Colliers International – Global CBD Parking Rates Survey 2009

Global Downturn Pushing Premier Retail Rents Lower

After a string of upward moves, premier streetfront rents in almost every region of the world moved
decidedly lower during the past 12 months. As the global recession reduced demand for some of the world’s most prime real estate, rents came down by double digits and in some cases by half in many markets.

Some of the declines were due to the effects of a generally stronger dollar (vis-à-vis) a year ago, but even accounting for the effects of movements in local currency, rents are down by a significant amount
particularly in late 2008 and early 2009. Even though most of the world’s prime fashion corridors have
little or no local competition, high-end luxury retailers had little appetite for new stores and in some cases retrenched from marginal locations. Financial centers were most affected, but other tourism dependent cities were also impacted.With many of the world’s rich feeling the effects of lower equity values and sizable investment losses, and for those dependent on year-end bonuses, luxury retail items were one of the first to go.

source : Colliers