Aggressive expansion by retailers in prime locations in Western Europe is spurring rental growth in most markets, BNP Paribas Real Estate says in a new report released at Mapic in Cannes.
Aggressive expansion by retailers in prime locations in Western Europe is spurring rental growth in most markets, BNP Paribas Real Estate says in a new report released at Mapic in Cannes.
The European Retail Market Report shows that the upward pressure on prime rents is being caused by current availability in top locations not keeping pace with the strong demand.
BNP Paribas Real Estate also notes that retail property investment volumes so far this year in the main markets are generally lower than those of 2011. Prime rents are rising noticeably in Germany, France and Central London.
The overall economic outlook for Europe is sombre. Rising unemployment and austerity measures continue to affect consumer spending, leading to a forecast slight recession for the EU-15 for the year and no significant improvement in economic activity next year. However, prime locations continue to enjoy strong demand from international retailers. Fashion chains have particularly aggressive expansion programmes.
