MAPIC Strong link emerges between European city attractiveness and retail rental growth

The success or failure of European cities as retail destinations is becoming strongly intertwined with their rankings on ‘social buzz’ factors, according to a new research report issued by retail specialist Redevco.

The 2017 City Attractiveness study of retail real estate investment manager Redevco shows that the higher the proportion of creative professionals in the population or number of tourist attractions, the better the city’s quality which in turn positively impacts rental growth.

PropertyEU Briefings at Mapic 2017
Redevco Stand (P-1.M51)

Consumer, Retail & Investment Trends
15 November, 1500-16.00

Retail Innovation & Technology
(16 November, 10.30-11.30)

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The whirlwind forces of urbanisation, online shopping and the growing consumer search for ‘experience’ are forcing both investors and retailers to be far more selective about locations. The wrong choice of city, or even parallel streets, can be a very costly one.

While the most attractive cities continue to grow and outperform, a significant number of less attractive cities slide down the ladder even further. Volatility of returns and polarisation between prime and other locations is intensifying, meaning it is becoming increasingly important to gauge the relative allure of less prominent cities.
'Retail real estate investment has become a much more specialist game, not only because the way that retailers do their business has become far more complex, but also due to increasing polarisation and a retail landscape that is evolving so rapidly. You have to be a specialist to understand, which retailers are likely to be successful and how you can create an environment that appeals to consumers’ thirst for enjoyment, beyond simply the retail offering,' said Redevco’s head of research and strategy, Marrit Laning.


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