Retail district rents lower

Storefront rents in most of the world's priciest retail districts declined for a second consecutive 12-month period ending this spring, although signs suggested a rebound could be coming.

Storefront rents in most of the world's priciest retail districts declined for a second consecutive 12-month period ending this spring, although signs suggested a rebound could be coming.

According to a survey by real estate consultants Colliers International, the Champs Élysées in Paris is the most expensive retail district in the world, with space going for an average of $1,255.90 US per square foot for a one-year lease, an increase over one year of 2.04 per cent.

Visitors walk between planted fields on May 24 after young French farmers transformed the Champs Elysees in Paris into a vast garden of flowers, herbs and crops. Store-front lease rates on the Champs Élysées are the most expensive in the world at $1,255.90 US per square foot on average. ((Bob Edme/Associated Press))

But New York's Fifth Avenue saw rents drop by 10.71 per cent, with space now going for $1,250.

                                                                      

Canadian premier retail rents (last 12 months)

CityStreetRate ($Cdn, sq. foot)Change from year earlier
Montreal

Ste-Catherine Street 

300 Unchanged 
TorontoBloor Street300 +7.14% 
VancouverRobson Street200 -16.67% 
Calgary17 Avenue S.W.75-25% 
VictoriaGovernment Street58-10.77%
HalifaxSpring Garden Road 50 +5.26% 
OttawaByward Market 50Unchanged 
EdmontonDowntown Edmonton45Unchanged
Saskatoon21st Street E. 28Unchanged 
(Source: Colliers International)

"Two sub-categories worth mention are financial centres, which are still sluggish but not to the same extent as a year ago, and tourism-dependent cities, which were more mixed but generally up relative to last year," Ross Moore, chief economist with Colliers USA, said in a statement.

"With many of the world's rich feeling more secure and comfortable with luxury purchases, demand for high-end retail premises is expected to increase over the coming year."

Russell Street in Hong Kong took third place, with an average rent of $1,205.46, which was up 1.3 per cent from the same period a year before.

Montreal's Saint Catherine Street and Toronto's Bloor Street were Canada's most expensive strips, with average lease rates of $300 Cdn. a square foot.

Montreal's rates were unchanged, but Toronto's rose 7.14 per cent from the same period a year earlier.