Hong Kong has most expensive retail rent

Rents in Hong Kong surged 19% in 1Q12, says CBRE.

CBRE Group Inc. said retail rents in Hong Kong jumped 19% in the first quarter of this year compared to the same period in 2011 to $3,864 per square foot per year. Rents in New York rose 15% to $2,475.

In Hong Kong, average retail rents have risen for seven of the past eight years on the rapid expansion of fashion and luxury brands targeting affluent Chinese.

“This quarter has seen more positive aspects than the last, with improved consumer spending as well as steady occupier demand and new shopping centers,” said Ray Torto, global chief economist at CBRE.

He noted that despite concerns over the Eurozone and a skidding world economy, retailer demand for prime space in major cities remains strong. Prime space is in short supply in many markets.

Total retail rents across all regions rose 0.8% in the first three months of 2012 from the previous quarter, CBRE said. The Americas were on top with growth of 3.4% with the Asia-Pacific region rising 0.5%. Average prime rents in Europe, the Middle East and Africa fell 0.2% during the quarter.