Retail Market Report Austria | 2023/24

NEU

Vienna | Mariahilfer Strasse Department store 2.0: A classic con- cept in a new design – The “Lamarr“ One big construction site

The Mariahilfer Strasse inside the beltway, with a length of roughly 1.8 km and nearly 125,000 sqm of retail space (approximately 212,000 sqm together with the side streets), is by far the country’s most important shopping street and is currently – and has been for some time – one big construction site. In addition to the many normal refurbishment projects, there is the new cons- truction of the Lamarr at the site of the former Leiner furniture store and, above all, the lengthy preparations for the future U2/U3 underground hub in the Neubaugasse. These construction projects create important perspectives for the Mariahilfer Strasse but are currently a major obstacle for local retailers and especially for new rentals. For this and other reasons, the vacancy rate on the Mariahilfer-Stras- se has risen to a record 4.1 per cent. Even very interested retailers and gastronomy concepts are postponing their decisions until the end of const- ruction in order to start under optimal conditions. This long wait should end soon as surface const- ruction is expected to be completed this year. Most of the vacant space has, fortunately, been directed to other uses. For example: In 2023/24 mömax will move into the former location of Benetton’s flagship store, CINNAMOOD into the

The future “Lamarr“ department store at Maria- hilfer Strasse 10-18, the location of the former Leiner furniture store, is currently a source of considerable construction noise and clusters of curious pedestrians, but has already come to play a key (positive) role in planning by expansion managers: “Close to the Lamarr“ has become an important decision criterion and will soon be the new top address on the Mariahilfer Strasse. These high expectations are based on the depart- ment store‘s clear positioning in the high price to luxury segment which, combined with an eye- catching roof landscape, superior gastronomy and an integrated hotel, will again attract a particularly affluent public to the Mariahilfer Strasse. This pro- vides a real opportunity to establish a second top location in addition to the prime addresses in the Inner City that could be interesting for top labels (e.g. for secondary brands) when they are looking for lower cost alternatives to the Golden U. Numerous retailers from the upper price segment have already shown an interest in the surroun- ding areas. For example: EHL, among others, is brokering roughly 1,000 sqm of space suitable for a flagship store in the same building complex as the Lamarr.