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Global Retail MarketView (Q1 2012)

Prime Space in Short Supply

Overview

  • The CBRE global basket of prime retail rents increased by 0.8% over Q1 2012. The Americas led the way with growth of 3.4% quarter-over-quarter, largely due to strong growth in a handful of cities, followed by Asia Pacific, which recorded modest growth of 0.5%. EMEA experienced rental declines in a few markets and averaged a quarterly decline of -0.2%. On the year, however, rental growth is still positive across all regions, contributing to an annual growth rate of 2.9% for the basket as a whole.
  • Overall, consumers maintained a cautious approach to spending in the first quarter due to the uncertain economic climate, particularly in Europe, although sales figures in Q1 2012 displayed an improvement on the previous quarter. Consumers in North America seem encouraged by the recent progress of the U.S. economy and have further increased consumer spending. Retail sales in Asia remained positive and benefited from a strong festive period.
  • Occupier demand for prime space has been relatively steady across the globe. Asia Pacific has experienced strong interest from international, fast-fashion retailers and even more so from the luxury sector, whilst EMEA continues to be a target for American brands. In the U.S., despite pockets of significant demand in markets such as Washington DC, Miami and Seattle, occupier demand on the whole has been weakened recently by a significant number of store closures, with retailers focusing on revamping their existing space rather than expanding their store networks. In contrast, Latin America has seen healthy interest from international retailers attracted by the dynamic, economic growth that these markets promise.
  • Retailers seeking to grow their businesses in emerging markets are benefiting from a raft of new, high quality shopping centres. In spite of this, occupier demand for prime space continues to outstrip supply in most markets – even in China – the most active shopping centre development market.

Downlo​ad the​ Global Retail MarketView​​​​​ (Q1 2012)​​​

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