Feed on

RentTHREE Australian cities – Melbourne, Sydney and Brisbane – are in the top 10 most expensive retail rental markets in the word, according to CB Richard Ellis’s latest global retail market view.

However, Sydney remains a favoured investment destination, the harbour city and Tokyo being voted the most popular cities for investment in Asia, says a new survey from Jones Lang LaSalle.

The CBRE report found Sydney had moved into second place globally – from third in the second quarter of the year – with the opening of Westfield Sydney, in the Pitt Street Mall.

Brisbane remained in ninth place, while Melbourne jumped from 12th to 10th, underpinned by strong tenant demand from retailers such as Zara, Gap, Esprit, Tag Heuer and Nespresso.

The CBRE report said prime retail rents in the world’s leading retail spots had stabilised, but rentals were on the rise in many areas as the economic recovery gathered momentum and consumer confidence started to improve.

On the investment front, the JLL report found Sydney and Tokyo were nominated by 48 per cent of investors. Overall, 76 per cent expected to be net buyers in the Asia-Pacific region in the next year.

Investor interest in Australia had been strong this year, said JLL’s managing director, investments and advisory in Australia, John Talbot. ”While Sydney has been popular, Melbourne also remains high on the list for offshore and domestic investors,” he said.

JLL’s director of international investments, Simon Storry, said cross-border investment in Australia had grown more than fivefold in the first half of the year, at $US1.8 billion compared with $US319 million in the first half of last year.

CBRE found that prime retail rents globally increased by 0.2 per cent between the second quarter and the third quarter of this year.

In the Pacific region, Josh Loudoun, CBRE’s regional director of retail services, said international and national retailers were moving to new and refurbished spaces in the CBD markets of Sydney, Melbourne and Brisbane.

”While this has underpinned rental increases for super prime space, in the current environment of rising interest rates and flat retail sales, we expect rents will stabilise over the next 12 to 18 months,” Mr Loudoun said.

The CBRE report found super prime rents in Sydney had risen as high as $13,560 a square metre, with rents starting at $6000 a square metre. Melbourne landlords were pocketing up to $6500 a square metre, while Brisbane commanded a top rental of $7845 a square metre.

Mr Loudoun linked Australia’s strong showing in the top 10 global rankings to the limited number of super prime retail outlets in the main CBD markets and recent developments such as Westfield Sydney, which had revitalised the city market and reinstated Pitt Street Mall as Australia’s leading shopping destination.

However, Mr Loudoun said, Melbourne and Brisbane had taken a lead on Sydney in extending their core city retail areas, with initiatives such as the partial closure of Melbourne’s Swanston Street to traffic and the extension of Brisbane’s Queen Street Mall. Much of the tenant demand had been driven by overseas retailers.

Globally, rents on a year-on-year basis grew in three of the biggest regions, with the Americas having the highest rental rise (6 per cent year-on-year), Asia following with a 4 per cent increase, and the Pacific with a 3 per cent increase.

By contrast, rents in Europe, the Middle East and Africa fell by 3 per cent year-on-year in the third quarter, largely due to the effects of the economic downturn in markets including Spain, Ireland and Greece.

However, some cities had recorded large yearly rental growth, with Edinburgh and London growing by 25 per cent and 20 per cent respectively compared with the same period last year. New York City continued to dominate as the world’s most expensive retail market.

Story by Philip Hopkins http://zincip.biz

Tags: commercial, leasing, news, property, real estate, rental, research

View the original article here

Share and Enjoy:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks

Leave a Reply