Retail district rents lower

Storefront rents in most of the world's priciestretail districts declined for a second consecutive 12-month period ending this spring, although signs suggested a rebound could be coming.

According to a survey by real estate consultants Colliers International, the Champs lyses in Paris is the most expensive retail district in the world, withspace going for an average of $1,255.90 US per square foot for a one-year lease, an increase over one year of 2.04 per cent.

But New York's Fifth Avenue saw rents drop by 10.71 per cent, with space now going for $1,250.

"Two sub-categories worth mention are financial centres, which are still sluggish but not to the same extent as a year ago, and tourism-dependent cities, which were more mixed but generally up relative to last year," Ross Moore, chief economist with Colliers USA, said in a statement.

"With many of the world's rich feeling more secure and comfortable with luxury purchases, demand for high-end retail premises is expected to increase over the coming year."

Russell Street in Hong Kong took third place, with an average rentof $1,205.46, which was up 1.3 per cent from the same period a year before.

Montreal's Saint Catherine Street and Toronto's Bloor Street were Canada's most expensive strips, with average lease rates of $300Cdn. a square foot.

Montreal's rates were unchanged, but Toronto's rose 7.14 per cent from the same period a year earlier.