Demand for European retail property has been rising steadily over recent years. During the first nine months of 2015, this segment received investments totalling €51.5 billion, which is 59% more than the same period in 2014 according to Cushman & Wakefield. Germany is the most popular market: investments were 90% higher than in 2014, breaking all the records since the 2008 crisis.
Property types
The minimum investment threshold for
High street retail: the main liquidity
indicator for these properties is location. Premises situated
in popular shopping streets with intensive pedestrian traffic
that have an attractive exterior and are conveniently designed
for customers (e.g., brightly and
Supermarkets: the best locations are
in residential districts of cities with growing populations.
They should be situated near public transport links and main roads.
This is one of the most popular investment formats for
international investors. The advantages include ease of management,
low risk and relatively high yields (i.e.,
Shopping centres: pay attention to the spending
capacity in the region, surrounding infrastructure and
transport access to the premises. Recommended tenants include food
retailers, consumer electronics, soft goods stores (e.g., clothing
brands), cafés, recreational centres and cinemas. This type
of investment is challenging to manage due to a large amount
of tenants and should only be considered by professional real
estate investors. Lease agreements are usually signed for
Retail warehousing property: it's better to
choose warehouses located near major transport arteries (e.g.,
motorways). This type of property comes with high yields (i.e.,
To see this article in full, please click here
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.