Hong Kong leads global retail rent rise
Los Angeles — Hong Kong is by far the world’s most expensive city for global retailers, but prime rents in New York City, London, Tokyo and Zurich are on the rise, according to research from CBRE Group, Inc.
CBRE’s second quarter 2013 ranking of the top 10 prime global retail markets saw little change relative to previous quarters; however, four of the top 10 markets — New York City, London, Zurich and Tokyo — saw quarterly increases in prime retail rents. Only one market saw a quarterly increase in the first quarter.
Low construction levels and fierce competition among retailers for the best locations fuel rental growth in these major cities.
Hong Kong topped the rankings by a substantial margin at $4,328 per square foot per annum. New York City ranked second with $3,050 per square foot per annum. Third place Paris came in at $1,220 per square foot per annum.
Despite the high rents, retailers continue to establish a presence in Hong King, seeking to benefit from the market’s growing luxury retail scene. CBRE found that 51 new retailers opened Hong Kong stores last year.
New York City’s prime retail rents rose 2.7% in the second quarter, signifying a 22% annual increase relative to last year. Demand from international retailers remains strong in New York City, and tourism continues to drive strong retail sales.
In London ($1,156 per square foot per annum), improving consumer confidence, robust sales and increased foot traffic have collectively fuelled tenant demand. In particular, the supply and demand imbalance on New Bond Street and Old Bond Street resulted in prime rents for Central London increasing by 9.1% quarter-over-quarter and 20% year-over-year as measured in local currency.
Preference for prime space continues to drive prime rents in Zurich ($896 per square foot per annum) where rents increased 2.2% quarter-over quarter and 5.6% year-over-year.
The tight supply of prime space, strengthening confidence and fierce competition for prime locations contributed to a 2.0% quarter-over-quarter local currency rental increase in Tokyo.
Finest Café & Marketplace to NYC financial district
New York — Finest Café & Marketplace has leased a storefront at 46 Trinity Place, between Edgar and Rector Streets in New York City’s financial district.
It will be the casual dining and take-out restaurant’s fifth Manhattan location. Faith Hope Consolo, chairman, Joseph A. Aquino, executive VP, and Arthur Maglio of Douglas Elliman’s Retail Group represented the landlord and tenant.
Toys’R’Us gets jump on holiday season
WAYNE, N.J. — It may be August, but Toys"R"Us is getting a jump on the holiday season. The retailer is expanding its price match guarantee on items available at its Toys"R"Us and Babies"R"Us stores nationwide to include selected online retailer pricing.
As part of this expansion, the company will match online pricing from Walmart.com, Target.com, BestBuy.com, Sears.com, Kmart.com, buybuyBaby.com, Meijer.com, FredMeyer.com, diapers.com, BabyDepot.com and Amazon.com (excluding Amazon Marketplace) on in-store purchases of identical items.
The company will also continue to match Toysrus.com and Babiesrus.com pricing in its stores, except in the instance of online-only prices.
"We know that Toys"R"Us is the preferred destination for parents when it comes to making their children’s holiday wishes come true, so we want to take away any concerns our customers might have about maximizing their budgets," said Richard Barry, EVP, chief merchandising officer, Toys"R"Us, Inc. "With online shopping growing rapidly, the addition of online competitors to our already strong price match guarantee enables consumers to take advantage of our vast assortment of toys and juvenile products, while being assured they are getting the best price."
Price match is given at the time of checkout. Customers also have the opportunity to receive a price adjustment retroactively at an "R"Us store if a purchased item is advertised at a lower price at a local competitor within seven days of their original purchase, as long as they have a valid receipt. The difference will be returned to the customer in the same form of payment in which the original purchase was made.
Prices are matched after deducting any Toys"R"Us coupons and all other offers from the price. In addition, shipping charges are calculated and factored into the cost of a competitor’s online price before a price match is completed.
Click here for other restrictions that apply.