In the past, the retail sector has been the most popular with real estate investors, after the office sector. But the pandemic has reshuffled the cards, and the reluctance is on these transactions related to shopping places. Just under 700 million euros were committed to the retail market in France in the first half of 2021, a marked drop of 69% over one year, measures Knight Frank.
This is the lowest amount recorded over a semester for 20 years. Over the period from January to June 2021, retail represented only 8% of all volumes invested in France (all types of assets combined), while industrial real estate reached 26%.
“In an exceptional situation, an exceptional decline: for more than a year the health crisis has dealt a very hard blow to trade due to successive confinements, which have weakened the brands and brought the caution of investors to its maximum, says Antoine Grignon, Co-Director of the Investment Department at Knight Frank France. As a result, several files were withdrawn from the market while the time taken to complete transactions was significantly longer. Finally, no giant transaction mitigated the decline in activity, such as the ‘last year sold the URW shopping center portfolio. “
Fewer than five transactions exceeded 50 million euros in this first half. The outskirts are favored by investors: Casino has sold a portfolio of hypermarkets to WP Carey, while the upcoming partnership between Altarea and Crédit Agricole Assurances relates in particular to nine French retail parks. Peripheral commerce will continue, according to Knight Frank, to “profit over the next few years from the change in consumption patterns and the demographic dynamism of peri-urban areas”.
Regarding the city center, the recent acquisition of 275 rue Saint-Honoré in Paris makes the real estate specialist say that large investors continue “to position themselves in the most locations of the capital despite the temporary drop in tourist arrivals foreigners “. With the return of customers to the store, he also predicts a recovery in the rental market in the coming months, “especially since many brands have resumed their expansion plan and taken the measure of the efforts to be made to adapt their offer. new consumer expectations “, concludes Antoine Grignon.
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