According to the "Q4 2013 Global Retail Rents" report recently released by CBRE, against the backdrop of prime retail rents in major global cities such as New York, Paris, and London continuing to hit record highs, Hong Kong remains firmly in the top spot as the world's most expensive retail rental market.
The latest quarterly rental ranking of 97 prime retail locations/markets worldwide shows that Hong Kong has retained its position as the world's most expensive retail rental market for two consecutive years, with an annual rent of $4,334 per square foot (1 square foot is approximately equal to 0.0929 square meters). New York ranked second with an annual rent of $3,300 per square foot. Following closely are Paris ($1,452 per square foot per year) and London ($1,356 per square foot per year).
The report indicates that competition among the world's top cities is becoming increasingly intense. A record low number of new development projects has led to a scarcity of prime retail space, while high-end retail brands remain willing to pay record-breaking prices to lease coveted prime locations. This supply-demand imbalance continues to drive retail rents higher.
