ISPT's Queen St Mall reigns over rents

KA-CHING! Brisbane's Queens St Mall is rolling in big bucks for Industry Superannuation Property Trust, having trumped Sydney and Melbourne to claim the most expensive retail rents in Australia.

A Colliers International’s Global Retail Survey also found Queen St Mall was ranked third in Asia Pacific, behind Hong Kong and Tokyo, and 14^th in the world with an average rental rate of $US509.99 per sq ft just behind LA’s Rodeo Drive on $US540.00 per sq ft.

Colliers International’s director for Commercial Research Felice Spark said retail rents in Queen St Mall typically range from $AU4,000 per sqm up to $8,000 per sqm.

Compared to Sydney’s Pitt and Castlereagh St, where rents range from $AU4,500-$6,000 per sqm and from $AU3,200-$4,500 per sqm, respectively.

Rents in Melbourne’s Bourke St mall was between $AU4,500-$6,000 per sqm and on Collins St $AU2,500-$4,000 per sqm.

Rents for Sydney’s Pitt/Castlereagh St and Melbourne’s Bourke/Collins St tied for 20^th place with an average rental rate of $US446.24 per sq ft.

SURVEY RESULTS

Asia Pacific Retail Rents

Spark said anecdotal evidence suggests even higher rates per square metre are being achieved for small tenancies in prime locations.

“What the findings show is that, at the upper end of the scale, Brisbane retail is achieving higher spikes than its southern counterparts for a few prime spots.

“This has driven the overall average up in Brisbane,” she added.

In other capital cities, Perth’s Hay and Murray St Malls came in at number 36^th most expensive at $276.24/sq ft (equating to $AU2,000-$4,500 per sqm) while Rundle Mall in Adelaide recorded an average rent of $191.25 ($1,500-$3,000 per sqm), ranking 47^th in the global survey.

Spark said although the global economy is anticipated to decelerate in 2008, the survey found demand for premier streetfront retail space remains in high demand in almost every region of the world.

“High-end fashion retailers in particular continue to stake out high profile, high traffic locations in an attempt to better position their brands,” Spark said. “Supply continues to be limited and the rising prosperity in many developing countries and the emergence of the middle class in Asia Pacific, the Middle East, and Central and Eastern Europe, is prompting many to expand into these relatively new markets,”

Colliers International’s national director of retail Nathan Clark said the results proved Australia was a major player in the global retail market.

“These results prove that international retailers would be smart to make their move now before the competition gets any hotter. To see Brisbane jump ahead is testament to the effect a strong local economy and booming office market can have on a retail market,” Clark said.

Globally, New York ranked number one with Fifth Avenue increasing by $300/sq ft to register $1,650/sq ft, followed by Paris’ Champs Elysees at $1,468.20/sq ft and Moscow’s Tverskaya at $1,467.61/sq ft.

The research found rents, as a result, are expected to continue rising in both the short and medium-term, with countries of note to watch including China, India, United Arab Emirates, Russia, and Brazil.

New York’s Fifth Avenue and LA’s Rodeo Drive were the only two streets to post a substantial increase in the US.

Australian Property Journal