Our latest EMEA Retail map shows rents have been stabilising over the last six months.
Our latest H2 2021 Retail map shows rents have been stabilising over the last six months. All three forms of retail real estate monitored showed a marked improvement on H1 2021, in terms of the number of markets reporting stable rental conditions at year-end 2021:
- Mainstream high-street locations (MHS) stable rents moved from 49% (H1 2021) to 80% (H2 2021)
- Traditional Shopping Centres (TSCs) moved from 61% (H1 2021) to 80% (H2 2021), and
- Luxury High Streets (LUX HS) moved from 59% to 67%.
However, despite H2’s reprieve, further declines in rents are expected to materialise over 2022. The (continued) lack of market activity and a shift to turnover rents will see market rates and values change, with almost universal pressure on non-core assets and luxury high-street locations. The number of markets expected to see rental declines are as follows:
- MHS locations to expand to 48% from 17% by end 2022
- LUX HS locations to expand to 32% from 23% by end 2022, and
- TSCs to expand to 41% from 14%
Luxury high street locations continue to provide the most stable rental conditions for landlords. Download our Retail pricing map below.