Colliers International Media Release, 2008-06-03
by Phoebe Miller
Sydney, NSW, Australia
Brisbane has recorded the most expensive average rental range for high street retail strips in Australia, and the third most expensive in Asia Pacific, according to Colliers International’s Global Retail Survey released this week.
Queen St Mall was ranked #14 on the list of most expensive “premier fashion retail corridors” with an average rental rate of US$509.99/ square foot (sf) just behind LA’s Rodeo Drive on US$540.00/ sf.
Colliers International’s Director for Commercial Research Felice Spark said research found retail rents in Queen St Mall typically range from AU$4,000/sqm up to $8,000/sqm.
“Anecdotal evidence suggests even higher rates per square metre are being achieved for small tenancies in prime locations,” said Ms Spark.
“What the findings show is that, at the upper end of the scale, Brisbane retail is achieving higher spikes than its southern counterparts for a few prime spots.
“This has driven the overall average up in Brisbane.”
Rents for Sydney’s Pitt St/ Castlereagh St and Melbourne’s Bourke St/ Collins St tied for 20th place with an average rental rate of US$446.24/ square foot.
In local dollars and measurements, Colliers International’s research found rents on Pitt St range from AU$4,500-$6,000/ sqm while Castlereagh rents range from AU$3,200-$4,500/sqm. The range on Melbourne’s Bourke St mall was between AU$4,500-$6,000/sqm and on Collins St AU$2,500-$4,000/sqm.
New York ranked number one with Fifth Avenue increasing by $300/sf to register $1,650/sf, followed by Paris’ Champs Elysees at $1,468.20/sf and Moscow’s Tverskaya at $1,467.61/sf.
Perth’s Hay and Murray St Malls came in at number 36th most expensive at $276.24/sf (equarting to AU$2,000-$4,500/sqm) while Rundle Mall in Adelaide recorded an average rent of $191.25 ($1,500-$3,000/sqm), ranking 47th in the global survey.
Ms Spark said although the global economy is anticipated to decelerate in 2008, the survey found demand for premier streetfront retail space remains in high demand in almost every region of the world.
“High-end fashion retailers in particular continue to stake out high profile, high traffic locations in an attempt to better position their brands,” said Ms Spark.
“Supply continues to be limited and the rising prosperity in many developing countries and the emergence of the middle class in Asia Pacific, the Middle East, and Central and Eastern Europe, is prompting many to expand into these relatively new markets.”
The research found rents, as a result, are expected to continue rising in both the short and medium-term, with countries of note to watch including China, India, United Arab Emirates, Russia, and Brazil.
New York’s Fifth Avenue and LA’s Rodeo Drive were the only two streets to post a substantial increase in the US.
Colliers International’s National Director – Retail Nathan Clark said the results proved Australia was a major player in the global retail market.
“We are already talking to a number of major international retailers positioning themselves to enter the Australian market,” said Mr Clark.
“These results prove that international retailers would be smart to make their move now before the competition gets any hotter.”
Mr Clark highlighted the wide playing effect of the resources boom on the retail market.
“To see Brisbane jump ahead is testament to the effect a strong local economy and booming office market can have on a retail market,” said Mr Clark.
“It’s only natural that retailers should want to capitalise on the growing white collar workforce in Brisbane’s CBD.”
Click here to view a full copy of the Colliers International Global Retail Highlights Survey.
About Colliers International
Colliers International is a global affiliation of independently owned commercial real estate firms. The organization's 10,092 employees span the world in 267 offices in 57 countries. On a worldwide basis, Colliers manages 672,945,918 square feet, and has revenue of $US 1,620,958,349.
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