Retail leases: Restaurants have 39 % share of secondary markets


At 80,000 sqm, leased space take-up in German primary markets during the first half of the year fell somewhat short of the same period of 2018 (90,000 sqm), BNP Paribas Real Estate reports. In secondary markets, take-up of 45,000 sqm exceeded the previous year’s value by about half, but remained below that of 2015 to 2017. The current trend – the declining dominance of textile retailers – is felt much more strongly outside of the top cities: New restaurant leases in secondary markets now have a market share of 39 %, while textiles are only accounting for 14 %. But grocery retailers are also on the rise in secondary cities, reaching a market share of 17 %. Across Germany and in the primary markets, restaurants narrowly beat textiles with 25 % to 24 % and 24 % to 23 %. As a result of the restaurant upswing, both the multi-branch ratio (78 %) and internationalization rate (23 %) are dropping, because many owner-operated restaurants are riding along on the expansion wave of system restaurants. Secondary locations in inner cities are gaining importance, partly because good reviews on internet platforms can balance out less advantageous locations.

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