The Retail Market in Vienna
Dynamic changes on Vienna’s high streets
After a period of relative inactivity, there is a clear, renewed demand for retail space that will benefit prime locations as well as less popular areas. Discounters and the luxury segment are again searching for space, while shorter leases and strategic adaptations are influencing the market.
After a weak 12 months in 2023 and a weak first quarter in 2014, the interest in retail space in Vienna gained substantial momentum starting in the second quarter of 2024. This demand was driven by the gradual decline in inflation and a related easing in the pace of index adjustments and operating costs. It is also interesting to note that this trend is not only visible at top locations in the city centre
This rising demand is, however, contrasted by an above-average supply of vacant retail space. It is partly the result of numerous bankruptcies and business closings – but also reflects the changing demands of tenants for their branch locations, e.g. for an increase or reduction in space. In most branches, especially fashion and shoes, the space requirements per outlet
course, whereby Woolworth is planning 30 new locations by the end of this year.
The new strategic focal points of major retailers are adding to the pressure for ch- ange: Their efforts to adapt to the current economic environment are reflected in the new, often also cost-intensive redesign of outlets and frequently connected with the optimisation of branch sizes and locations. The large number of expiring leases com- bined with rising demand by new tenants has resulted in a great deal of movement on Vienna’s high streets and – to a lesser extent – in the shopping centres. This will become an accepted fact over the longer term because of the clear trend towards shorter lease terms. New tenants are generally looking for commitments of three to five years, and the previously standard terms preferred by lessors – seven to ten years – have now become the exception. Safety is the key The differences in preferred contract periods are, however, only one aspect of the fundamental change in practices for
In addition to chains that are already established in Austria, new international concepts are in- creasingly looking for possibilities to enter this attractive European market.
or Mariahilfer Strasse. Less noticed areas like the Alserstrasse, Neubau- gasse, Währinger Strasse, Taborstrasse and Prater- strasse are also enjoying growing popularity.
Additional demand is coming, above all, from the
discount and luxury segments. In addition to chains that have already established a foothold in Austria, new international concepts are increasingly looking for pos- sibilities to enter this attractive European market.
are gradually declining. Discounters are fol- lowing a contrary trend and planning larger outlets than in previous years. One example is the rapidly expanding Action chain, which is urgently looking for locations with 700 to 1,000 sqm of pure selling space. TEDi and Woolworth are also on a major expansion
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Retail Market Report
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