EMEA Retail MarketView Q4 2013

High street rents increased by 0.8%. High street yields decreased by 10bps. Shopping centre rents increased by 2.9%. Shopping centre yields decreased by 7bps. 

Consumer sentiment strengthened during 2013

Consumer sentiment improved steadily in 2013, rising by 10.9 percentage points. A number of markets saw confidence levels strengthen throughout the year including the Netherlands and Ireland and although the EU indicator is still in negative territory it is above the long term average.

Renewed confidence has not done enough for sales

Improving confidence levels in the Autumn did not translate into a bumper Christmas for retailers in most markets, as consumers retain an element of caution when it comes to spending on discretionary items. The volume of retail sales in EU-28 grew marginally (0.1% in December 2013) but was 0.8% lower than November 2013.

Shopping Centre rents see significant growth in Q4

The CBRE EMEA Shopping Centre rent index rose by 2.9% in Q4, mostly as a result of significant rental growth in France where occupier demand for the best, most established centres remains high. This trend is not confined to shopping centres however. The gap between prime and secondary remains firmly in place in prime high streets too. Whilst the High street Index only rose by 0.8% in Q4, on a year-on- year basis this was 4.0%

Investment in Retail in Q4 highest since Q4 2006

2013 was the strongest year for retail investment in Europe since 2007 with € 41.3 billion transacted. This also represents a 20.4% increase on 2012 investment volumes ( € 34.3 billion). Shopping centre yields moved down by 7bps and high street yields moved down by 10bps as investor demand for retail increased.