The segment of high retail streets in Europe does not seem to be affected by the global credit squeeze, Boris van Haare Heijmeijer, Cushman & Wakefield's head of shopping centres in Europe, said at the 2008’s edition of the international property exhibition MIPIM, held in Cannes, as reported by investor.bg.
High-profile commercial streets have maintained the costly rental levels, he added. The number of the interested investors has slid and yet, they still face a fierce competition.
Unlike the office segment, the main retail streets were less impacted by the credit crunch due to the shortage of high-quality products in this segment, Heijmeijer said. Developed European markets still command the best prices, according to Cushman &Wakefield.
“Currently, we are negotiating the acquisition of a small portfolio of units in Belgium, the Netherlands and Luxemburg, which is expected to deliver four per cent returns,” Heijmeijer said.
Central and Eastern European (CEE) region has high potential but it is risky, as well, there is a good number of unknown quantities. At the same time there are “exotic” locations, like Kiev, which are gaining momentum and will grow popular in the foreseeable future, because retailers are seeking new markets, he explained.
Presently, the propellers of commercial streets market are retail chains, which are constantly expanding their activities.
“If top retailers, like H&M and Zara want to secure their 15 per cent annual growth, they have to open some 400 to 500 new shops every year, which means that they have to grow geographically, venturing outside the conquered well-developed markets, going to less popular destinations in Europe and beyond,” Heijmeijer said.
Therefore, despite the fact that large European cities will keep on offering the best investment opportunities, there is a good potential on smaller markets, as well, according to Cushman & Wakefield consultancy.
