According to the report, demand for retail space has declined across the world as consumers cut back on spending and unemployment continued to rise in many countries.
Emerging and less established markets have been most significantly affected. Buenos Aires saw the largest annual decline in retail rents YoY with a drop of 37 per cent, followed by Warsaw with a 33 per cent decline and Washington DC with a 26 per cent fall.
The CB Richard Ellis report said despite a 10 per cent year-on-year rental decline, New York remained the world's most expensive retail destination, with rates averaging $1,800 per sq ft pa. Hong Kong followed with $975. Delhi was 69th on the list.
According to Richard Ellis retailers feel rentals have corrected to sustainable levels and are being renegotiated to make retail operations financially viable. Another trend that has been witnessed during this time is of developers adopting a renewed stance towards revenue share agreements, as opposed to earlier, when the demand situation was more favourable, according to the report in ET
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