TOM 04 2024

Page 5 T O M
ANALYSES April 2024
Retail on investors‘ shopping lists
CBRE analysis observes optimistic mood
The German retail real estate
investment market grew
by 15% year-on-year to EUR
1.7 billion in the first quarter
of 2024. The asset class thus
led the German real estate investment
market as the most
dynamic segment in the past
quarter.
In contrast, the share of the top
seven markets in the retail real
estate market declined - by eleven
percentage points to 49%.
The portfolio share increased
by eleven percentage points, although
it remained low at 23%.
International investors also only
had a market share of 22% (minus
45 percentage points). This
is the result of a recent analysis
by global real estate service provider
CBRE.
Passable start to
the year
„Retail is playing a good role
again and is also on the shopping
list of many investors this
year,“ says Jan Schönherr, Head
of Retail Investment at CBRE
in Germany. „The year got off
to a reasonable start - given the
generally challenging conditions
for real estate investments.
In the meantime, the price expectations
of buyers and sellers
have converged further, we are
seeing a greater willingness to
sell overall, and book values
have been adjusted further over
the last few months in line with
market developments. On the
buyer side, equity-rich family
offices and pri-vate investors
are currently particularly active
in the city center area.“
Higher footfall
„The retail real estate invest
ment market is benefiting from
attractive yields and the end of
the coronavirus debate, which is
directly associated with higher
footfall in city centers. In addition,
consumers are once again
preferring bricks-and-mortar
retail to online retail in order
to enjoy the shopping experience
again,“ says Dr. Jan Linsin,
Head of Research at CBRE in
Germany. Both the ifo business
climate index and the GfK consumer
climate index have also
The investment market for retail properties grew in the first quarter.
Symbolic image: Pixabay / wal 172619
recently shown positive developments.
One-A properties are in demand
Transaction activity was dominated
by single-A retail properties,
which accounted for 47%
of the investment market for
retail properties. In 2023, this
figure was only 31%. This develop-ment
is primarily attributable
to two major transactions in
Munich, in which the properties
had a combined retail volume of
around half a billion euros: Fünf
Höfe and Maximilianstrasse 12-
14. Food-anchored specialist
stores and retail parks came a
close second in the first quarter
of 2024 - accounting for 45%
(2023: 58%).
Prime yields
remain stable
Prime yields have remained stable
in all segments since the end
of 2023 - although there were
significant increases compared
to the first quarter of 2023. The
lowest prime yields were achieved
by food markets at 4.7% (up
0.2 percentage points), followed
by single-A retail pro-perties in
the top seven cities at 4.84% (up
0.75 percentage points). Retail
parks were at five percent (up
0.5 percentage points). Shopping
centers in A locations recorded
a prime yield of 5.9 percent
(up 0.8 percentage points)
- significantly lower than shopping
centers in B locations
(7.2 percent, up 0.7 percentage
points). „The fact that groceryanchored
properties now have
the lowest prime yields shows
that online retail resilience can
now be more important than a
very good location,“ explains
Anne Gimpel, Team Leader
Valuation Advisory Services at
CBRE in Germany.
Further recovery
expected
„Depending on the ECB‘s interest
rate decisions, we expect
the retail investment market to
pick up further in the coming
months and especially in the
second half of the year, with an
in-creasing number of transactions.
There are already attractive
investment opportunities
for in-vestors, and there will be
promising investment options in
all sub-retail asset classes over
the course of the year,“ says
Schönherr. „In terms of transaction
volume in 2024, we expect
between five and seven billion
euros by the end of the year, depending
heavily on whether large-volume
mixed-use sales and
shopping center transactions
take place and whether the portfolio
market picks up.“
T
TOPS
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TOM
TOPS
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OF THE
RETAIL REAL ESTATE
Essential News About The Players In In
The Retail Real Property Estate Market In in Germany
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