Outlook
Top 7: Future trends on the retail market
From modern space to premium stores and flexible rental models: These seven trends provide a clear overview of the future for the Austrian retail market.
These seven most important medium- and long-term trends will influence the market for retail properties in Austria during the second half of the current decade:
the inner cities in popular destinations like Vienna, Graz, Salzburg and Innsbruck.
reduce vacancies, attract international businesses and create a more attractive shopping experience.
4. Stable top segment, weak secondary locations
7. More flexible rental agreements and usage concepts
1. Modernisation with no trade-offs
Major city centres, highly frequented shop- ping malls and trendy tourist locations can expect a continuation of the upward trend in demand. In contrast, secondary locations are faced with increasing pressure and, in part, are disappearing completely from the market.
Many commercial areas can no longer keep up with today’s requirements. Modern layouts for efficient use and technical upgrades – for example, stronger flooring for fitness centres – are essential in many cases to remain marketable over the long term.
Shorter contract terms are becoming more popular and the range of models is increasing: Scaled rents, space differenti- ation and turnover-based components are now much more important. This trend has been accompanied by the development of multi-functional zones that combine retail, services, co-working and events – while conventional shopping streets and malls are losing ground.
5. Stronger focus on convenience items and basic needs
2. Rising demand for reduced space
There is a growing demand for smaller to medium-sized selling space. Larger areas of 1,000 sqm or more are, in contrast, loosing their appeal – with the exception of the discount sector, which continues to focus on larger units.
The change in mobility behaviour and decline in competitive pressure from online retail have been reflected in a rising demand for supermarkets and convenience shops. Their share of the total demand for space will, as a result, continue to increase.
3. Premium/luxury and mono-brand stores
6. Pop-up stores and temporary uses
Short-term tenants have long since become much more than “gap fillers” for vacant space. The target-oriented management of pop-ups and temporary concepts can
High-status shops in the top segment are becoming increasingly important as a frequency anchor. The focus here is on
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Retail Market Report
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