LONDON-Even though most of the world is sweating the ability of the 27-member Eurozone’s ability to get a handle on debt, the strong retail markets in the countries stayed stable, according to a recent second half Colliers International report. The majority of markets surveyed reported stable prime rents, although almost a dozen reported some growth from the first to third quarter, according to the company’s EMEA Retail Rents Map.
Both prime retail streets and shopping centers reported relatively stable rates, but declining yields, according to the report. Retail streets with notable rent increases were reported in Oslo and Riga with gains of 7% and 10%, respectively, Notable rent increases for shopping centers were seen in Leeds and Milan, pushed upwards by 8% and 11% respectively, Colliers said in a statement.
Conversely, Athens and Sofia, Bulgaria saw sharp decreases in prime high street rents, down 17% and 15% in each case. Amsterdam saw drops in retail street yields, while Moscow saw shopping center yields lowered to 10%.
“Prime retail assets have continued to attract strong investor demand,” says Ian Elliott, head of retail for the company in Eastern Europe, “Large, dominant shopping centers are still in vogue with cash-rich investors looking for large, well-leased, low-risk investments.”
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