YIELDS AHEAD

European retail properties deliver yields as low as 2.75 percent β€” in Dublin β€” and as high as 17 percent β€” in Moscow. Annual rents also vary greatly.

RETAIL RENTS AND YIELDS
City/Country Annual Rent (per square foot) Prime Yield
Athens, Greece $270.78 6.70%
Bergamo, Italy 51.07 7.00
Berlin, Germany 285.03 5.00
Birmingham, U.K. 601.19 4.00
Bristol, U.K. 351.47 4.75
Budapest, Hungary 156.77 6.00
Cardiff, U.K. 554.95 4.75
Copenhagen, Denmark 238.95 5.50
Dublin, Ireland 1068.88 2.75
Edinburgh, U.K. 388.46 4.25
Frankfurt, Germany 299.29 5.00
Genoa, Italy 40.38 7.00
Glasgow, U.K. 462.46 4.25
Helsinki, Finland 213.78
5.00
Leeds, U.K. 573.45 4.50
Lisbon, Portugal 64.13 8.50
London, U.K. 961.91 4.50
Manchester, U.K. 591.94 4.00
Milan, Italy 237.53 6.20
Moscow, Russia 190.02 17.00
Munich, Germany 334.91 4.80
Rome, Italy 154.39 6.30
Turin, Italy 27.32 6.00
Vienna, Austria 178.15 7.00
Warsaw, Poland 121.14 6.50
Source: GVA Worldwide

CONSTRUCTION SLOWING

Developers are taking a breather in building new projects. Retail construction starts were down 17.7 percent in November from the same period last year. But numbers vary greatly from market to market. Philadelphia, for example, is experiencing much more construction activity than a year ago.

IN THE PIPELINE
Region 3-month moving average change 3-month moving average year over year
U.S. -6.30% -15.40%
Atlanta 28.1 -25.1
Boston 24.8 -1.9
Chicago 5.1 32.5
Dallas 2.5 -6.7
Denver -6.3 -11.6
Detroit 4.6 33.6
Houston -11.2 19.1
Las Vegas 43.4 -72.4
Los Angeles -11.9 -33.5
Miami -16.1 -49.9
Minneapolis -47.6 1.7
Nassau-Suffolk, NY 30 258.6
New York -12.1 -74.5
No. California 52.6 7.8
No. New Jersey -12.1 -62.5
Orange Co., Calif. 38.9 -33.8
Orlando 19.6 3.2
Philadelphia 97.9 331.1
Phoenix -10.1 56.4
Riverside, Calif. -8.3 -23.2
San Diego -37.8 -61.8
Seattle -13.9 141.7
Washington, D.C. 16.3 21.4
Source: Citigroup Investment Research McGraw-Hill Construction and Economy.com

COME ON IN

India ranks atop A.T. Kearney's Global Retail Development Index for 2006. Five of the top 10 markets for retail development are in Eastern Europe.

2006 GLOBAL RETAIL DEVELOPMENT INDEX
2006 rank Country Region Country risk 25% Market attractiveness 25% Market saturation 30%
1 India Asia 55 34 89
2 Russia Eastern Europe 43 59 53
3 Vietnam Asia 43 24 87
4 Ukraine Eastern Europe 42 37 76
5 China Asia 58 40 57
6 Chile Americas 67 57 47
7 Latvia Eastern Europe 58 50 31
8 Slovenia Eastern Europe 78 52 25
9 Croatia Eastern Europe 57 51 28
10 Turkey Mediterranean 46 59 64
11 Tunisia Mediterranean 58 40 79
12 Thailand Asia 57 39 49
13 Korea, South Asia 68 73 35
14 Malaysia Asia 66 49 54
15 Macedonia Eastern Europe 32 32 75
16 United Arab Emirates Asia 78 67 33
17 Saudi Arabia Asia 53 46 67
18 Slovakia Eastern Europe 61 51 23
19 Mexico Americas 54 67 47
20 Egypt Mediterranean 45 35 81
21 Bulgaria Eastern Europe 48 37 52
22 Romania Eastern Europe 45 40 53
23 Hungary Eastern Europe 65 50 17
24 Taiwan Asia 83 69 32
25 Bosnia and Herzegovina Eastern Europe 31 18 71
26 Lithuania Eastern Europe 59 52 32
27 Brazil Americas 46 56 64
28 Morocco Mediterranean 45 31 76
29 Colombia Americas 39 42 65
30 Kazakhstan Asia 48 15 99
Source: A.T. Kearney