Retail rentals: New York breaks all records

If you are an international retailer who looks for the best locations between the Atlantic and the Black Sea, you should keep one thing in mind: the rental level in New York is about 10 times higher than in Bucharest.

The most expensive high-end rental rates in Europe`s retail sector can be found in Paris (600 euro per sqm). London`s and Rome`s rates in the same category lie at about 550 euro per sqm. Much moderater prices can be found in cities like Vienna (about 390 euro per sqm), Amsterdam (about 190 euro per sqm) or Brussels (about 135 euro per sqm). On an international scale New York is the most expensive city when talking about high-end rental rates in the retail sector – retailers have to pay about 1 000 euro per sqm for good locations.

Rental rates fell back especially in Eastern European cities. Thus the highest rental rates in Budapest lies at about 120 euro per sqm in the moment, in Bucharest at about 90 euro per sqm and in Prague at about 85 euro per sqm.

Top locations are generally not so much influenced by the crisis as peripheral positions are. But prices even in top locations can fall especially in those cities, where location quality changes rapidly. Thus highend rental rates can change very fast in Eastern European cities simultaneously with the increase of modern shopping center areas.