Focus on the provincial capitals
Provincial capitals: Moderate development with no consistent trends
Bregenz
The retail landscape in Austria’s provincial capi- tals is characterised by different developments without any clear trends. The spectrum currently ranges from stable markets with low vacancy rates to challenges caused by declining visitor frequency and high vacancies.
Innsbruck
Developments on the retail markets in the larger Austrian provincial capitals were unspectacular in 2023 and the first half of 2024. In comparison with Vienna as a much larger destination, international players are less important and the stronger local or regionally oriented
Miio, Douglas Sehen Wutscher, Falconeri, Juliana Nails and Arthur Gelato. Another positive factor is the stabilisation of the fashion branch after the dramatic space reduction in 2023 with the first plus (1.3 per cent) in many years.
outlook. Previous efforts to revive the inner city have not brought any successful results to date, and visitor frequency is weakening. Only when the turnaround is successful can this retail location expect to see an upturn. In Linz, the city centre does not have the same dominant influence on the retail trade as in other provincial capitals. Large shopping centres and retail park clusters in the surrounding area or on the periphery have an above-average market share. The vacancy rate in the inner city is satisfac- tory at 4.1 per cent, but only the central shopping axis on the Landstrasse between the Main Square and Goethekreuzung can demonstrate sound momentum. Hopes of a recovery in the southern section between the Goethekreuzung and Music Theatre/ Railway Station are dependent on a multi-million Euro urban development programme to increase the attractiveness of the area.
tenants traditionally serve as a stabilising element in a difficult market environment. There are hardly any uniform trends, and local factors dominate the market activity.
Graz has seen above-average development. The Styrian capital has a very low vacan- cy rate and below-average turnover.
Graz has seen above-average development. The Styrian capital
has the largest inner city retail cluster after Vienna and can demonstrate a very low vacancy rate and below-average turnover. Demand is particularly strong for top locations like the Herrengasse, Sporstrasse and Jakomini Square. Recent new entries include, among others, Mei Shi, Motel a
The situation in the second provincial capital in the south, the much smaller Kla- genfurt, is much more difficult. The vacancy rate is more than twice as high, the rent level in secondary locations is continuing to decline, and more closings, especially in the fashion branch, are straining the overall
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