L.A., S.F. Retail Rents Near the Top
California’s showcase shopping areas showed strong rent growth over the past year, trailing only New York for the title of having the country’s priciest real estate.
According to a recent rent study by Boston-based Colliers International, San Francisco’s Union Square and Beverly Hills’ Rodeo Drive moved up to second and third place, respectively, behind Manhattan.
Average rents in San Francisco’s Union Square neighborhood moved up to $485 per square foot, rising $10 over last year. Beverly Hills’ Rodeo Drive, with rents of $480 per square foot, moved past Kalakaua Avenue in Honolulu for third place. Rents on Rodeo Drive increased an average of $120 over last year, said Colliers. Despite the high numbers, they weren’t close to Fifth Avenue and other New York shopping meccas, where rents hit $1,350.
Other cities making the list included Chicago’s Michigan Avenue, with rents of $250 per square foot; Miami’s Lincoln Road Mall at $120 per square foot; and Walnut Street in Philadelphia, also at $120 per square foot.
Colliers’ researchers said these areas outpaced others because consumers who purchase luxury merchandise have been, for the most part, immune from economic effects. —Robert McAllister
