role but large retail parks and clusters – for ex- ample in Webling, Puntigam and Andritz or directly adjoining the shopping centre in Seiersberg – also hold strong market positions. From a transregional perspective, the strength of the inner city retail cluster is remarkable. The Graz City with its 167,000 square metres is the number two in Austria after Vienna’s Inner City. Other indi- cators – like the number of shops (925) and street length (7.5 kilometres) – also rank Graz second with a clear lead over the other provincial capitals. The prime locations extend along the foot of the Schlossberg around the main plaza, Herrengasse and the well-known Kastner & Öhler department store in the Sackstrasse. The border to the south is formed by Jakomini Square (a secondary location), and the commercial area continues with Südtiroler Square (a secondary location) and the Annenstrasse (a tertiary location) to the west of the Mur River. The Annenstrasse, in particular, is undergoing a structural transformation and has lost some of its attractiveness as a shopping destination. Vacancies are considerably higher than on the other side of the Mur River, and new impulses will be required to trigger a trend rever- sal and close the gaps in shop occupancy. Rents in Graz are constant at a solid level. Prices at the best locations range from EUR 45 to 80/ sqm, but there are individual cases up to EUR 90. The vacancy rate equals roughly 4% and has remained at this good level for many years. Turnover is also low at only seven per cent for prime locations, and the rate for the city as a whole (10.5 per cent) is also below the average for Austria’s lar- gest cities. The most notable changes in the recent past included the takeover of Modehaus Brühl by Aiola Living and the opening of a hotel (Motel One) in the historical Dorotheum building am Jakomini- platz after extensive refurbishment. In contrast,
Bipa, Nespresso, Burgerista and Orsay have closed their branches in the Graz City.
The further development of the inner city area will be dependent on the success of the planned bou- levard expansion and new traffic concepts with a better focus on pedestrians, cyclists and public transportation users. The design of the western section of the inner city (between the Herrengas- se and Mur River), in particular, will be re-evalua- ted. The far-reaching plans to expand the public transport network to include a first underground line have been discarded, but the Jakominiplatz will be connected with the Annenstrasse via a new tram line, together with sidewalks and bicycle paths, by 2025. These measures, when completed, could provide new impulses for the retail trade and (possibly even stronger) for gastronomy in the city centre.
Data and facts on the retail market in Graz
Retail space city
167,300 sqm
Ø Shop size Vacancy rate
181 sqm
4.0 %
Fluctuation rate
10.5 %
Rents in Graz
Location
Net rent EUR/sqm/month
Shopping streets prime locations Shopping streets sec. locations
93 36 52
Shopping malls
Source: Standort + Markt 2022/23
21
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