New York City Rents in prime U.S. shopping areas have climbed as much as 15% from the end of last year, likely heralding a broader recovery, according to the head of North American leasing at CB Richard Ellis Group, Bloomberg reported.
National retailers are driving up the cost of space on streets such as Rodeo Drive in Beverly Hills, Calif., and Michigan Avenue in Chicago, the report said. Rents in the most expensive U.S. districts have increased 10% to 15% from the last quarter of 2009.
Increases in the top areas are spurring a recovery in secondary shopping areas in such cities as Seattle and Miami, which signals that a rebound may spread next year to suburban markets.
On New York’s Fifth Avenue, the world’s most expensive shopping district, Japan’s Fast Retailing Co. set a record last month for a New York City retail lease. The company agreed to pay $20 million a year to rent a location near 53rd Street for its Uniqlo clothing store, Bloomberg reported.