Overview Retail Market Vienna
Executive Summary
Severe loss of revenue among the most important tenant groups
whose refurbishment is now finished, will also benefit from this in the long term.
Relatively stable demand for space in capital cities
The most important tenant groups for retail space, thus classic retailers, gastronomy and numerous service providers, are showing severe declines in revenue as a result of temporary closures, distancing rules and consumer restraint. This must often be met with a temporary waiver and then a potential reduction of rents.
Retail in Graz, Salzburg, Innsbruck and Linz is developing somewhat better than in the capital city of Vienna. Nevertheless, there are also isolated vacancies now in prime locations, offering potential clients opportunities that, absent the crisis, may not have arisen for years. Real estate with local supplier potential the focus of investors Well-established retail parks with local supplier potential are currently the most sought-after investment class within the retail segment. In order to be attractive for investors, there must be excellent transport connections, a good and varied tenant mix with an anchor tenant particularly from the food sector, and a catchment area with a high level of purchasing power.
Concentration on top locations continues
Retailers are increasingly focusing on the shopping streets with the heaviest frequency and on modern, large shopping centres. This long-observed development is further reinforced by the difficult situation of the market as a whole.
Development of major retail sectors varies widely
The crisis is affecting the retail sectors in a variety of ways. For fashion, shoes and electronics, the network of stores is being thinned, whereas food retail is continually expanding. Sporting goods, DIY markets, garden centres and furniture retail are also profiting and even searching for additional space.
Important market indicators
Economic Data Austria 2020 Unemployment rate (Eurostat)
5.5% 357.5 -7.0% 0.8% -10.3% -4.2 % -5.5 %
Nom. GDP EUR bn Economic growth
Shared zones vitalise shopping streets
Inflation
The refurbishment of Rotenturmstraße has been completed and been very well received. Higher frequencies are already being reported, and the requests for space are increasing. Neubaugasse,
State budget GDP per capita
Private consumer spending
Source: WIFO economic forecast | OeNB (inflation rate)
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