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Retail Global Highlights - Spring 2011

Jun 15, 2011
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SPRING 2011 | RETAIL

HIGHLIGHTS

GLOBAL

Premier Retail Streets Bounce-Back
ROSS J. MOORE Chief Economist | USA
After two successive years of lackluster growth, the world's top retail streets once again regained their vitality, as reflected by a general rise in rents in many of the world's premier shopping districts. As the lingering effects of the global downturn faded during the latter half of 2010, rising demand for the world's most prime retail real estate was evident in many countries as many new retailers sought to establish a foothold in the world's most prestigious avenues. The rebound in luxury retail can be seen in the share prices of leading high-end fashion retailers, all of which are up sharply since the beginning of 2010. Burberry in particular is up 124.5%, but as the chart below demonstrates, Bulgari, Richemont-Cartier, Tiffany, LVMH Moet Hennessey Louis Vuitton and PPR-Gucci are all up significantly over the past 17 months. This surge in share prices shows that investors have confidence that high-end consumers are back to their big-spending ways. Two features unique to high-end retail are the relative health of financial centers--which have recovered sharply since the lows of 2009--and tourism, which is benefiting such cities as London and New York. With the expansion of the global economy and key pockets of robust growth, luxury retailers are increasingly looking beyond traditional locations and venturing into emerging markets previously viewed as too new or not deep enough. This trend is expected to continue along with a mix of low-end, high-fashion retailers and traditional luxury retailers. 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 secular uptrend. "Aspirational" consumers and an expanding middle class-- particularly in Asia Pacific and South America--will be a key source of growth for many luxury retailers. In North America, most top retail corridors saw rents increase over the past year. New York's Fifth Avenue in particular saw rents spike, increasing by $900.00 per square foot (PSF) to $2,150.00 PSF, while Madison Avenue rose by a more modest $118.00 to $708.00 PSF. Chicago's North Michigan Avenue saw rents rise by $25.00 to $250.00 PSF; San Francisco's Union Square district saw rents increase by $20.00 to $340.00 PSF. Los Angeles' Rodeo Drive, however, registered only a small increase, rising by $2.00 to $425.00 PSF. Canada's premier retail avenues, including Bloor Street in Toronto and Robson Street in Vancouver, saw rents hold steady over the year while SteCatherine Street in Montreal saw a modest drop. In Europe, Paris' Avenue des GLOBAL LUXURY RETAILERS Champs-Élysées saw no change over the last 12 months, with rents averaging $873.00 PSF. London's Old Bond Street also held steady at $962.00 PSF. In Asia Pacific, rents in Ginza-Chuo Avenue in Tokyo held at $611.00 P S F, w h i l e H o n g K o n g 's Causeway Bay district saw rents increase by 25.6% to $1,510.00. A list of the top 50 streets can be found on page five of this report.
Share Price, USD

GLOBAL RETAIL STREETS

(USD PER SQUARE FOOT PER YEAR-- SELECT CITIES)
STREET/PRECINCT RENT

ANNUAL CHANGE (%)

New York ­ Fifth Avenue Hong Kong ­ Russell Street, Causeway Bay London ­ Old Bond Street Zurich ­ Bahnhofstrasse Milan ­ Via Monte Napoleone Sydney ­ Pitt Street Mall Paris ­ Avenue des Champs-Élysées Moscow ­ Tverskaya Street Tokyo ­ GinzaChuo Street Munich ­ Kaufingerstrasse

2,150.00 1,510.00 962.00 955.00 943.00 901.00 873.00 689.00 611.00 519.00

72.0 25.6 0.0 14.2 -2.7 11.1 0.0 21.3 0.0 0.0

REGIONAL RESEARCH CONTACTS
AMERICAS Ross Moore, ross.moore@colliers.com EUROPE/MIDDLE EAST/AFRICA Thomas Grounds, thomas.grounds@colliers.com ASIA PACIFIC Simon Lo, simon.lo@colliers.com AUSTRALIA/NEW ZEALAND Nerida Conisbee, nerida.conisbee@colliers.com JAPAN Yumiko Yasuda, yumiko.yasuda@colliers.com

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HIGHLIGHTS | SPRING 2011 | RETAIL | GLOBAL

GLOBAL RETAIL SURVEY
MEASURE CITY COUNTRY STREET QUOTED TIME CURRENCY PERIOD UNIT EXCHANGE RATE (USD) MAR. 31, 2011 ANNUAL CHANGE (LOCAL, %)

QUOTED RENT

USD RENT PSF/YEAR

EUROPE, MIDDLE EAST, AFRICA Tirana Vienna Minsk Sofia Zagreb Prague Copenhagen Tallinn Helsinki Paris Berlin Düsseldorf Frankfurt Hamburg Munich Stuttgart Athens Budapest Dublin Milan Rome Riga Vilnius Amsterdam Rotterdam The Hague Oslo Warsaw Bucharest Moscow St. Petersburg Riyadh Belgrade Bratislava Madrid Stockholm Geneva Zurich Kyiv Abu Dhabi Dubai Birmingham Edinburgh Albania Austria Belarus Bulgaria Croatia Czech Republic Denmark Estonia Finland France Germany Germany Germany Germany Germany Germany Greece Hungary Ireland Italy Italy Latvia Lithuania Netherlands Netherlands Netherlands Norway Poland Romania Russia Russia Saudi Arabia Serbia Slovakia Spain Sweden Switzerland Switzerland Ukraine UAE UAE United Kingdom United Kingdom Myslym Shyri Graben, Kohlmarkt, Kärntner Strasse Nezavisimosti Avenue Vitosha Blv Ilica Street Na Píkop Østergade (Strøget) Viru Street Aleksanterinkatu Avenue des Champs-Élysées Tauentzienstrasse Königsallee Zeil Spitalerstrasse Kaufingerstrasse Königstrasse Ermou Street Váci Utca Grafton Street Via Monte Napoleone Via Condotti Barona Street Didzioji Street Kalverstraat Lijnbaan Spuistraat Karl Johans Gate Ulica Nowy wiat Magheru Street Tverskaya Street Nevsky Prospekt King Fahad Road / Olaya Road Kneza Mihaila Street Obchodná Street Puerta del Sol Preciados Biblioteksgatan Rue du Rhône Bahnhofstrasse Vulitsya Khreshchatyk Khalifa Street Sheikh Zayed Road High Street / New Street Princes Street EUR EUR EUR EUR EUR EUR DKK EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR NOK EUR EUR EUR EUR SAR EUR EUR EUR SEK CHF CHF EUR USD USD GBP GBP Month Month Month Month Month Month Year Month Month Month Month Month Month Month Month Month Month Month Year Month Month Month Month Month Month Month Year Month Month Month Month Year Month Month Month Year Year Year Month Month Month Year Year SM 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 SF SF 0.71 0.71 0.71 0.71 0.71 0.71 5.29 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 5.59 0.71 0.71 0.71 0.71 0.62 0.71 0.71 0.71 6.34 0.92 0.92 0.71 1.00 1.00 0.62 0.62 50.00 350.00 45.00 65.00 45.00 200.00 18,000.00 25.00 170.00 555.00 220.00 240.00 270.00 240.00 330.00 320.00 180.00 110.00 300.00 600.00 450.00 20.00 32.00 187.50 108.30 104.20 14,000.00 86.00 75.00 438.00 203.57 3,000.00 110.00 40.00 175.00 15,000.00 7,500.00 9,475.00 193.00 40.00 16.00 140.00 110.00 78.62 550.31 70.75 102.20 70.75 314.46 316.19 39.31 267.29 873.00 345.91 377.36 424.52 377.36 518.86 503.14 283.02 172.95 422.95 943.39 707.54 31.45 50.31 294.50 170.28 163.84 232.59 135.22 117.92 688.67 320.08 446.95 172.95 62.89 275.15 219.78 756.24 955.38 303.46 44.61 17.84 224.43 176.34 3.32 5.00 4.46
SF = square feet

(11.11) 0.00 (18.18) (13.33) 0.00 17.65 0.00 4.17 (5.56) 0.00 0.00 4.35 0.00 9.09 0.00 0.00 (10.00) (12.00) (10.00) (2.70) 8.00 33.33 6.67 (2.17) (0.03) 0.03 3.70 (14.00) (16.67) 21.33 19.75 0.00 0.00 (11.11) 9.38 7.14 0.00 14.16 30.47

SM = square meters

P. 2

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HIGHLIGHTS | SPRING 2011 | RETAIL | GLOBAL

GLOBAL RETAIL SURVEY
MEASURE CITY COUNTRY STREET QUOTED TIME CURRENCY PERIOD UNIT EXCHANGE RATE (USD) MAR. 31, 2011 ANNUAL CHANGE (LOCAL, %)

QUOTED RENT

USD RENT PSF/YEAR

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 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 New York, NY Orlando, FL Philadelphia, PA Phoenix, AZ Portland, OR Reno, NV Sacramento, CA San Diego, CA
SM = square meters

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 United States United States United States United States United States United States United States
SF = square feet

Buchanan Street Briggate Old Bond Street Oxford Street Market Street Uptown 17th Avenue Downtown Edmonton Spring Garden Road Ste-Catherine Street West Byward Market Broadway Avenue Bloor Street Robson Street Government Street Peachtree Ming Avenue 8th Street Newbury Street King Street North Michigan Avenue Kenwood Gervais Street Easton Town Center Mockingbird Lane / Preston 2nd Ave - Cherry Creek North Las Olas Boulevard Main Street Glastonbury Boulevard Kalakaua Avenue Westheimer Las Vegas Boulevard Rodeo Drive Lincoln Road Hillsboro Road Fifth Avenue Madison Avenue Sand Lake Road Walnut Street Kierland/Scottsdale Road Main Street, Walnut Creek SW Morrison Street South Virginia Street Central Business District Prospect/Girard

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 USD USD USD USD USD USD USD USD

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 Year Year Year

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 SF SF SF SF SF

0.62 0.62 0.62 0.62 0.62 1.03 1.03 1.03 1.03 1.03 1.03 1.03 1.03 1.03 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 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

160.00 126.67 600.00 475.00 150.00 55.00 45.00 50.00 210.00 40.00 35.00 300.00 200.00 55.00 50.00 12.00 22.00 200.00 30.00 250.00 37.00 22.00 35.00 70.00 35.00 40.00 18.00 28.00 300.00 40.00 160.00 425.00 135.00 45.00 2,150.00 708.00 35.00 80.00 38.00 72.00 20.19 30.00 39.00 111.20

256.49 203.06 961.85 761.46 240.46 53.47 43.75 48.61 204.16 38.89 34.03 291.66 194.44 53.47 50.00 12.00 22.00 200.00 30.00 250.00 37.00 22.00 35.00 70.00 35.00 40.00 18.00 28.00 300.00 40.00 160.00 425.00 135.00 45.00 2,150.00 708.00 35.00 80.00 38.00 72.00 20.19 30.00 39.00 111.20

9.09 0.00 0.00 0.00 0.00 (26.67) 0.00 0.00 (4.55) (20.00) 25.00 0.00 0.00 (5.17) 11.11 (33.33) 7.32 8.11 (14.29) 11.11 (7.50) (16.03) 0.00 7.69 (5.41) 0.00 (45.45) 12.00 0.00 (46.67) 0.00 0.47 35.00 12.50 72.00 20.00 16.67 (20.00) (7.32) 33.33 (38.61) 25.00 30.00 42.56

Pleasanton/Walnut Creek, CA United States

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P. 3

HIGHLIGHTS | SPRING 2011 | RETAIL | GLOBAL

GLOBAL RETAIL SURVEY
MEASURE CITY COUNTRY STREET QUOTED TIME CURRENCY PERIOD UNIT EXCHANGE RATE (USD) MAR. 31, 2011 ANNUAL CHANGE (LOCAL, %)

QUOTED RENT

USD RENT PSF/YEAR

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 Hong Kong Shanghai Bangalore Delhi Tokyo Auckland Wellington Singapore Seoul Bangkok LATIN AMERICA Buenos Aires São Paulo Santiago Bogotá Mexico City Panama City Lima

United States United States United States United States United States United States United States Australia Australia Australia Australia Australia China China China China India India Japan New Zealand New Zealand Singapore South Korea Thailand Argentina Brazil Chile Colombia Mexico Panama Peru

Union Square ­ Post Street Santana Row Pine Street Pacific Avenue Hyde Park M Street, NW Worth Avenue Rundle Mall Queen Street Mall Bourke Street Mall Hay St. and Murray St. Malls Pitt Street Mall Mall at CWTC Russell Street, Causeway Bay Queen's Road, Central Nanjing Road West Brigade Road Khan Market Ginza-Chuo Avenue Queen Street Lambton Quay Orchard Road Central District Rama I Road Peatonal Florida Oscar Freire Alonso de Córdova Andino Presidente Mazaryk Calle 50 Jirón de La Unión

USD USD USD USD USD USD USD AUD AUD AUD AUD AUD RMB HKD HKD RMB INR INR JPY NZD NZD SGD KRW BHT USD USD USD USD USD USD USD

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

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

1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.03 1.03 1.03 1.03 1.03 6.57 7.79 7.79 6.57 45.40 45.40 82.87 1.32 1.32 1.26 1,105.83 30.39 1.00 1.00 1.00 1.00 1.00 1.00 1.00

340.00 48.00 44.93 30.00 32.00 125.00 65.00 3,000.00 4,250.00 5,500.00 3,250.00 10,000.00 1,350.00 980.00 880.00 1,920.00 317.50 1,050.00 45,375.00 1,830.00 2,100.00 38.50 247,100.00 2,650.00 90.00 103.00 51.64 70.00 55.00 25.00 60.00

340.00 48.00 44.93 30.00 32.00 125.00 65.00 270.43 383.11 495.78 292.96 901.42 229.16 1,509.88 1,355.81 325.91 83.92 277.55 610.64 129.17 148.22 366.00 249.20 97.26 100.37 114.87 57.59 78.07 55.00 27.88 66.91

6.25 (11.11) (18.31) (9.09) 3.23 4.17 (35.00) 1.69 6.25 4.76 0.00 11.11 12.50 25.64 29.41 23.87 5.83 16.67 0.00 1.67 (1.04) 0.00 24.67 6.00 5.88 21.18 17.36 (48.15) 0.00 0.00 0.00

SM = square meters

SF = square feet

P. 4

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HIGHLIGHTS | SPRING 2011 | RETAIL | GLOBAL

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

800

900

1000

1100

1200

1300

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

Fifth Avenue 2,150.00 Russell Street, Causeway Bay 1,509.88 Queen's Road, Central 1,355.81 Old Bond Street 961.85 Bahnhofstrasse 955.38 Via Monte Napoleone 943.39 Pitt Street Mall 901.42 Avenue des Champs-Élysées 872.63 Oxford Street 761.46 Rue du Rhône 756.24 Madison Avenue 708.00 Via Condotti 707.54 Tverskaya Street 688.67 Ginza-Chuo Street 610.64 Graben, Kohlmarkt, Kärntner Strasse 550.31 Kau ngerstrasse 518.86 Königstrasse 503.14 Bourke Street Mall 495.78 `King Fahad Road / Olaya Road 446.95 Rodeo Drive 425.00 Zeil 424.52 Grafton Street 422.95 Queen Street Mall 383.11 Königsallee 377.36 Spitalerstrasse 377.36 Orchard Road 366.00 Tauentzienstrasse 345.91 Union Square - Post Street 340.00 Nanjing Road West 325.91 Nevsky Prospekt 320.08 Østergade 316.19 Na Píkop 314.46 Vulitsya Khreshchatyk 303.46 Kalakaua Avenue 300.00 Kalverstraat 294.81 Hay Street and Murray Street Malls 292.96 Bloor Street 291.66 Ermou Street 283.02 Khan Market 277.55 Puerta del Sol Preciados 275.15 Rundle Mall 270.43 Aleksanterinkatu 267.29 Buchanan Street 256.49 North Michigan Avenue 250.00 Central District 249.20 Market Street 240.46 Karl Johans Gate 232.59 Mall at CWTC 229.16 High Street / New Street 224.43 Biblioteksgatan 219.78
· · ·

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

Copyright © 2011 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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