 0.74 0.74 0.74 0.74 0.74 5.52 1.00 0.74 0.74 0.74 0.74 0.74 0.74 0.74 0.74 0.74 0.74 3.70 0.74 0.74 0.74 0.74 0.74 0.74 0.74 0.74 0.74 0.74 0.74 5.95 0.74 0.74 1.00 0.74 1.00 1.00 3.76 0.74 0.74 0.74 7.22 1.06 1.06 675.00 350.00 1,560.00 75.00 70.00 170.00 18,000.00 1,200.00 180.00 10,000.00 300.00 230.00 180.00 220.00 330.00 320.00 200.00 300.00 350.00 7,400.00 5,000.00 15.00 17.00 15.00 30.00 2,300.00 1,350.00 1,300.00 1,250.00 1,250.00 13,000.00 100.00 77.50 785.00 90.00 4,000.00 4,500.00 1,900.00 100.00 32.00 160.00 14,000.00 5,000.00 8,300.00 84.77 527.48 195.92 113.03 105.50 256.20 303.05 111.52 271.27 1,255.90 452.12 346.63 271.27 331.56 497.34 482.27 301.42 405.41 105.50 929.37 627.95 22.61 25.62 22.61 45.21 288.86 169.55 163.27 156.99 156.99 203.06 150.71 116.80 72.96 135.64 371.75 418.22 46.96 150.71 48.23 241.13 180.21 438.38 727.71 (18.18) 6.67 20.00 (2.56) (50.00) (28.89) (20.00) (6.67) 11.11 18.57
SF = square feet

40.63 0.00 (37.50) (53.33) (5.56) (10.00) 16.13 2.04 0.00 2.22 (12.00) 10.00 4.58 (28.57) (39.64) 9.38 (1.33) (3.85) (40.00) (43.33) (40.00) (25.00) 6.98 0.00 0.00 0.00 0.00 13.04 0.00 3.33

SM = square meters

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| COLLIERS InTERnATIOnAL

HIGHLIGHTS | SPRING 2010 | ReTAIl | GlOBAl

GLOBAL RETAIL SURVEY
MEASURE CITY COUnTRY STREET QUOTED TIME CURREnCY PERIOD EXCHAnGE RATE (USD) UnIT MAR. 31, 2010 AnnUAL CHAnGE (LOCAL, %)

QUOTED REnT

USD REnT PSF/YEAR

EUROPE, MIDDLE EAST, AFRICA continued Istanbul Kyiv Abu Dhabi Dubai Birmingham Bristol Edinburgh Glasgow Leeds London London Manchester nORTH AMERICA Calgary, AB Edmonton, AB Halifax, NS Montreal, QC Ottawa, ON Saskatoon, SK Toronto, ON Vancouver, BC Victoria, BC Atlanta, GA Bakersfield, CA Boise, ID Boston, MA Charleston, SC Chicago, IL Cincinnati, OH Cleveland, OH Columbia, SC Columbus, OH Dallas/Ft. Worth, TX Denver, CO Ft. Lauderdale, FL Greenville, SC Hartford, CT Honolulu, HI Houston, TX Las Vegas, NV Los Angeles, CA Miami, FL Nashville, TN New York, NY
SM = square meters

Turkey Ukraine UAE UAE United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom Canada Canada Canada Canada Canada Canada Canada Canada Canada United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States
SF = square feet

Tevikiye Street Kreschatik Marina Mall Sheikh Zayed Road High Street / New Street Broadmead Princes Street Buchanan Street Commercial Street Bond Street Oxford Street Market Square 17th Avenue SW Downtown Edmonton Spring Garden Road Ste-Catherine Street Byward Market 21st Street E. Bloor Street Robson Street Government Street Peachtree Ming Avenue Milwaukee Street Newbury Street King Street Michigan Avenue, North Kenwood Chagrin Boulevard Gervais Street Easton Town Center Mockingbird Lane / Preston 2nd Ave - Cherry Creek North Las Olas Boulevard Woodruff Road Glastonbury Boulevard Kalakaua Avenue Westheimer Las Vegas Boulevard Rodeo Drive Lincoln Road 4340 Harding Pike Fifth Avenue

USD USD AED USD GBP GBP GBP GBP GBP GBP GBP GBP CAD CAD CAD CAD CAD CAD CAD CAD CAD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD

Month Month Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year

SM SM SM SM SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF

1.00 1.00 3.67 1.00 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

200.00 200.00 5,500.00 366.00 180.00 85.00 157.50 220.00 175.00 775.00 475.00 181.00 75.00 45.00 50.00 300.00 50.00 28.00 300.00 200.00 58.00 45.00 18.00 20.50 185.00 35.00 225.00 40.00 40.00 26.20 35.00 65.00 52.50 40.00 33.00 25.00 300.00 75.00 160.00 423.00 100.00 40.00 1250.00

223.05 223.05 139.28 34.01 272.73 128.79 238.64 333.33 265.15 1,174.24 719.70 274.24 73.53 44.12 49.02 294.12 49.02 27.45 294.12 196.08 56.86 45.00 18.00 20.50 185.00 35.00 225.00 40.00 40.00 26.20 35.00 65.00 52.50 40.00 33.00 25.00 300.00 75.00 160.00 423.00 100.00 40.00 1,250.00

0.00 11.11 30.95 (68.98) (8.60) (5.69) 18.28 4.79 51.66 27.69 0.00 (25.00) 0.00 5.26 0.00 0.00 0.00 7.14 (16.67) (10.77) (10.00) (40.00) (6.82) 0.00 (22.22) (10.00) 0.00

(22.22) (7.14) 5.26 (10.81) (16.67) (25.00) 0.00 5.75 6.38 (10.71)

COLLIERS InTERnATIOnAL |

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HIGHLIGHTS | SPRING 2010 | ReTAIl | GlOBAl

GLOBAL RETAIL SURVEY
MEASURE CITY COUnTRY STREET QUOTED TIME CURREnCY PERIOD EXCHAnGE RATE (USD) UnIT MAR. 31, 2010 AnnUAL CHAnGE (LOCAL, %)

QUOTED REnT

USD REnT PSF/YEAR

nORTH AMERICA continued New York, NY Orlando, FL Philadelphia, PA Phoenix, AZ Portland, OR Reno, NV Sacramento, CA San Diego, CA San Francisco, CA San Jose/Silicon Valley, CA Seattle/Puget Sound, WA Stockton, CA Tampa, FL Washington, DC West Palm Beach, FL ASIA PACIFIC Adelaide Brisbane Melbourne Perth Sydney Beijing Hong Kong Shanghai Bangalore Delhi Tokyo Auckland Christchurch Wellington Singapore Seoul Bangkok LATIn AMERICA Buenos Aires São Paulo Santiago Bogotá Mexico City Panama City Lima Argentina Brazil Chile Colombia Mexico Panama Peru Peatonal Florida Oscar Freire Alonso de Córdova Andino Presidente Mazaryk Calle 50 Jirón de La Unión USD USD USD USD USD USD USD Month Month Month Month Year Month Month SM SM SM SM SF SM SM 1.00 1.00 1.00 1.00 1.00 1.00 1.00 85.00 85.00 44.00 135.00 55.00 25.00 60.00 94.80 94.80 49.07 150.56 55.00 25.00 66.91 0.00 (18.27) 8.97 2.33 20.00 (1.79) Australia Australia Australia Australia Australia China China China India India Japan New Zealand New Zealand New Zealand Singapore South Korea Thailand Rundle Mall Queen Street Mall Bourke Street Mall Hay St. and Murray St. Malls Pitt Street Mall Mall at CWTC Russell Street, Causeway Bay Nanjing Road West Brigade Road Khan Market Ginza-Chuo Avenue Queen Street Cashel Street Lambton Quay Orchard Road Central District Rama I Road AUD AUD AUD AUD AUD RMB HKD RMB INR INR JPY NZD NZD NZD SGD KRW BHT Year Year Year Year Year Month Month Month Month Month Month Year Year Year Month Month Month SM SM SM SM SM SM SF SM SF SF SM SM SM SM SF SM SM 1.09 1.09 1.09 1.09 1.09 6.84 7.76 6.84 45.03 45.03 92.70 1.41 1.41 1.41 1.40 1132.12 32.37 2,950.00 4,000.00 5,250.00 3,550.00 9,000.00 1,250.00 780.00 1,550.00 300.00 900.00 45,375.00 1,800.00 700.00 2,122.00 38.50 198,200.00 2,500.00 252.01 341.71 448.50 303.27 768.85 203.93 1,205.46 252.87 79.95 239.84 545.91 118.87 46.23 140.13 330.19 195.25 86.15 0.00 7.27 (20.00) 0.00 (0.28) 71.43 4.17 1.30 3.33 20.00 (10.00) (11.76) 0.00 (6.67) (18.38) (5.52) United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States Madison Avenue Sand Lake Road Walnut Street Kierland/Scottsdale Road N Main NW 23rd Avenue South Virginia Street Galleria Boulevard Roseville Prospect/Girard Union Square Santana Row 5th Avenue Pacific Avenue Hyde Park M Street, NW Worth Avenue USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 590.00 30.00 100.00 41.00 54.00 32.89 24.00 30.00 78.00 400.00 54.00 55.00 33.00 31.00 120.00 100.00 590.00 30.00 100.00 41.00 54.00 32.89 24.00 30.00 78.00 400.00 54.00 55.00 33.00 31.00 120.00 100.00 (14.29) (16.67) (27.27) (6.25) (10.34) 0.00 (32.50) 0.00 (8.33) (21.33) (10.45) (16.67) (3.53)

Pleasanton/Walnut Creek, CA United States

SM = square meters

SF = square feet

P. 4

| COLLIERS InTERnATIOnAL

HIGHLIGHTS | SPRING 2010 | ReTAIl | GlOBAl

PREMIER FASHIOn RETAIL CORRIDOR REnTS (USD PSF/YEAR)
0 100 200 300 400 500 600 700

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Paris New York Hong Kong London Milan Sydney Zurich London Rome New York Tokyo Vienna Munich Stuttgart Berlin Melbourne Geneva Los Angeles St. Petersburg Dublin San Francisco Moscow Düsseldorf Brisbane Glasgow Hamburg Singapore Perth Copenhagen Athens Honolulu Montreal Toronto Amsterdam Manchester Birmingham Helsinki Frankfurt Leeds Prague Shanghai Adelaide Madrid Delhi Edinburgh Chicago Istanbul Kyiv Beijing Oslo 0

Champs Élysées 1,255.90 Fifth Avenue 1,250.00 Russell Street, Causeway Bay 1,205.46 Bond Street 1,174.24 Via Monte Napoleone 929.37 Pitt Street Mall 768.85 Bahnhofstrasse 727.71 Oxford Street 719.70 Rome City Center 627.95 Madison Avenue 590.00 Ginza-Chuo Avenue 545.91 Graben, Kohlmarkt 527.48 Kau ngerstraße 497.34 Koenigstrasse (Königstraße) 482.27 Alexanderplatz 452.12 Bourke Street Mall 448.50 Rue du Rhône 438.38 Rodeo Drive 423.00 Nevsky Prospect 418.22 Grafton Street 405.41 Union Square 400.00 Tverskaya 371.75 Königsallee 346.63 Queen Street Mall 341.71 Buchanan Street 333.33 Spitaler Straße 331.56 Orchard Road 330.19 Hay Street and Murray Street Malls 303.27 Østergade (Strøget) 303.05 Ermou 301.42 Kalakaua Avenue 300.00 Ste-Catherine Street 294.12 Bloor Street 294.12 Kalverstraat 288.86 Market Square 274.24 High Street / New Street 272.73 Aleksanterinkatu 271.27 Goethestraße 271.27 Commercial Street 265.15 Na Prikope 256.20 Nanjing Road West 252.87 Rundle Mall 252.01 Preciados 241.13 Khan Market 239.84 Princes Street 238.64 Michigan Avenue, North 225.00 Tevikiye Street 223.05 Kreschatik 223.05 Mall at CWTC 203.93 Karl Johans Gate 203.06
· ·

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United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95 $1.9 billion in annual revenue 2.4 billion square feet under management Over 15,000 professionals COLLIERS InTERnATIOnAL 601 Union Street, Suite 5300 Seattle, WA 98101
TEL +1 206 223 0866 FAX +1 206 757 9427

·

FOR MORE InFORMATIOn Ross J. Moore Chief Economist | USA
TEL +1 617 722 0221 EMAIL ross.moore@colliers.com

Copyright © 2010 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

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