In November 2103, Cushman and Wakefield, the world’s largest privately held commercial real estate company, released its study, ”Main Streets across the World – 2013/14”. This report examines the costs of rents in the top 334 shopping areas in the world.
Bogota ranked as having some of the most expensive retails rents worldwide. Hong Kong, New York, Paris, London and Tokyo were the top five place holders with Bogota holding the 21st spot, just ahead of Toronto.
The most expensive retail rent in Bogota listed was $318.00 USD per square ft. This is of course a bargain if you compare it to the highest in Hong Kong at $3,017 USD per square ft.
Of the top ten most expensive shopping areas in the Americas, Centro Andino Mall has the tenth highest rents at $318.00 USD per square ft. It is led by NY – 5th Avenue, Times Square, E 57th St, Madison Ave. LA – Rodeo Drive, Chicago – North Michigan Ave., San Francisco – Union Square, Sao Paulo – Iguatemi Shopping Centre and San Francisco – Post Street.
Luxury retailers in Bogota can be mainly found in Andino Mall, El Retiro Mall, Gran Estacion II Mall, Santa Fe Mall, Unicentro Mall, and Zona T. Foreign brands include LouisVuitton ,Tommy Hilfiger, and Versace. Colombia also has created its own in country luxury brands as well. In Medellin, Oviedo Mall, El Tesoro Mall and Santa Fe Mall are three of the top retail locations.
There is more need for shopping centre space as numerous retailers are waiting to enter the marketplace. This lack of space has help drive up the price of retail space. Rents are expected to climb in the near future.
The lack of space in the retail malls is leading retailers to consider leasing spaces in adjacent areas. These spaces can be significantly cheaper and have less competition. If this trend continues, there may be the development of high end retail clusters that in turn will allow new players into the marketplace.
Both photos in this article carry Wikimedia Commons licenses.