The arrival of international retailers like Gap on local shores is among the factors keeping Australian retail rents among the most expensive in the world.
Research by commercial real estate firm CB Richard Ellis (CBRE) has found Sydney is the third most expensive city in the world to rent retail space, with rent measuring US$1301 per square foot a year.
New York's Fifth Avenue is the world's most expensive high street, with retail rents measuring US$1900 per square foot a year.
Brisbane was a little further down the list measuring in as the eighth most expensive city, while Melbourne was number 10.
CBRE regional director of retail services Joshua Loudon said international retailers like Zara were expanding across the Asia Pacific.
“As a result, the cautious consumer story has not impacted on rents, as most key retail areas have either weathered the storm of subdued spending and cautious local retailer demand, or witnessed rental growth due to tight supply constraints,” Loudon said.
He added Sydney's capped retail space added to the city's high prices.
“The limited number of opportunities on Pitt Street Mall as opposed to much larger retail destinations such as Fifth Avenue in New York have kept pressure on super prime rents in Sydney, with significant demand and limited availability,” Loudon explained.
The Asia Pacific region as a whole experienced year on year rental growth of 11.1 per cent, in spite of the Christchurch earthquake, Queensland floods and Japanese tsunami.
By comparison, CBRE reported the Americas recorded 6.9 per cent year on year rental growth, while Europe, the Middle East and Africa saw year on year rental growth of just 0.5 per cent.
The top 20 global retail rental markets as ranked by CBRE were:
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New York
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Hong Kong
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Sydney
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London
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Zurich
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Tokyo
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Paris
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Brisbane
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Moscow
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Melbourne
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Guangzhou
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Los Angeles
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Milan
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Munich
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Chicago
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Singapore
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Rome
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Beijing
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Frankfurt
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Shanghai