Retail Market Report | 2020

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Focus on Greater Parndorf

Outdoor Center Parndorf, in which retailers focused exclusively on outdoor sports such as hiking, climbing, etc. will be located on 14,000 sqm. As yet unparalleled in Europe, the concept will be enhanced with high-quality gastronomy and indoor sports facilities such as a bike test track and a water park. Despite the corona crisis, for retailers, developers and investors the prospects for the Parndorf site are positive in the long term. The focus on price-conscious brand buyers is a strong USP that may even gain in appeal in a weaker economic environment. Parndorf benefits first and foremost from its enormous catchment area spanning from Vienna via Bratislava to Hungary. Around 10.5 million consumers can reach it in a 90-minutes drive. Customers particularly from Bratislava prefer to shop in Parndorf. The most important draw is the designer outlet with seven million visitors every year. Increased investments in the quality of stay, such as exceptional sanitary facilities and spacious parking areas as well as the inclusion of numerous gastronomy services have significantly enhanced the value of the retail parks adjacent to the designer and fashion outlet in the last few years.

What began with the opening of the McArthurGlen Designer Outlet in 1998 has meanwhile become Austria’s biggest and most successful retail park agglomerations. While sales space overall is down in Austria, Parndorf has continued to grow in 2020 and will in 2021 as well. There are no declining frequencies there, and demand for space remains highly satisfactory. Rents were therefore stable until the corona lockdown and since then have also turned out to be more robust than the overall market.

New projects enhance the region’s value further

A total of around 64,000 sqm are being developed in four projects in 2020/21. In spring 2020 the 6,000 sqm retail park K2 opened in Kittsee. A recent addition was PADO Galerien, an expansion of the PADO Shopping Park with 30 shops and popular anchor tenants such as Merkur, Intersport and Humanic. Two new projects are also planned: it is currently uncertain when Frunpark Parndorf (23,000 sqm) will open. The first well-known major tenant is XXL Sports with 3,000 sqm of rental space. Further momentum will be provided by the

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