EHL Retail Properties Market Report 2024/25

Structural transformation for retail parks

Retail parks and retail park clusters (space at a single location without common management), which can be seen as the discounters among retail space providers due to their comparatively low square metre prices, are currently undergoing an accele- rated structural transformation: Providers from the furniture and home furnishings segment are losing market shares just the same as fashion and shoe businesses. In contrast, everyday consumer products like food and drugstore products have increa- sed their market shares. This structural transformation has also been accompanied by an increase in the vacancy rate. The latest data published by the market research company Standort+Markt show a vacancy rate of 7.7 per cent. That is nearly double the level from 2018 and 2022, but still lower than the 8.8 per cent vacancy rate in city locations.

The rents in retail parks are, on average, considerably more stable than in the higher priced segments, and a general decline is not in sight. Discounts are necessary, especially when the visitor frequency in the property is trending downward. The completion of additional space has declined significantly. This development is also a result of the growing resistance to ground sealing, which makes new permits very difficult to obtain. Investments are therefore focusing on quality improvements, with sustainability measures (e-charging stations, shading, solar equipment, the par- tial unsealing of parking areas, etc.) playing a particularly important role.

Austria | 2024/25

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