Retail Market Report Austria | 2018

Market share of shopping centres and retail parks

Vienna 25.7%

Lower Austria 23.1%

Upper Austria

19.2%

Vorarlberg 18.6%

Burgenland 42.5%

Styria

Salzburg

22.6%

Tyrol

22.3%

27.6%

Carinthia

20.7%

Source :

| Q1 2018

Shopping centres and retail parks

gastro share in Austrian shopping centres is still clearly below 25 per cent, which represents the new medium- term international standard. Innovative recreational activities like surfing facilities or beach volleyball courts are also joining the offers. The tenant mix is becoming more flexible and, in addition to high-frequency anchor tenants, popup stores help to increase visitor frequency and revenues and diversify the shopping experience. Retail parks are also seeing a greater focus on quality improvements instead of expansion and new construction. Only two projects are expected to be completed in 2018: the Braunsberger retail park in St. Pölten and the Siegendorf retail park.

The increase in shopping centre space has practically come to a standstill. Only two new projects were completed in Vienna during 2017: the successful expansion of the “huma eleven“ by 20,000 sqm and the new opening of the approx. 5,500 sqm “Post am Rochus“ which opened with slight start-up problems. No larger projects or expansions are planned for 2018, with the exception of the next Auhof Center expansion. Instead of further expansion, the top shopping centres – including Vienna’s four largest: the SCS, Donauzentrum, Auhof Center and huma eleven – are currently working on new concepts to counter the frequent decline in visitors. The shopping temple is increasingly becoming a recreational hot spot where people like to spend time with family and friends. One consequence of this trend is a further increase in the gastronomy offering. The

Rents shopping centres and retail parks | Q1 2018

Net rents EUR/sqm/m

Price trend

Prime location

40 - 120

stable

Development of shopping centre prime rents (EUR/sqm)

SCS, Donauzentrum, Auhof Center etc. Secondary location Q 19, Lugner City, BahnhofCity Vienna West District centres

15 - 50

stable

stable

6 - 12 slightly decreasing

Retail parks Vienna

Out look

8 - 12

stable

Federal provinces

5 - 11 slightly decreasing

| 17 | 18*

11 | 12 | 13 | 14 | 15 | 16

Source: EHL Market Research | Q1 2018

* Forecast

Source: EHL Market Research | Q1 2018

11

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