MIPIM 2019 (24.1 MB)

Investing in Austria
Trend 2
THE BIG NAMES ARE MISSING
According to a recent annual survey conducted
by RegioData Research on more
than 800 chain stores and franchise
systems, approx. 460 Austrian retail and
commercial companies are planning to
expand this year. This figure is about 15%
down from the previous year and about
40% less than 5 years ago. A few years
ago the big chain stores trading in clothes,
shoes, furniture, etc. were looking for new
locations. In the meantime this role has
been taken over by smaller companies.
Food retailers represent the exception – in
this sector expansion remains vigorous.
Trend 3
SUPPLY OF SPACE
EXCEEDS DEMAND
If one balances the expansion requirements
for 2019 against the anticipated
branch closures, then this year (for the
first time in ten years) will see more abandoned
sites than new openings for retail
and commercial services (system gastronomy,
banks, travel agencies, hairdressers,
etc.). A decade ago, this was down to
the impact of the economic crisis - now
it is online trading that leads to closures.
Consequently, this trend does not apply
to sectors that are not or little affected by
online retailing: food retailers, chemists
and system gastronomy.
Trend 4
THE HIGH-FLYING SECTOR:
SYSTEM GASTRONOMY
The system gastronomy sector is seeking
the majority of sites. Since both Austrians
and tourists are spending more and more
money on eating out year upon year, the
potential as well as the possibility of expansion
strongly increase. But even here
it's no longer only the big players, but many
new, small companies that are testing
their fortunes with innovative concepts. A
total of 76 different gastronomic concepts
are looking for new locations this year.
sult, prime rents in the city center were able to
maintain their high level, while investors in virtually
all other locations had to accept price
reductions for new and subsequent-rental
properties recently. With a stable 400 Euros
per square meter in the luxury locations in
the first district, Vienna remained one of the
ten most expensive high-street locations in
the world in 2018.
Bitzer expects the trend of retail space in large
shopping centers to be partially replaced by
gastronomy, entertainment and services to
increase. "One used to assume that a shopping
Rents in shopping centres & retail parks / Q4/18
NET RENT EURO/SQM/M
TREND
Prime location 40 - 120 stable
SCS, Donauzentrum, Auhof Center etc.
Secondary location 15 - 40 slightly decreasing
Q 19, Lugner City, BahnhofCity Wien West
District centres 8 - 12 slightly decreasing
Retail parks 8 -13 stable
Source: EHL Market Research, Q1 2019
Rents in top shopping streets / Q4/18
SHOPPING STREET
NET RENT EURO/SQM/M
Kohlmarkt 250 - 400
Graben 190 - 300
Kärntner Straße 110 - 300
Innere Mariahilfer Straße 30 - 110
Rotenturmstraße 30 - 120
Favoritenstraße 15 - 55
Neubaugasse 15 - 55
Landstraßer Hauptstraße 10 - 50
Meidlinger Hauptstraße 10 - 30
Source: EHL Market Research, Q1 2019
center without a strong anchor tenant, such as
one from the electronics sector had a problem.
Today an attractive selection of restaurants
has become a must-have. In the coming years
innovative entertainment offers will become
vital. Unique experience, variety and individualisation
are the trends of the future, which
developers and operators have to face in order
to make the stationary retail trade attractive in
the long run.” These would include the integration
of interactive locations such as language
schools and sports facilities, but also greater
regionalisation and individualisation both in
design and in variety of shops.
n
"In 2018, around 43,000 square
meters of new shopping space was
built - primarily as extensions of
existing shopping centers."
42 ImmoFokus