European retail rental prices continue to soar | RetailDetail

European retail rental prices continue to soar

European retail rental prices continue to soar
Shutterstock

A recent study from research firm CBRE shows that rental prices for Europe’s most expensive retail locations are still on the rise. It is the only region that still experiences growth for retail real estate.

New York is number one

European rental prices grew 4.3 % on average in the past year, with slumps in every other region. New York is still the world’s most expensive location, followed by London and Hong Kong. Paris is fourth and only the second European location in the top ten.

 

On average, one needs to pay 3,240 dollars (2,815 euro) per square meter in New York, an enormous lead on London, where one ‘only’ pays 1,523 euro per square meter. In Paris, the number is 1,142 euro per square meter.

 

CBRE believes European prices are on the rise because of higher demand and low availability. The improved European economy also helps a lot, increasing a retailer’s willingness to pay higher prices.

 

Strong surge in London

The largest increases were located in London (+ 39.1 %), Saint Petersburg (+ 15.4 %) and Australian Auckland (+ 12.5 %). New York (- 19 %), Istanbul (- 13.6 %) and Hong Kong (- 8.3 %) were on the other end of the scale.

 

It was revealed earlier that week that the Meir (in Antwerp, Belgium) charges 1,950 euro per square meter on average, replacing the Nieuwstraat (in Brussels) for the very first time.

 

Looking at the Netherlands, Amsterdam is ranked first, with about 3,000 euro per square meter in the Kalverstraat, up 3 %. Rental prices in Rotterdam are considerably lower, at 1,600 euro per square meter on average, but it did experience a 6 % increase over the past year.

Questions or comments? Please feel free to contact the editors


Gerelateerde items

Vastned gains from focus on top locations

02/08/2018

Dutch retail real estate fund Vastned has posted a rise in like-for-like gross rental and aims to continue its focus on top locations in city centres, but warns that real estate prices are increasing heavily in those places.

Fewer visitors in Belgian shopping centres

01/08/2018

In the second quarter of 2018, the members of the Belgian Luxembourg Council of Retail and Shopping Centers (BLSC) registered a 1.82 % drop in visitors compared to the same quarter in 2017.

"Shopping centres of the future will be hyperconnected microcities"

20/06/2018

In celebration of the tenth anniversary of its London shopping centre, Westfield has released its strategy 'Destination 2028', containing delivery drones, smart toilets, sensory gardens and silent rooms for contemplation.

Rive Gauche sold to CBRE Global Investors after excellent year

27/03/2018

Charleroi’s shopping center Rive Gauche has done very well last year and will now get a new owner. It attracted 650,000 visitors a month last year, becoming the second most popular shopping center in Belgium.

Canadian owner for Dockx Bruxsel shopping center

27/03/2018

Canadian investor, Alberta Investment Management Corporation, paid about 300 million euro for Docks Bruxsel, a shopping center in Brussels. Developer Equilis had been looking for a buyer as soon as it completed the project in 2016.

Mitiska Reim acquires third German retail park

26/03/2018

Six months after entering the German market, Mitiska Reim is announcing the acquisition of a third German retail park. The Belgian retail investor has partnered with Zamberk Real Estate Ventures to renovate and manage a retail park in Braunschweig.