Retail giants think with global perspective.

The soft American dollar and New York City's ongoing economic recovery have combined to attract a new generation of European retailers to Manhattan's hottest retail districts. Most notably, the SoHo District has emerged as the next rising star.

And just as SoHo is becoming a New York hotspot on the western side of the Atlantic, Prague and Budapest are enjoying@ tremendous growth as retail capitals on mainland Europe with the arrival of U.S. retailers.

But this is just a snapshot of the current international retail real estate market. Over time, the Big Picture of retail leasing reveals a cyclical ebb and flow of serious international players from the U.S. into Europe and vice-versa from Europe into New York City.

Putting this into perspective, in the early 1980s, many European retailers expanded their horizons by investing in new stores in Manhattan. Then, the late 1980s witnessed a massive expedition of U.S. retailers into London and Paris.

Now, the European retailers are back on Madison Avenue. The avenue, which languished catastrophically in the early 1990s, is regaining its pre-eminence with a steady influx of European retailers into high-end store locations.

And, as I mentioned, SoHo's Prince Street and West Broadway are re-awakening with amazing economic viability. Soho has taken a positively Madison Avenue look.,, If one could travel back in time to the ultra-prosperous mid-eighties, then fast-forward to 1995, the Madison Avenue streetscape of the go-go mid-eighties would be almost undistinguishable from next year,s Soho retail scene.

Likewise, European owners are attracting U.S.-based retailers. As the U.S. economy works out the last kinks in its recovery, domestic landlords are still insisting on a strong signature,, on their leases. This disincentive, coupled with some other lingering after-effects of the recession, have forced U.S. retailers to explore the myriad attractions of Prague and Budapest.

Jumping across the pond to Europe, our firm is engaged in an intensive retail initiative in the Czech Republic. As The New York Times confirmed for us earlier this year, this heavily industrialized country boasts low unemployment and a balanced budget, even as it takes on the task of transforming itself to a capitalist economy. The Czech Republic's cohesive and well-educated population of 10 million has the added geographic advantage of being next door to Germany.

Likewise, Budapest is booming. Wrangler Jeans and Fruit of the Loom tee shirts have a new home in Eastern Europe at Metro, the two new hot "club-style" stores that recently opened in Budapest. Former Communist-bloc countries are infatuated with the American concept of the "price-club" where consumers can purchase large quantities of goods at discount prices. According to published reports, it won't be long before Eastern European consumers will be stacking a case of frozen pizzas in heir hopping cart on top of a set of snow tires.

Another phenomenon is the Cross-Europe" expansion of European-based retailers throughout the Common Market. Citing Bloomberg Business News, for example, Spanish women still fly to London to do their Christmas shopping. But certain famous brands no longer are on their lists because they can find London-based brands such as Marks & Spencer PLC underwear in Spain.

Four and a half years ago, Marks & Spencer didn't have a store anywhere in Spain. Now it has four and is opening a fifth in Valencia.

If the name sounds familiar, Marks & Spencer has some 600 stores world-wide, some under different names, such as Brooks Brothers.

Interestingly, Berlin is currently in the throes of exorcising World War Il demons. According to Newsweek, the city cannot decide how to rebuild itself physically. Entire urban districts are under evaluation regarding which buildings - or entire retail streets - should be targeted for economic revitalization, or razing.

Two years ago, Garrick-Aug Worldwide advanced the concept of trans-Atlantic retailing by entering into a joint venture with Brockhoff & Zadelhoff Immobilien GmbH of Essen, Berlin and Frankfurt, Germany's foremost retailing brokerage.

The essential purpose of the venture is to give expansion-minded retailers in the U.S. and in Germany the most complete and the most expert assistance in the "where and how,, of their expansion.

The joint venture followed the establishment of Garrick-Aug Worldwide's office in Paris, where retail leases were arranged on behalf of Paloma Picasso Designer Showcase, Joan A David, Michel Perry shoes and accessories, and Zara International.

In conclusion, major retailers are thinking on a global scale. real estate professionals must keep this in mind. The ideal tenant for any given available store, literally, may be the just across the street - or across the Atlantic.