According to CBRE Group Inc.'s quarterly survey of the global retail commercial real estate markets, Hong Kong continued to rank as the world's most expensive market during the first quarter of 2013, with the prime rental rate averaging $4,328 per square foot per year.
CBRE says Hong Kong is in ‘a rental class distinctly above its global peers.’ Its rental rate is 150% higher than the runner-up, New York, and more than 400% higher than the rate found in London and Paris.
‘Prime rents in Hong Kong stand at record highs as tenant demand is steady and inquiries from retailers looking to enter or increase their footprint in the city remain strong,’ says Joe Lin, executive director of retail, Hong Kong, for CBRE.
New York City ($2,970/sq. ft.) welcomed several new national and global retailers in 2012 that were attracted by the market's strong international tourism features. However, a significant amount of prime space is available along Fifth Avenue between 49th and 59th Street. Europe's prime retail markets of London ($1,053/sq. ft.) and Paris ($1,050/sq. ft.) are holding steady, largely due to scarcity of supply and correspondingly high rent levels.
The tight supply of prime space throughout the Asia Pacific region helped maintain rent levels in Sydney, Melbourne, Beijing and Tokyo, CBRE adds.