Retail parks offer lower yields than shopping centers for the first time
The German retail investment market closed 2018 with a below-average total volume despite several large deals. According to Colliers International, the transaction volume dropped to €9.8bn, Savills calculated just under €13bn. The share of the total market thus shrank to its lowest level in years. One reason for the decline, Colliers states, is the “structural transition” caused by growing online retailing. Asset types used by sectors trending toward online sales such as shopping centers were not popular, while retail properties with a focus on grocery retailing like retail parks were in higher demand. Savills emphasizes that top yields for retail parks dropped below those of shopping centers for the first time: For retail parks, the figure was 4.0 % at the end of the year, for shopping centers the last quarter showed an increase by 30 basis points to 4.2 %.
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