Retail Market Report | 2020

Sales space (in sqm) and share of retail (in %) in Vienna’s shopping streets

250,000

17.0 %

18 % 16 % 14 % 12 % 10 %

200,000

150,000

8 % 6 % 4 % 2 % 0 %

100,000

4.6 %

3.3 %

4.5 %

3.7 %

50,000

Innere Mariahilfer Str.

City

Landstraßer Hauptstraße

Favoritenstraße

Meidlinger Hauptstr.

Vacancy rate

Retail

Retail-supporting supply

Vacancy rate (in %)

Source :

2019/2020

stores and storage concepts. What remains to be seen is the actual realisation of initiatives to stimulate retail, such as the million-euro funding scheme that the Vienna Economic Chamber’s counsel for location issues recently proposed in an effort to upgrade ground floor zones.

Rents top shopping streets | Q1 2020

Net rent EUR/sqm/m

Kohlmarkt

250 - 450 190 - 350 120 - 330 35 - 150 30 - 130 15 - 55 15 - 55 10 - 50

Graben

Kärntner Straße

Innere Mariahilfer Straße

Rotenturmstraße Favoritenstraße

Neubaugasse

Landstraßer Hauptstraße Meidlinger Hauptstraße

Shopping centres succeed with new services

10 - 30 Source: EHL Market Research | Q3 2020

“Refurbishment rather than expansion” is still the trend with Vienna’s shopping centres. What was pioneered by the leading centres SCS and Donauzentrum is being implemented now in others. Shopping centres are being upgraded into a place for the entire family to spend time, apart from a mere shopping experience. For example, Millennium City on the Handelskai is currently being redesigned. A new cinema complex, a trampoline park, a food court with 1,400 seats and an e-sports arena are to bring about a sizeable increase in frequency. Thus the steady decline of traditional retail services in favour of gastronomy and recreational offers continues. For example, sports services including the increasingly important area of e-sports, games and recreational opportunities for children, such as the “Alice in Wonderland” multimedia service in

“The Mall” at Wien-Mitte, are being used to develop new customer groups and therefore to provide support to traditional retailers. Tenants from the healthcare sector (doctors, massage therapists, physiotherapists, etc.) can also bring additional target groups to shopping centres. A new development has nevertheless launched in 2020: following a long delay due to various citizens’ initiatives, at the beginning of the year the multifunctional project “Vio Plaza” on the Komet site near the U4 station at Meidlinger Hauptstraße was begun. In addition to apartments and offices, a 12,000 sqm shopping centre will also be built. The locally significant Meidlinger Hauptstraße could come under pressure as a result of this competition.

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