REAL ESTATE PAN-EUROPEANFOR A CHANGING WORLD FOOTFALL ANALYSIS Key global and lifestyle cities 2017-2018
PROPERTY DEVELOPMENT TRANSACTION CONSULTING VALUATION PROPERTY MANAGEMENT INVESTMENTRETAIL MANAGEMENT
Real EstateReal Estate forfor a a changing changing world world CONTENT
Macroeconomics ...... 04 Amsterdam ...... 30 Helsinki ...... 46 Warsaw ...... 62
Synthesis ...... 06 Athens ...... 32 Lisbon ...... 48 Zurich ...... 64
Barcelona ...... 34 Munich ...... 50
London ...... 10 Brussels ...... 36 Oslo ...... 52 Methodology...... 67
Paris ...... 14 Budapest ...... 38 Prague ...... 54 Results by country ...... 68
Madrid ...... 18 Copenhagen ...... 40 Rome ...... 56 Contacts ...... 70
Milan ...... 22 Dublin ...... 42 Stockholm ...... 58
Berlin ...... 26 Frankfurt...... 44 Vienna ...... 60
2 BNP Paribas Real Estate RETAIL FOREWORD
BNP Paribas Real Estate is delighted to For the past five years, regular present our first fully comprehensive footfall counts have been Pan-European Footfall Analysis undertaken in prime cities across covering key global and lifestyle cities. Germany. Even if the results may be Changes in retail over the last decade influenced by local circumstances are no longer cyclical, but are now structural. As rapid and should not be interpreted as the "pure truth", technological and structural developments occurred they indicate the general trends very well. within the retail sector, many feared the internet would Significant differences in the number of passers-by kill our High Streets and shops. However, this is not the have implications for customer conversion- and case. It has merely liberated them and encouraged the with it sales-potential. creation of new retail models. Changes in pedestrian frequency over time are For many International Retailers, the major cities interesting as well. If they show a consistent continue to demonstrate their appeal and our High pattern, as it is a clear sign that the structure and Street Footfall Analysis emphasises the desire of the importance of the location is changing. Notably consumer to embrace physical retailing, especially as in times when retailers have to adapt and improve new models and space formats of successful retailers their concept and strategy, such qualitative continue to rapidly evolve. aspects are particularly relevant. Our study has been co-ordinated across 23 global and Our clients rely on this information together lifestyle cities throughout Europe, which was activated with other data and examinations to formulate on Saturday the 10th of June 2017 between the hours their expansion strategy and to identify of 14:00 and 16:00 or peak hours, taking into account particular locations of interest. the cultural trading differences of cities. Each city was It is therefore a significant advantage to our divided into “Mass-Market to Upmarket” and “Luxury” clients that the Research team of BNP Paribas Real categories and between 3 and 10 streets were selected, Estate has undertaken a coordinated European- depending on scale and population of the city. wide study. From my point of view the results We hope you find this Report useful, as many of our are very interesting and will provide a better active and expansive International Retail clients have understanding and comparison of all markets and specifically asked for this style of analysis. Should you different developments across the major European require more granular data, then please do not hesitate cities. I believe this report will supply our clients, to contact us and we will direct you to our various colleagues and market participants an interesting Research Departments. read and will elicit inspiration for the future.
Larry YOUNG Wolfgang SCHNEIDER Head of International Investment Group Head of Research - Germany
RETAIL BNP Paribas Real Estate 3 PAN-EUROPEAN ECONOMIC OVERVIEW Europe’s recovery is beginning at a poignant time, marking the tenth anniversary of the credit crunch, the start of a sequence of events that led to the Global Financial Crisis (GFC) of 2008/9, and the So- vereign Debt Crisis of 2012. Geopolitical context and Brexit reinforce uncertainties in a medium-term. Samuel DUAH Over this period Europe’s retail market has changed markedly. For retail the last ten years are essen- Head of Real Estate Economics tially a story about the struggle to create value amidst falling demand whilst adapting to profound at BNP Paribas Real Estate disruptive change in the distribution chain; from producer to the consumer.
Growth returns GDP growth average 2017-2018 to the European economy % Europe’s slow economic recovery since 2009 is now strengthe- ning. This is evident by the 2.2% quarterly annualised growth rate 3 seen since mid-2016, well above its trend growth. It highlights the fact that European economic growth, at this point, is outperfor- 2 ming other developed economies and the medium term outlook looks promising. Although growth has been broad-based some countries, admittedly in Southern Europe, are yet to regain their 1 pre-crisis level of economic output (Italy and Portugal). Spain though, has seen some of the fastest growth in recent quarters, 0 helping it to surpass its pre-crisis level. However, the most im- portant thing here is that domestic demand, supported by both UK Italy
Spain consumer spending and investment demand, appears to be a France Poland Ireland Austria Greece Finland Norway Sweden Belgium Portugal Hungary Denmark Germany key driver for growth in most countries; a development that is Switzerland Netherlands
Czech Republic positive for the retail trade.
4 BNP Paribas Real Estate RETAIL Household Disposable Income % The role of inflation 6 Poland 4 France in modern 2 Italy retail pricing power 0 Spain - 2 Germany Post GFC, consumer demand fell, whilst sup- - 4 Sweden ply of goods and services was slow to adjust. - 6 For Europe this meant flirtation with deflation UK (and for most part low level of inflation). The 10 11 12 13 14 15 16 17 18 low level of inflation has remained a key fea- ture of the European economy since 2009. Headline inflation at the European level is Low wage growth but real household currently at 1.5% p.a. remains marginally below what central banks deem desirable. income is growing Although this represents a significant impro- Despite economic growth it is likely that consumer demand is only at an early stage vement on the recent past, it remains low in of gaining the sort of momentum it had pre 2007. For Europe this is tied to the historical context. employment situation because increased consumer demand is underpinned by job Low inflation means the intense price com- growth and, household income and wage growth. petition, traditionally a ground for difference Eurozone unemployment rate peaked at 12.1% in 2013. It has subsequently between retailers, no longer functions in the improved to stand at 9.1%. Despite this the story remains mixed across countries. same way. With low demand, price compe- The lowest rate outside the Eurozone can be found in the Czech Republic at 2.9% tition still exists only because overtly raising and in the Eurozone in Germany at 3.0%, with UK recording a historical low of 4.3% prices makes traditional retailers stand out in recent months. Overall we believe the downward trend will continue over the for poor value for money, a situation made come years, backed by the improving economic picture. more acute by the pricing clarity offered by Notwithstanding the falling unemployment rate, real wage growth across Europe has information technology. remained weak at 0.5%. The rational for this is multifaceted and appears transitory. In an environment of low demand and in- This implies that in the medium term we are likely to see these factors soften and creasing online sales, retailers struggle to in- meaningful real wage growth appearing. The boost to household real income will crease margins. Instead increasingly retailers support consumer spending. It is more people in work plus and wage growth that is are competing on non-price differences and the backbone for consumer confidence and increases in retail sales. If maintained, generating margins by re-organising their retailers can look forward to a more predictable and positive macro environment operations. than that experienced over the last ten years.
RETAIL BNP Paribas Real Estate 5 SYNTHESIS
Foreword by the authors. This Pan-Eu- ropean Footfall Analysis is aimed at providing a one-off “picture” of the prime streets in 23 key global and lifestyle cities. Pedestrian traffic is one of the prime indicators of retail strength, albeit not sufficient in its own right to be a fully determinant driver. The fundamental measure of a successful retail area is the conversion of pedestrian flows into purchases. In- deed, in some areas of lesser footfall such as for example luxury precincts, high store turnovers can occur despite the lower flows. Europe TOP 30 Footfall, Mass-market Prime Streets (pedestrians/hour) MIXED * MASS TO UP MARKET *
Ranking dCity Location Class Footfall counting FOOTFALL 1 London Oxford Street 13,560 TOP MASS-MARKET 2 Munich Kaufingerstraße 12,832 3 Madrid Calle de Preciados 10,292 HIGH STREETS 4 Frankfurt Zeil 10,280 5 Paris Av. des Champs Elysées 10,277 United Kingdom, Germany, Spain and France compete 6 Barcelona Av. del Portal de Angel 10,216 for the top 5 positions in the European Top 30. Whilst London leads the way with a record value of 13,560 7 Barcelona Passeig de Gracia 10,132 pedestrians per hour, the survey highlights the strength 8 Madrid Gran Vía 9,956 of the main German regional capitals, with Munich and 9 London Regent Street 9,252 Frankfurt being in the Top 5. Notably, Spain with Madrid (3rd) and Barcelona (7th) has 10 Madrid Calle Fuencarral 9,196 a total of five streets in the Top 10. 11 Dublin Grafton Street 8,802 France closes the Top 5 with the iconic Avenue des 12 Vienna Mariahilfer Straße 8,796 Champs Elysées, just edging ahead of Frankfurt and Ma- drid with around 10,300 pedestrians per hour. 13 Milan Corso Vittorio Emanuele II 8,598 14 Zurich Bahnhofstraße (North) 8,586 15 Dublin Henry Street /Mary Street 8,505
16 Stockholm Drottninggatan 8,430 17 Stockholm Hamngatan 8,342 18 Rome Via del Corso 8,152 19 Paris Boulevard Haussmann 8,143 20 Vienna Kärntner Straße 8,114 21 Copenhagen Amagertorv 8,094 22 Prague Na Príkope Street 8,008 23 Prague Václavské Námestí 7,932 24 Amsterdam Kalverstraat 7,888 25 Munich Theatinerstraße 7,604 26 Copenhagen Østergade 7,494 27 Berlin Tauentzienstraße 7,095 28 Copenhagen Købmagergade 6,964 29 Brussels Rue Neuve 6,772 30 Berlin Kurfürstendamm (East) 6,609 Source: BNP Paribas Real Estate Research BNP Paribas Real Estate Source:
* The Top 30 includes the following categories: 1-Mass-to up-market Prime Streets 2 - Mixed Prime Streets (offer stretching from mass-market to luxury)
RETAIL BNP Paribas Real Estate 7 Structure of downtown retail cores A correlation links the footfall to the spatial structure of city core areas. Where cities present a single retail core, focused on 2 to 3 prime streets, highest numbers are achieved on these streets (Munich, Du- Destination cities by International blin, the Scandinavian cities, Prague and Zurich for example). Inversely, due Overnight visitors 2016 (million) to their large catchment areas, London, Berlin and Paris do not have a single core but rather have multiple clusters; hence they achieve a record London 19,06 footfall on their two iconic and most visible streets while more “modest” Paris 15,45 traffic – nonetheless good performances for retailers – is achieved for the Istanbul 9,16 remaining clusters. Barcelona 8,36 Transport hubs and urban regeneration play main role as well in heavy Amsterdam 8,36 footfall figures. Milan 8,17 Prime streets located near transport hubs -like Oslo and Helsinki- take Rome 7,09 advantage from the flows of these hubs. Urban regeneration creates Vienna 6,42 not only an improved shopping environment, but also rejuvenates the market supply by attracting new retailers and investors. Warsaw, Prague 6,11 Dublin 5,51
Vienna and Lisbon have recently experienced such outcomes. New retail Global Destination Cities 2017 Mastercard Source: schemes develop flows as well, they can even shift the retail focal point as seen in Amsterdam. Role of tourism
Alongside the major metropolitan areas, a group of smaller cities boast a worthy po- sition in terms of flows. The cities include for example Vienna, Dublin, Zurich and Stockholm which feature in the Top 20 of mass-market prime streets. The local economic and cultural character of these towns has a significant impact on these numbers. However, tourism clearly stands out as a key driver of footfall, all the more so as counting was undertaken in June, when tourism enters the peak periods and sunshine hours are at a maximum in Scandinavia. Indeed, there is a direct correlation between the Top 10 Foreign Overnight visitors in Europe and the footfall. Rankings indicate that, in addition to the “big names” in absolute terms (i.e. London, Paris, Barcelona or Milan), a group of smaller European cities has recorded noteworthy volumes in visi- tor attendance over the 2009-2016 period, namely Prague, Amsterdam, Vienna and Dublin. FOOTFALL - TOP LUXURY HIGH STREETS In the luxury high street sector, the Top 5 figures are recorded by France, Spain, UK and, a step behind, Europe TOP 20 Denmark, (all achieving over 7,000 pedestrians per hour). The top five streets are “iconic” walkway pre- Footfall, Luxury Prime Streets (pedestrians/hour) cincts which enjoy a high degree of tourist activity. MIXED * LUXURY * In addition, they are not “pure” luxury as their offers cover the entire range from mass-market to luxury; Ranking dCity Location Class Footfall counting hence the heavy footfall is made up of a full extent of 1 Paris Av. des Champs Elysées 10,277 customer profiles both local and visitors. Genuine luxury prime streets are dominated by Italy: 2 Barcelona Passeig de Gracia 10,132 Rome’s Via Condotti which leads to Piazza di Spagna is 3 London Regent Street 9,252 the top luxury spot in terms of footfall. 4 Copenhagen Amagertorv 8,094 Here, the survey indicates two clear categories of luxury precinct: 5 Copenhagen Østergade 7,494 - Areas located on the way to a major tourist site (castle, 6 Rome Via dei Condotti 6,545 museum, etc.) benefit from major tourist flows in addition 7 London Old Bond Street 5,564 to high-profile regular clients. These locales record the 8 Rome Via del Babuino /Piazza di Spagna 5,003 highest footfall after the Top 5. For example, Kohlmarkt (Vienna), Pohjoisesplanadi (Helsinki), Bahnhofstraße - 9 Vienna Kohlmarkt 4,744 South (Zurich) and Parˇížská Street (Prague). 10 Zurich Bahnhofstraße (South) 4,064 - Luxury precincts that are more remote from heavy 11 Helsinki Pohjoisesplanadi 3,738 flows. These locations such as Avenue Montaigne (Paris), Boulevard de Waterloo (Brussels), Andrassy út (Budapest) 12 Stockholm Biblioteksgatan 3,376 and Voukourestiou Street (Athens) tend to be the “chic” 13 London South Molton Street 3,298 addresses for very high-net-worth customers – both local 14 Milan Via Montenapoleone 2,932 and international; hence a lower footfall is to be expected. This does not translate into lower turnovers; it is usually 15 Prague Pařížská Street 2,814 the contrary. 16 London New Bond Street 2,746 17 Madrid Calle Serrano 2,384 18 Frankfurt Goethestraße 2,194 19 Oslo Nedre Slottsgate 2,056 20 Paris Rue Saint-Honoré 2,042 Source: BNP Paribas Real Estate Research BNP Paribas Real Estate Source:
* The Top 20 includes the following categories: 1-Luxury Prime Streets 2 - Mixed Prime Streets (offer stretching from mass-market to luxury)
RETAIL BNP Paribas Real Estate 9
Unparalleled variety and creative placemaking define London’s retail scene
he London retail market continues to defy second most visited city in the world attracting expectations of a significant post Brexit 19.06 million foreign visitors in 2016. retail slowdown. The capital’s international Whilst the currency discount from Brexit ins- appeal as a top shopping destination and pired devaluation has undoubtedly attracted Tits position as a prominent cultural and educa- some opportunistic retail tourism, it is the un- tional centre ensure that visitor numbers remain rivalled retail offer of the West End which pro- high and sales values grow. London remains the vides major allure.
Population (million) Population (million) Overnight Foreign Purchasing Power Purchasing Power City Metropolitan region Visitors (million) (per capita) - In € (per capita) - Index 8.67 13.84 19.06 27,146 198.6 Sources: City population 2016, BNP PRE Research, Sources: population 2015, Eurostat region - Metropolitan 2016, Mastercard visitors - Overnight international 2017 Global Destination Cities Index GFK 2016 with UE 42=Base 100 power, - Purchasing
RETAIL BNP Paribas Real Estate 11 LONDON
Regent’s Park JOHN LEWIS and HOUSE OF FRASER Department Stores MARYLEBONE HIGH STREET 1,656 13,560 OXFORD STREET Paddington Railway Tottenham and Tube Stations SELFRIDGES Court Road Tube 1,194 CHEAPSIDE (*) Department Store REGENT STREET Marble Arch Tube 9,252 3,514 LONG ACRE Bank Tube SOUTH MOLTON STREET 3,298 2,746 St Paul’s Covent Garden Piazza Cathedral NEW BOND STREET Picadilly Circus Hyde Park Tube London Bridge OLD BOND STREET 5,564 FORTNUM & MASON Department Store London Eye Knightsbrigde Tube HARVEY NICHOLS Department Store Buckingham Palace HARRODS Department Store 708 SLOANE STREET
Westminster PETER JONES Cathedral Department Store Rent €/sqm/month Footfall (pedestrians per hour) Sloane Square Tube Day of count : 10.06.2017 OLD BOND STREET 1,781 KING’S ROAD 1,802 From Mass Market to Up Market OXFORD STREET 1,119 Mixed (Mass Market to Luxury) Luxury REGENT STREET 916 (*) Cheapside - Countings potentially impacted downward by Rapha Nocturne race circuit Prime rent without key money for a store unit 0 500 1 000 m Exchange rate £/€: 1,1341 - Q3 2017 ©BNPPRE Research - D&A Regent Street, Kings Road Bond, Sloane and South and Marylebone High Street Molton Streets A The UK - London luxury B C 2,746 pas de données footfall Regent Street continues to attract Bond Street remains New Bond Street Footfall / hour international retailers seeking flagship the global luxury street A- BURBERRY stores. 21-23 The New Crown Bond Estate’s Street placema- in London. Whilst some B- CHANEL king 159 of theNew street Bond also Street draws consu- of the sky high premiums C- LOUIS VUITTON mers 17/20 and traffic New free Bond events Street (Summer witnessed a few years ago have D E D- RALPHStreets, LAUREN NFL) have 1ensured New Bond variety Street in the retailing reduced, sustained international demand has ensured E- CARTIERexperience. 175-177 New Bond Street that upward pressure still exists for the best units. Cha- F F- TIFFANYThe Kings &CO Road remains Chelsea’s 25 Old main Bond retail Streetdestina- nel and Louis Vuitton have been the traditional drivers of G- PRADAtion. It has benefitted 16-from 18 initiatives Old Bond from theStreet Cadogan footfall. Recent additions include jeweler Tasaki, Chloe and G H- GUCCIEstate, with areas such 34 as Old Duke Bond of York Street Square being Alaia. Sloane Street continues to provide a platform for large used for events which help generate footfall. Occupier format stores but generally benefits from seasonal trade. Recent H demand remains strong and vacancy rates stood at upsizes were made by Fendi and Hermès, and Burberry have 4.8% in Q3 2017. signed to relocate to Chelsfields K1 development. A flurry of Marylebone High Street, one of the most prestigious recent activity was observed on South Molton Street, a street pitches, has benefitted from deliberate placemaking which has always been a little cyclical in terms of occupational as well – the Howard de Walden Estate has transfor- demand; rents have grown recently. med the area into a retailing and leisure location which appeals to both tourists and residents. Rents have re- A BURBERRY D RALPH LAUREN G PRADA
corded years of strong rental growth. B CHANEL E CARTIER H GUCCI
C LOUIS VUITTON F TIFFANY & CO. Source: BNP Paribas Real Estate Research
12 BNP Paribas Real Estate RETAIL Oxford Street, Long Acre and Cheapside 13,560 Oxford Street records the highest the presence of Seven Dials to the north Footfall / hour footfall in our survey. Its world leading and Covent Garden to the south ensures department stores such as Selfridges an edgy mix. and John Lewis attract tourists and Cheapside continues to thrive as the primary The UK - London masss domestic shoppers alike. The street area for the City. Because of the surrounding shopper pas de données footfall continues to attract global retailers recently seeing demographic (high percentage of financial professionals), Reserved, Simit Sarayi and Jurlique set up shop. Whilst retail provision is mass- to up-market (Hugo Boss, Ted A- SELFRIDGES 400 Oxford Stree the eastern end continues to improve with impending Baker, Massimo Dutti). The low footfall in comparison to B- FOREVER 21 360-366 Oxford Streett opening of Crossrail, the western area around Bond Street the other areas reflects that it is really a weekday retail C- DISNEY STORE 350-352 Oxford St station has seen rents grow; vacancy is lower at 4.8%. location as fewer people are in the area at the weekend. D- DEBENHAMS 334-348 Oxford Street In Long Acre, & Other Stories and Amorino have recently E- NEXT 325-327 Oxford Street opened. Whilst it tends to attract mid-market retailers, F- HOUSE OF FRASER 318 Oxford Street H G- RIVER ISLAND 325-327 Oxford Street F H- TOP SHOP 214 Oxford Street D C G A B E
Oxford Street
A SELFRIDGES E NEXT
B FOREVER 21 F HOUSE OF FRASER
C DISNEY STORE G RIVER ISLAND
D DEBENHAMS H TOPSHOP
Source: BNP Paribas Real Estate Research
Combining innovative concepts and unrivalled diversity, Paris is a worldwide city for retailing
enefitting from a greater area of 12 million Europe for Sunday opening and has generated inhabitants, Paris supports a huge number additional sales for retailers. Visitor numbers of shops (about 62,000 stores) and boasts are showing positive signs of growth in 2017, a multiplicity of high street retail clusters. a trend that is to continue with Paris hosting BIn addition to local demand, a major driver is the Olympic Games in 2024. Demand from new tourism as Paris is the second1 most visited entrants is vibrant across all activities who often city in terms of foreign visitors in Europe. The test concepts through "pop up" stores. There is creation of ZTI (International tourist zones) also strong entrant demand from the food and allows the city to match rival destinations in beverage sector seeking space in Paris.
Population (million) Population (million) Overnight Foreign Purchasing Power Purchasing Power City Metropolitan region Visitors (million) (per capita) - In € (per capita) - Index 2.20 12.09 15.45 28,541 208.8 Mastercard Global Destination Cities Index 2017 Global Destination Cities Index Mastercard 1 Sources: City population 2016, BNP PRE Research, Sources: population 2015, Eurostat region - Metropolitan 2016, Mastercard visitors - Overnight international 2017 Global Destination Cities Index GFK 2016 with UE 42=Base 100 power, - Purchasing
RETAIL BNP Paribas Real Estate 15 PARIS
St-Lazare Railway ST-LAZARE PARIS Shopping Center Station, Metro and RER Rent €/sqm/month LE PRINTEMPS and GALERIES LAFAYETTE Charles de Gaulle - PASSAGE DU HAVRE AV. DES CHAMPS ELYSÉES 1,833 Etoile Metro, RER Arc de Triomphe Shopping Center Department Stores AVENUE MONTAIGNE 1,083 CHAMPSAV. ELYSEES DES 8,143 BD HAUSSMANN 10,277 BOULEVARD HAUSSMANN 625 Opera Prime rent with key money for a store unit RUE SAINT-HONORE 714 Concorde 2,042 LE FORUM DES HALLES Footfall (pedestrians per hour) Square Shopping Center Day of count : 10.06.2017 Chatelet - BHV From Mass Market to Up Market Les Halles Department Le Marais district AV. MONTAIGNE Metro, RER Mixed (Mass Market to Luxury) Store Louvre Museum Luxury BD SAINT-GERMAIN RUE DE RIVOLI RUE DES FRANCS 0 250 500 m 2,468 Eiffel Tower Orsay Museum BOURGEOIS 4,790 Notre-Dame Champs de Mars Cathedral Park Hôtel de Ville LE BON MARCHE 2,856 Department Store Saint-Michel Bastille Square Metro, RER
BEAUGRENELLE 2,142 Shopping Center 4,334 RUE DE RENNES Luxembourg RUE DE SEVRES Garden 5,504 Montparnasse Railway and Metro RUE DU COMMERCE Stations ©BNPPRE Research - D&A Avenue Montaigne Rive Gauche (Left Bank) Major streets situated on the and Rue Saint-Honoré Left Bank balance renewal of FRANCE - Paris Near the Champs Elysées, Avenue Montaigne is the the retail mix with maintaining premier address for luxury in Paris and worldwide. the atmosphere that the Left 404 Rue Saint Honoré – In front of LongThe- street attracts very high-profile clients so conse- Bank is known for. champ Footfall: 1 713 quently a reduced footfall. Prestigious stores include Boulevard Saint-Germain, Rue de Sèvres Armani, Dior, Chanel, Fendi, Jimmy Choo, Louis Vuitton, and Rue de Rennes have greatest attraction A-& OTHER STORIES 277 Rue Saint HonoréGucci, Valentino, Versace and Saint Laurent. whereas Rue du Commerce has a more vibrant B-VALENTINO 273 Rue St Honoré Rue Saint-Honoré is the 2nd most sought-after district cluster. C-LONGCHAMP 404 Rue Saint Honoréplace for upscale and luxury brands, especially Recent transactions in the area include Artling, D-FENDI 265 Rue Saint Honoréin its western part. The street features the Balibaris, Collector Square and Vanessa Seward. E-TOM FORD 378 Rue Saint Honorérecently opened 2nd Vuitton flagship at the F-COACH 372-374 Rue Saint Honorécorner of Place Vendôme, Balenciaga, Brio- G-EMPORIO ARMANI 368 Rue Saint Honoréni, Coach, Diptyque, Dolce & Gabbana, A C H-GOYARD 233 Rue Saint HonoréGoyard, Furla, Fendi, Longchamp, Marc B Jacobs and Guerlain. D E , F 2 042 A & OTHER STORIES E TOM FORD G Footfall / hour Rue Saint-Honoré B VALENTINO F COACH
C LONGCHAMP G EMPORIO ARMANI
D FENDI H GOYARD H
Source: BNP Paribas Real Estate Research
16 BNP Paribas Real Estate RETAIL Rive Droite (Right Bank) Avenue des Champs Elysées
Boulevard Haussmann is world The 1.9 km iconic shopping avenue attracts the highest famous due to iconic flows. It is home to mass-market retail flagships as well department stores, Galeries as to exclusive venues (Cartier, Louis Vuitton, Le Fou- FRANCE - Paris Lafayette and Printemps, quet’s restaurant). It also includes a wide spectrum with 66- 63 Avenue des Champs Elysées (Maucomplemented- by a mass- cinemas, cafés and restaurant, car showrooms (Mercedes, market offer (H&M, Zara, C&A, Uniqlo). Renault), fashion stores and varied activities (Adidas, Nike, Sephora, M.A.C, boussin) Footfall: 9 598 With the refurbishment of spectacular Forum Fnac, Monoprix, Disney). With the announcement of Apple and Galeries des Halles mall now complete, Rue de Rivoli Lafayette to open in 2018, the battle for available space is fierce. A-LOUIS VUITTON 101 Av. des Champs-Élyséesprepares for a new event with the up-coming B-GUERLAIN 68 Av. des Champs-Élyséesre-opening of the high-end Samaritaine A LOUIS VUITTON D TIFFANY & CO. C-SEPHORA 70-72 Av. des Champs-Élysées department store, an attractive 19th century B SEPHORA E FIVE GUYS D-TIFFANY & CO 62 Av. des Champs-Élyséesbuilding currently under redevelopment; as a C GUERLAIN F CHANEL E-FIVE GUYS 49-51 Av. des Champs-Élyséesresult, the area attracts new-comers seeking a F-CHANEL 52 Av. des Champs-Élyséeshigh profile location. G ZARA G-ZARA 44 Av. des Champs-ÉlyséesRue des Francs-Bourgeois / Le Marais pitch Avenue des Champs Elysées H ABERCROMBIE & FITCH H-ABERCROMBIE & FITCH 23 Av. des Champs-Élyséesthrives by welcoming “affordable luxury” Research BNP Paribas Real Estate Source: brands looking for new premises at attractive rent levels. A noteworthy trend is the opening A C of genuine luxury stores, especially in cosmetics, B with Chanel and Diptyque moving in. D F 10,277 E G H Footfall / hour
Experiencing buoyant times, Madrid’s prime streets recompose and expand
pain’s improved economy with a better Increased appetite from national and interna- labour market and consumer spending tional retailers, is leading to redevelopment in is energising downtown retail. Vigorous core areas and in some cases being extended tourism is also boosting sales: 50.3 million further like Serrano, Salamanca district and Spassengers arrived at Barajas airport in 2016 Gran Vía Street located in the Center. New (+7.7 % vs 15i) and 5.2 million foreign visitors precincts such as Arenal, El Carmen or Azca are in 2016ii (2nd most visited city in Spain) with evolving, the latter having grown significantly U.S.A, UK, France and Germany as visitors’ main with the entries of Decathlon, Mango, Bershka countries of origin. and the largest Zara worldwide (6,000 sqm).
Population (million) Population (million) Overnight Foreign Purchasing Power Purchasing Power City Metropolitan region Visitors (million) (per capita) - In € (per capita) - Index 3.17 6.39 5.24 18,372 134.4 Sources: City population 2016, BNP PRE Research, Sources: population 2015, Eurostat region - Metropolitan 2016, Mastercard visitors - Overnight international 2017 Global Destination Cities Index GFK 2016 with UE 42=Base 100 power, - Purchasing i - Source www.airport-business.com, ii - Source: Mastercard Global Destination Cities Index 2017 Global Destination Cities Index Mastercard ii - Source: www.airport-business.com, i - Source
RETAIL BNP Paribas Real Estate 19 MADRID
Footfall (pedestrians per hour) ABC SERRANO Day of count : 10.06.2017 Shopping Center From Mass Market to Up Market CALLE DE JOSE ORTEGA Y GASSET Mixed (Mass Market to Luxury) 696 Luxury CALLE FUENCARRAL EL CORTE INGLES Department Store 0 200 400 m SERRANO 52 MAN Rent €/sqm/month PLATEA Department Store CALLE DE PRECIADOS 255 Food market mall 2,384 Serrano Metro CALLE SERRANO 240 MERCADO DE 1,608 CALLE DE GOYA CALLE DE ORTEGA Y GASSET 220 SAN ILDEFONSO Food market National Prime rent without key money for a store unit Archaeological Museum EL JARDIN DE SERRANO Shopping Center EL CORTE INGLES 9,196 Department Store MERCADO SAN ANTON Food market CALLE
SERRANO Callao Retiro Metro Metro 9,956 GRAN VIA Puerta de Alcala Arch CALLE DE El Retiro Park, PRECIADOS Gran Via Glass Palace Metro 10,292 Puerta del Sol Metro EL CORTE INGLES Department Store Puerta del Sol square, Touristic district ©BNPPRE Research - D&A Calle de José Ortega y Gasset Calle Serrano Building on genuine exclusive positioning, elegant José Ortega y In Salamanca district, Ser- Gasset Street has proved a select address for high-wealth regular rano stands out as a key clients, therefore a reduced but focused traffic. business and retail avenue. Vacancy is low and its prestigious operators comprise Dior, Chanel, The retail spectrum is Jimmy Choo, Escada, Loro Piano, and Valentino. After a high level large, with luxury repre- José Ortega y Gasset, 9--- Footfall: 696 of request from luxury brands to establish operations in Madrid, a stabilisation in senting 20% of the offer on a perimeter COUNTING POINT in front of CARTIER – Sastreria Pedro Muñoz demand may be seen in the next couple of years. positioned between Alcalá and Goya/Hermo- silla streets, and Don Ramón de la Cruz to A CARTIER E BULGARI José Ortega y Gasset streets. B DIOR F ESCADA On-going renovation is occurring on the high- end section between Alcalá and Jorge Juan C JIMMY CHOO G HERMES 696 streets. Mass-market offer occupies the re- D TIFFANY & CO. H CHANEL maining stores, and a segment from José A-CARTIER Ortega y Gasset 9 Footfall / hour Source: BNP Paribas Real Estate Research Ortega y Gasset to Juan Bravo is under re- B-DIOR Ortega y Gasset 6 generation too. C-JIMMY CHOO Ortega y Gasset 4 Vacancy is limited and recent ope- D-TIFFANY &CO Ortega y Gasset 10 nings comprise the first city-centre Ikea E-BULGARI Ortega y Gasset 17 A in Spain (2,500 sqm), Mango (2,000 sqm), C E F-ESCADA Ortega y Gasset 10 Hugo Boss, Carrera y Carrera, new stores G-HERMES Ortega y Gasset 12 Calle de José Ortega y Gasset of El Corte Inglés, and a Loewe flagship H-CHANEL Ortega y Gasset 16 B D G (1,000 sqm) after their store extension at n°34. H F
20 BNP Paribas Real Estate RETAIL Gran Via, Preciados, Fuencarral and Goya Streets
The Centre district provides a sqm), Adidas (1,800 sqm), Five Guys and Ale-Hop. A FIVE GUYS mass-market offer (90% of the A famed walkway, Calle Preciados is highly visited B BURGER KING stores) stretched over five due to magnets such as Mediamarkt (3,800 sqm) streets which concentrate most and El Corte Ingles Department Store among C NIKE STORE of Madrid’s high street retailing others; hence the highest rental level in Madrid D ZARA over 500+ stores. Gran Vía has undergone (€255/sqm). Fuencarral Street differentiates on E LEFTIES extensive transformation which has strengthened a young and “alternative” fashion position (i.e. its role as a key destination due to powerful hipster and trendy brands) with recent opening F PRIMARK flagship stores. It is also a popular leisure and including Decathlon (2,400 sqm), Scalpers, Guess, G H&M tourist area across night and day, mixing cinemas, Puma, Birkenstock and H&M. H ADIDAS GRAN VIA --- Footfall: 10 718 theatres and restaurants in addition to its Located in Salamanca district, Goya Street is Research BNP Paribas Real Estate Source: complete fashion offer. the other place in Madrid for a family retail offer. Newcomers are Primark (12,400 Current availability is very limited and often require a considerable premium to be paid to gain tenancy. A-FIVE GUYS Gran Vía 44 B-BURGER KING Gran Vía 40 C-NIKE STORE A D-ZARA Gran Vía 34 B C D E F G E-LEFTIES Gran Vía 32 Gran Vía F-H&M Gran Vía 32 G-PRIMARK Gran Vía 32 9,956 H-ADIDAS Gran Vía 21 Footfall / hour H
Milan, global fashion capital, deeply influences retailing worldwide
he 2nd largest metropolitan area in Italy every year, Milan is one of the most cosmopo- by population, Milan is considered Italy’s litan cities in Europe. top financial hub. It is the capital of the The city is internationally recognised as one of country’s most thriving region, Lombardy, the most influential global fashion lifestyle ca- Twhich with 10 million inhabitants, is Italy’s lar- pitals which has recently reinforced its position, gest GDP contributor (10% of total GDP). by hosting the Universal Exposition (EXPO) in With millions of tourists and business visitors 2015 attracting more than 20 million visitors.
Population (million) Population (million) Overnight Foreign Purchasing Power Purchasing Power City Metropolitan region Visitors (million) (per capita) - In € (per capita) - Index 1.35 4.29 8.17 25,708 188.0 Sources: City population 2016, BNP PRE Research, Sources: population 2015, Eurostat region - Metropolitan 2016, Mastercard visitors - Overnight international 2017 Global Destination Cities Index GFK 2016 with UE 42=Base 100 power, - Purchasing
RETAIL BNP Paribas Real Estate 23 MILAN
VIA DELLA SPIGA
VIA MONTENAPOLEONE Parco Sampione Park Sforza Castle 2,027
Cairoli Metro La Scala Theater 2,932
5,330 San Babila Metro VIA DANTE LA RINASCENTE Department Store GALLERIA VITTORIO EMANUELE II Shopping Passage Footfall (pedestrians per hour) Day of count : 10.06.2017 Duomo Metro and CORSO VITTORIO EMANUELE II From Mass Market to Up Market Tramway Stations Duomo Mixed (Mass Market to Luxury) Cathedral 8,598 Rent €/sqm/month Luxury 6,562 VIA MONTENAPOLEONE 500 0 100 200 m Palazzo Reale Novecento Museum Museum CORSO VITTORIO EMANUELE II 250
VIA DANTE 165 VIA TORINO Prime rent without key money for a store unit ©BNPPRE Research - D&A Via Montenapoleone and Via della Spiga Via Montenapoleone is a core destination for luxury and premium brands. Its quality retail offer means the street sees 2,932 limited vacancy and rapid re-letting periods. The street Footfall / hour ITALY - Milan hosts numerous iconic fashion brands such as Gucci, A Via Monte Napoleone - LUXURY Valentino, Rolex, Bulgari, Prada and Hermès; it B PAS DE DONNEE FOOTFALL attracts both flows of tourists and local high-wealth regular C customers for its unique offer and for fashion and design events. A- CARTIER Via Monte Napoleone,Via 16 della Spiga is part of “Quadrilatero della Moda”, Milan’s B- LA PERLA Via Monte Napoleone,high-end 14 high street district and it connects Via Manzoni to main C- HERMES Via Monte Napoleone,Corso 12 Venezia Avenue. D- OMEGA Via Monte Napoleone,Amongst 9 all streets within the "Quadrilatero", Via della Spiga is the only D E- ETRO Via Monte Napoleone,pedestrian 5 street offering a unique shopping experience. F- GUCCI Via Monte Napoleone,Shoppers 5/7 feel like they are on a fashion runway surrounded by well-renowned national and international brands such as Tiffany & Co., Dolce & Gabbana, Tod’s, G- PRADA Via Monte Napoleone, 6 E Prada and Moncler. H- ARMANI Via Monte Napoleone, 2 F Via Montenapoleone G A CARTIER E ETRO
B LA PERLA F GUCCI H C HERMES G PRADA
D OMEGA H ARMANI
Source: BNP Paribas Real Estate Research
24 BNP Paribas Real Estate RETAIL Corso Vittorio Emanuele II, Via Dante and Via Torino
Corso Vittorio Emanuele II retail redevelopment and repositioning A FURLA is a prime mass-market retail with major institutional investors destination in Italy and completing investments and acquisitions. B CARPISA Europe. Via Torino ranks as one of the most C NADINE ITALY - Milan It benefits from a high level famous mass-market retail destinations A D TISSOT Via Monte Napoleone - LUXURY of footfall anchored by one of Europe's major in Milan. Stretching along a 700- sqm- B PAS DE DONNEE FOOTFALL department stores, La Rinascente, and a long circuit, it features a thorough retail E MAX&CO C high number of major fashion retailers such offer, including brands such as Zara, F BENETTON A- CARTIER Via Monte Napoleone, 16 as Zara, H&M and Foot Locker. The street Nike and Mango all located in the most ITALY - Milan G ZARA B- LA PERLA Via Monte Napoleone, 14 shows a very limited vacancy rate and strong attractive section of the street, next to H Corso Vittorio Emanuele II - MASS TO UP MARKET H DIESEL C- HERMES Via Monte Napoleone, 12 demand for quality space. Major national and Piazza Duomo. Research BNP Paribas Real Estate Source: D- OMEGA Via Monte Napoleone, 9 PAS DE DONNEED FOOTFALL international retailers target the pedestrian E- ETRO Via Monte Napoleone, 5 Corso for flagship stores and competition A-FURLA is fierce to secure the best retail premises. F- GUCCI Via Monte Napoleone, 5/7 Corso Vittorio Emanuele II B-CARPISA Furthermore, the nearby Piazza del Liberty will G- PRADA Via Monte Napoleone, 6 E G C-NADINE host the first Apple Store in Milan city center. F H- ARMANI Via Monte Napoleone, 2 F E D-TISSOT Via Dante stands out as an important mass- G E-MAX&CO market pedestrian precinct which connects F-UNITED COLORS OF BENETTON the crowed Piazza Duomo central square D 8,598 G-ZARA H to the much visited Castello Footfall / hour H-DIESEL Sforzesco Castle. Via Dante, with A circa 70 stores (OVS, Sephora, Geox) B is currently undergoing substantial C
The most favoured choice in Germany for market entrants and “pop-up” stores
erlin is Germany’s main shopping des- across the municipal area. But this is something tination. No other German city is more that retailers actually consider a major advan- cosmopolitan or attracts greater numbers tage, because the diversity enables them to of tourists. Nevertheless, in the German address specific target groups. One clear-cut Bfootfall ranking, Berlin’s shopping streets are in sign of the dynamism of the retail scene here midfield placing only. The reason for this is the is that since 2013, Berlin-Mitte has registered wealth of different precincts spread broadly 600 lettings and openings.
Population (million) Population (million) Overnight Foreign Purchasing Power Purchasing Power City Metropolitan region Visitors (million) (per capita) - In € (per capita) - Index 3.52 5.07 4.94 19,990 146.2 Sources: City population 2016, BNP PRE Research, Sources: population 2015, Eurostat region - Metropolitan 2016, Mastercard visitors - Overnight international 2017 Global Destination Cities Index GFK 2016 with UE 42=Base 100 power, - Purchasing
RETAIL BNP Paribas Real Estate 27 BERLIN
Zoological Garden , Footfall (pedestrians per hour) Berlin Zoo Aquarium Day of count : 10.06.2017 Railway Station, Metro and S-Bahn Rent €/sqm/month From Mass Market to Up Market STILWERK TAUENTZIENSTRASSE 320 Mixed (Mass Market to Luxury) Department Store BIKINI BERLIN Shopping Center Luxury Kaiser Wilhelm Memorial Church KURFÜRSTENDAMM 240 0 200 400 m NEUES KRANZLER ECK EUROPA-CENTER Shopping Center Shopping Center ROSENTHALER STRASSE 120 TAUENTZIENSTRASSE Prime rent without key money for a store unit Uhlandstrasse 7,095 Metro 6,609 Kurfuerstendamm KARSTADT Metro Department Store 1,414 KADEWE Bahnhof Wittenbergplatz KURFUERSTENDAMM Department Store Metro
Hackescher Markt District Weinmeisterstrasse ROSENTHALER STRASSE Metro HACKESCHE HÖFE NEUE SCHOENHAUSER Retail Passage STRASSE 2,050 3,762 ALEXANDERPLATZ Monbijou Park GALERIA KAUFHOF Rent €/sqm/month Department Store Hackescher Markt TAUENTZIENSTRASSE 320 Tramway and S-Bahn DIE MITTE KURFÜRSTENDAMM 240 Alexanderplatz Railway Shopping center Station, S-Bahn and Metro 4,431 Aquadom ROSENTHALER STRASSE 120 Museum Sea Life Fernsehturm ALEXA BNP Paribas Real Estate - Q2 2017 Island Shopping Center 0 100 200 m RATHAUS PASSAGEN
Shopping Center ©BNPPRE Research - D&A Tauentzienstrasse, A Rosenthaler Strasse and Alexanderplatz 3,762 Whilst the Kurfürstendamm label ba&sh on Neue Schönhauser Strasse and Footfall / hour and Tauentzienstrasse are eyewear brand Ace&Tate on Alte Schönhauser GERMANY - Berlin the two most important Strasse established operations in Hackescher Rosenthaler Strasse - Footfall: 3 762 shopping streets in City Markt. The most heavily frequented Hackescher Centre West, Berlin also Markt location, with almost 3,800 shoppers an H- UNIQLO offers numerous Rosenthaler micro-locations Straße 42 of hour, is still Rosenthaler Strasse. F- PUMA significance Rosenthaler to retailers. Definitely Straße 40-41 deserving Southeast to Hackescher Markt is the well- B- HUNKEMÖLLER HKMX-STORE a mention Rosenthaleris Hackescher Straße Markt ,50 not least known Alexanderplatz square, which features B G- NIKE STORE because of Hackescherthe role it plays Markt for the market2-3 entry two new retailers in Germany: Topshop in C- HUGO BOSS of international Rosenthaler operators. Straße 49 Galeria Kaufhof department store and Mister C Rosenthaler Strasse D- MANGO Retailers that Rosenthaler have entered Straße here are 34-35 El Ganso, Spex in the Alexa mall. A- GRANIT Eleven Paris Rosenthaler and the world’s Straße first 13 Adidas The footfall count in this precinct was just over D E- OAKLEY Running-Store Rosenthaler on Münzstrasse. Straße The 34-35 fashion 4,400 per hour. E
A GRANIT E OAKLEY
B HKMX-STORE F PUMA F C HUGO BOSS G NIKE STORE G D MANGO H UNIQLO H
Source: BNP Paribas Real Estate Research
28 BNP Paribas Real Estate RETAIL Kurfürstendamm (East) Kurfürstendamm (West) With a length of 3.5 kilometers, the Kurfürstendamm is one of the The luxury section of the longest shopping streets in Germany and no other location in Ku'damm hosts prestigious the country presents a greater range of shopping from mass-market brands like Gucci, Escada (East part) to luxury (West part). and Budapester Schuhe. In New premises in direct vicinity to the boulevard are maintaining a this year’s count, it registe- large variety of offer. Notable examples here include the landmark building Upper red around 1,400 pedestrians an hour com- West which opened in spring, the Zoom with anchor tenant Primark, as well as the pared to the 6,600 figure on its Eastern planned Mall of Ku'damm on former Karstadt site. In the future, these developments mass-market section. could have a positive impact on the footfall figures in this top precinct.
A TOMMY HILFIGER F HUGO BOSS
GERMANY - Berlin B COS G C&A Kurfürstendamm - Footfall: 6 609 C ASICS H H&M H A- TOMMY HILFIGER KURFÜRSTENDAMM 217 D TESLA F Kurfürstendamm (East) B- COS KURFÜRSTENDAMM 217 E APPLE D C- ASICS KURFÜRSTENDAMM 26A Source: BNP Paribas Real Estate Research E D- TESLA KURFÜRSTENDAMM 26A C G E- APPLE KURFÜRSTENDAMM 26 F- HUGO BOSS KURFÜRSTENDAMM 25 G- C&A KURFÜRSTENDAMM 227-229 B H- H&M KURFÜRSTENDAMM 237 6,609 A Footfall / hour
Population (million) Population (million) Overnight Foreign Purchasing Power Purchasing Power AMSTERDAM City Metropolitan region Visitors (million) (per capita) - In € (per capita) - Index 0.83 2.68 8.36 18,850 137.9 Sources: City population 2016, BNP PRE Research, Sources: population 2015, Eurostat region - Metropolitan 2016, Mastercard visitors - Overnight international 2017 Global Destination Cities Index GFK 2016 with UE 42=Base 100 power, - Purchasing
A shift of Amsterdam’s core retail centre
Central station Footfall (pedestrians per hour) Day of count : 10.06.2017 From Mass Market to Up Market Mixed (Mass Market to Luxury) Luxury NIEUWENDIJK 6,588
0 200 400 m Dam DE BIJENKORF Department Store HUDSON’S BAY Rent €/sqm/month Department Store KALVERSTRAAT 258 7,888
KALVERSTRAAT LEIDSESTRAAT 217 KALVERTOREN PIETER CORNELISZ HOOFTSTRAAT 213 Shopping Center
Prime rent without key money for a store unit LEIDSESTRAAT 4,352 Leidseplein ©BNPPRE Research - D&A
PIETER CORNELISZ HOOFTSTRAAT Vondelpark 1,768 Rijksmuseum Pieter Cornelisz Hooftstraat Van Gogh Museum, Stedelijk Museum P.C. Hooftstraat, strategically located in the affluent Oud Zuid district, is the Netherlands' main luxury high msterdam's market performance remains strong, driven by continued street with a footfall of over 1,750 entry of new retailers, growth in consumer spending and tourism. pedestrians per hour. The supply side is active with the upcoming completion of deve- Footfall doubled over the past four years after the lopment schemes to meet persistent high demand for large units. opening of new stores, including the iconic Chanel AThe main shift is being observed downtown, where the retail centre of brand, and the improvement of public space there. gravity is gradually moving towards the Rokin/Nieuwendijk/Kalverstraat The rising number of high-wealth foreign tourists area. Gravity shift is a direct result of the completion of the Hudson's Bay visiting Amsterdam undoubtedly contribute to the flagship store (Rokin area) of Nowadays (Nieuwendijk area) and of Rokin strong performance of the area. Consequently, persistent Plaza (Rokin/Kalverstraat area). demand from new retailers is challenging landlords and The inauguration of a new metro line in 2018 - with a stop at Rokin - will developers to create additional retail floor space in further accelerate the shift. Amsterdam's luxury high street.
30 BNP Paribas Real Estate RETAIL 7,888 A NETHERLANDS- Amsterdam Footfall / hour B A-FOREVER 21 Kalverstraat 11 B-PULL AND BEAR Kalverstraat 13-17 Nieuwendijk, Kalverstraat and Leidsestraat C-URBAN OUTFITTERS Kalverstraat 31-33 With a footfall of nearly 7,900 This slight decline is possibly due to the C D-MANGO Kalverstraat 35-37 per hour, Kalverstraat shift of Amsterdam's core retail centre to the E-TOPSHOP Kalverstraat 48/52 heads up the country’s Nieuwendijk/Kalverstraat/Rokin area. D F-ZARA Kalverstraat 66-72 busiest high streets. Retail Although reduced footfall may also be the E G-FOOTLOCKER Kalverstraat 100-106 attractiveness and traffic result of temporary side effects from ongoing H-H&M Kalverstraat 114 have increased over the past couple of years major redevelopments at the former V&D because of economic recovery and the opening department store and Kalvertoren shopping of prime new flagship stores (Forever 21, Pull centre near Leidsestraat. & Bear, Urban Outfitters and Topshop). F Located north of Kalverstraat and extending A FOREVER 21 directly from it, Nieuwendijk ranks 2nd best in terms of traffic with nearly 6,600 pedestrians B PULL AND BEAR per hour. C URBAN OUTFITTERS The street recorded tremendous growth in D MANGO flows, even higher than Kalverstraat over the last two years, due to the completion of the E TOPSHOP G
Nowadays project (Primark, Zara and JD Sports F ZARA Kalverstraat flagship stores). H G FOOT LOCKER In the South, Leidsestraat’s at 4,350 per hour H H&M
is experiencing loss of momentum. Research BNP Paribas Real Estate Source:
RETAIL BNP Paribas Real Estate 31
Population (million) Population (million) Overnight Foreign Purchasing Power Purchasing Power ATHENS City Metropolitan region Visitors (million) (per capita) - In € (per capita) - Index 0.66 3.82 2.68 10,801 79.0 Sources: City population 2016, BNP PRE Research, Sources: population 2015, Eurostat region - Metropolitan 2016, Mastercard visitors - Overnight international 2017 Global Destination Cities Index GFK 2016 with UE 42=Base 100 power, - Purchasing
Prime streets fueled by foreign demand
Footfall (pedestrians per hour) Day of count : 10.06.2017 From Mass Market to Up Market Mixed (Mass Market to Luxury) Luxury ATTICA 0 50 100 m Department Store 792
CITYLINK Shopping Center ERMOU STREET VOUKOURESTIOU STREET
Rent €/sqm/month 3,014 Parliament VOUKOURESTIOU STREET 200
ERMOU STREET 180 Metro Syntagma Square Average rent for a store unit
National Park ©BNPPRE Research - D&A
Acropolis Voukourestiou Street emand focused mainly on premium Ermou Street with a Voukourestiou Street is Athens' most luxurious vacancy rate close to zero and ongoing entries like the fashion and accessories destination with, for launch of Forever 21 in Greece. Key downtown areas instance, jewellers such as Bulgari, Cartier and (Kolonaki, Panepistimiou and Stadiou Streets) are taking Kessaris, and exclusive brands like Dior, Prada, Dadvantage of larger numbers of tourists visiting Athens. Out of Louis Vuitton, Hermès, Tod's and Zadig et Voltaire. town, major high street sectors (Kifissia, Sotiros/Piraeus and Part of Voukourestiou Street is formed by one of the four streets which Glyfada) register higher demand due to lack of available space. used to enclose the former large building of the Army Pension Fund, Rental levels reached their bottom in 2016. Given the combi- now transformed into Attica Department Store and the headquarters nation of low vacancy in prime areas and readiness to expand of the Piraeus Bank. Three theatres and cafés plus restaurants, among by retailers, rental increase is on the horizon. This prospect which is the well-known café Zonars, complement this luxury pitch. itself may prompt moves by retailers aiming to take advantage Anchoring this area that hosts the majority of the high-end boutiques of current rent conditions. in central Athens, is the Athens City Link mall.
32 BNP Paribas Real Estate RETAIL Ermou Street Ermou Street is a thriving pedestrian destination GREECE - Athens A BERSHKA D SEPHORA combining modern retail activity with old-town traditional shops with a lively atmosphere. Its bustling B FOREVER 21 E MANGO A-BERSHKA 50 pavements are lined with large stores, boutique C MARKS & SPENCER F H&M designer shops, little snack bars and coffee shops. B-FOREVER 21 46 G ZARA The street has long been one of the most expensive to rent in Europe, C-MARKS & SPENCER 33 H NIKE STORE
it has been regaining momentum and in 2017, it is again the most Research BNP Paribas Real Estate Source: D-SEPHORA 24 expensive street in Greece. E-MANGO 20 Ermou Street features many international F-H&M 11 retail chains such as Forever 21, Mango, G-ZARA 9 Benetton, Marks & Spencer, H&M, Zara, A H-NIKE STORE 1 B Stradivarius, Oysho, Nike, Bershka, Sephora, Tiger, Mothercare and Adidas D E C among others. The influx of retailers Ermou means that vacancy rates are almost zero. F G H 3,014 Footfall / hour
Population (million) Population (million) Overnight Foreign Purchasing Power Purchasing Power BARCELONA City Metropolitan region Visitors (million) (per capita) - In € (per capita) - Index 1.61 5.43 8.36 18,776 137.3 Sources: City population 2016, BNP PRE Research, Sources: population 2015, Eurostat region - Metropolitan 2016, Mastercard visitors - Overnight international 2017 Global Destination Cities Index GFK 2016 with UE 42=Base 100 power, - Purchasing
Tourism drives strength of retail axis
Casa Batlló, Casa Lleó Morera PASSEIG DE GRACIA Rent €/sqm/month Passeig de AV. DEL PORTAL DEL ANGEL 275 Gracia RAMBLA DE CATALUNAMetro PASSEIG DE GRACIA 245
CARRER DE PELAI 175
10,132 Prime rent without key money for a store unit EL CORTE INGLES 4,468 Department Store AV. DEL PORTAL DEL ANGEL EL TRIANGLE Shopping mall Universitat Catalunya Metro Metro CARRER DE PELAI 4,810 10,216
Barcelona Cathedral, Old touristic district 3,914
Footfall (pedestrians per hour) LA BOQUERIA CARRER DE LA Day of count : 10.06.2017 Open air food Market PORTAFERRISSA From Mass Market to Up Market Mixed (Mass Market to Luxury) Luxury Gran Teatre del Liceu 0 100 200 m ©BNPPRE Research - D&A
eing a cosmopolitan and lifestyle metro- polis, Barcelona boasts a vivid tourism Passeig de Gràcia industry. Ranked in the Top 5 European With a record footfall, the Paseo takes advantage of the pre- destinations by international overnight sence of the two most visited attractions: Casa Batlló and Bvisitors (1) in 2016, it has welcomed 2.68 million Casa Mila (by Gaudí). It is Barcelona’s most prestigious street, cruise passengers (+5.6% compared to 2015) home to the highest number of exclusive brands. Luxury ac- and 44 million travelers at El Prat airport(2). counts for 66% of the offer with more than ninety stores inclu- Successful startups, research centres and multi- ding Bulgari, Furla, Manolo Blahnik and Valentino. The rest of the street positions national firms intensify a vivid retail scene with from mass-market to premium, with well-known international chains including the largest luxury sector after Madrid. flagship stores of Apple, Zadig & Voltaire, Nespresso and Uniqlo. (1) Sources: Mastercard Global Destination Cities Index 2017, (2) Barcelona Port and Barcelona Airport Vacancy is low and if a good opportunity emerges, it will see intense competition.
34 BNP Paribas Real Estate RETAIL Avenida del Portal del Angel, Carrer de la Portaferrissa, Rambla SPAIN - Barcelona de Cataluña and Carrer de Pelai The rest of downtown Barcelona’s prime pitches are A-NIKE STORE Passeig de Gràcia 29 genuine mass-market, taking around 70% of the offer B-COS Passeig de Gràcia 27 and stretching over a large geographic area. A , C-ZARA Passeig de Gràcia, 16 B 10 132 Passeig de Gràcia Portal del Angel is extremely busy and in the heart D-H&M Passeig de Gràcia, 11 Footfall / hour of the medieval city. Leading to the old Cathedral, E-& OTHER STORIES Passeig de Gràcia, 8-10 this pedestrianised street features a pure mass-market profile (91% F-EMPORIO ARMANI Passeig de Gràcia, 4 C of stores) with no vacancy and the highest rent level: €275/sqm/ G-APPLE STORE Passeig de Gràcia, 1 E month. The avenue extends to Carrer de la Portaferrissa, a narrow H-EL CORTE INGLES Plaça de Catalunya, 14 F cobbled axis with varied retailers (many young fashion stores are here) D occupying smaller units. La Rambla de Cataluña is the city’s popular night-and-day family G shopping promenade. As with Plaza de Cataluña, this street has H experienced significant development in recent years and retail presence has strengthened. The retail scene includes a majority of bars and A NIKE STORE E & OTHER STORIES restaurants as well as mass-market fashion stores. Compared to the previous streets, La Rambla presents affordable rent levels for a B COS F EMPORIO ARMANI newcomer to the market. C ZARA G APPLE STORE Carrer de Pelai benefits from a strategic location close to Plaza de D H&M H EL CORTE INGLES Cataluña main square and to the University; its offer complements the
Source: BNP Paribas Real Estate Research one of Il Triangle prime mall.
RETAIL BNP Paribas Real Estate 35
Population (million) Population (million) Overnight Foreign Purchasing Power Purchasing Power BRUSSELS City Metropolitan region Visitors (million) (per capita) - In € (per capita) - Index 1.19 2.49 2.39 17,478 127.8 Sources: City population 2016, BNP PRE Research, Sources: population 2015, Eurostat region - Metropolitan 2016, Mastercard visitors - Overnight international 2017 Global Destination Cities Index GFK 2016 with UE 42=Base 100 power, - Purchasing
Essentially cosmopolitan, the city is a key spotlight in Europe
Footfall (pedestrians per hour) Day of count : 10.06.2017 From Mass Market to Up Market Mixed (Mass Market to Luxury) Royal Park Luxury and Castle 2,370 Porte de Namur GALERIE TOISON D’OR 0 200 400 m Metro Shopping Center
GALERIE LOUISE CITY2 Central TOISON AV.D’OR DE LA Rogier Shopping Center WATERLOOBD DE Shopping Center Metro, Tramway Railway Station INNO Department Store RUE NEUVE Museum THE MINT District 358 6,772 Shopping Center AVENUE LOUISE Stock Exchange Louise Metro, Tramway 3,183 De Broukere Grand Place Square Metro, Tramway INNO GALERIES ANSPACH Department Store Shopping Center Place de la Bourse Sainte-Catherine Metro Square Rent €/sqm/month 1,328 RUE NEUVE 163 BOULEVARD DE WATERLOO 138
AV. DE LA TOISON D'OR 108 RUE ANTOINE DANSAERT Prime rent without key money for a store unit ©BNPPRE Research - D&A
ome to European institutions and many multi- national headquarters, Brussels is a cosmopo- Boulevard de Waterloo litan city. It is a defacto capital for Europe and is enriched by cultural and economic inflows Remote from massive flows, the Boulevard stands, along with Hfrom around the world. southern Avenue Louise, as the most prestigious and “chic” In retail, the city is engaged in long lasting and fierce address in the city. Prized by high-wealth customers, competition with Antwerp for first place in Belgium. therefore a low traffic, it hosts exclusive brands with Good at attracting innovative newcomers, Brussels activities like haute-couture, jewels, designers and fine food. maintains prime position. The future opening of The Offers include Bulgari, Salvatore Ferragamo, Christofle, Hackett London, La Mint will put high street retail in the spotlight. Maison du Diamant and the brand new “Rolex, by Hall of Time” store.
36 BNP Paribas Real Estate RETAIL A SPRINGFIELD
B PRIMARK
C ZARA
D H&M
Rue Neuve, Rue Antoine Dansaert, E C&A Avenue de La Toison d’Or and Avenue Louise F FOOT LOCKER G NIKE Lower downtown borders Upper downtown, whilst not so famous for H GALERIA INNO the most visited tourist sites tourists, stands out as a powerful sector locally. Research BNP Paribas Real Estate Source: and especially the Grand Avenue Louise (northern part), a very busy Place square with its historic street due to Louise metro station, is a H BELGIUM - Brussels baro-que guild houses. landmark for premium brands. PAS DE DONNES FOOT FALL High flows and the largest mass-market high The rather short avenue focuses on fashion street offer in Brussels mean Rue Neuve is the mostly, with tenants such as Karen Miller, Rue Neuve A- SPRINGFIELD busiest street 8-12 .rue It is Neuve anchored by numerous Marina Rinaldi and 1.2.3. B- PRIMARK flagships 15including rue Neuve Primark that opened in Avenue de la Toison d’Or is benefitting G C- ZARA 2014 plus 24-28 City2 rueshopping Neuve centre and Inno from renewed strength after the D- H&M Department 17-21 Store. rue The Neuveupcoming opening of the opening of Le Toison D’or (Apple E- C&A refurbished 27-29 The Mint rue passageNeuve will introduce a 1,600 sqm; Zara 4,000 sqm; F- FOOT LOCKER new focal 31-33point. Up-scale rue Neuve retailing concentrates Bodum 500 sqm). , around Rue Antoine Dansaert/Place Sainte- Boasting this "state-of-the F 6 772 G- NIKE 1000, Rue Neuve 54 Catherine, a picturesque cluster renowned for art" scheme in addition E Footfall / hour H- GALERIA INNO 111-123 rue Neuve good restaurants near the square. With lower to cinemas, the C D flows than Rue Neuve, Rue Antoine Dansaert Avenue is receiving B features “affordable luxury” fashion stores the advantages of and designers such as IKKS, Sarah Pacini, increased profile. A Kartell, Sandro and Zadig et Voltaire.
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Population (million) Population (million) Overnight Foreign Purchasing Power Purchasing Power BUDAPEST City Metropolitan region Visitors (million) (per capita) - In € (per capita) - Index 1.76 2.98 3.67 6,963 50.9 Sources: City population 2016, BNP PRE Research, Sources: population 2015, Eurostat region - Metropolitan 2016, Mastercard visitors - Overnight international 2017 Global Destination Cities Index GFK 2016 with UE 42=Base 100 power, - Purchasing
Improved economy is reviving retailer demand and creating new supply
Opera Miniversum Museum 762 Oktogon Metro VÖRÖSMARTY NO. 1 Vörösmarty Tér Retail Gallery Metro ANDRÁSSY ÚT PÁRIZSI NAGYÁRUHÁZ Department Store VACI1 Deák Ferenc Tér Retail Gallery Metro FASHION STREET 2,030 Rent €/sqm/month ANDRÁSSY ÚT 120
VÁCI UTCA VÁCI UTCA 110
Footfall (pedestrians per hour) Prime rent without key money for a store unit Day of count : 10.06.2017 From Mass Market to Up Market Mixed (Mass Market to Luxury) Luxury 0 100 200 m Andrássy út ©BNPPRE Research - D&A The 2.5 km wide and spacious Andrássy Út Avenue is the unique luxury spot in the heart etail turnover, growing significantly since 2014, is foste- of Budapest. Most of the high-end prime fashion red by low inflation, real wage growth, rising consumer names - Louis Vuitton, Burberry, Gucci, Polo confidence and an improving labour market. FINA World Ralph Lauren and Moncler - have opened stores Championships had a powerful effect on tourism resulting over the last couple of years. In 2016, Michael Kors joined the list Rin sharp growth of overnight stays in summer 2017. of retailers operating on this elegant street that is bordered with Such factors make up for the less favourable economic environ- villas and neo-renaissance mansions. ment that impacted negatively on the supply structure in earlier Pedestrian traffic concentrates on the first third of the avenue, years. In 2016, the refurbishment of the Váci 1 marked the return where famous luxury shops and tourist attractions are situated, like of the “development spirit” in downtown Budapest. the gorgeous Hungarian Opera House building.
38 BNP Paribas Real Estate RETAIL HUNGARY - Budapestv a
A-H&M 3 B-ZARA Váci utca 6 C-L’OCCITANE 11b Váci utca Street is the central point for D-FOOTLOCKER 11 mass-market in the heart of Budapest and Váci utca is historically known as a shopping E-RESERVED 14 A , promenade, which attracts tourists 2 030
F-SALAMANDER 17 Lorem ipsum B Footfall / hour G-PANDORA 18 especially in its northern section. The flow takes advantage of direct proximity to the Central Business H-MANGO District, and 19 to major tourist attractions, like St. Stephen's Basilica and the Ferris-wheel in the C A H&M Erzsébet Square. In December, the flow increases E thanks to the Christmas market across Váci utca B ZARA D and Vörösmarty Square. C L’OCCITANE In 2016, H&M opened their second largest store F D FOOT LOCKER G in Europe in the newly refurbished Váci 1, which is a boutique office and retail building under E RESERVED H historic preservation. It has complemented the F SALAMANDER
mass- to up- market offer which counts major G PANDORA international retailers such as Mango, Bershka, H MANGO Esprit, Geox and Lacoste. Research BNP Paribas Real Estate Source:
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Population (million) Population (million) Overnight Foreign Purchasing Power Purchasing Power COPENHAGEN City Metropolitan region Visitors (million) (per capita) - In € (per capita) - Index 0.59 1.97 1.66 22,354 163.5 Sources: City population 2016, BNP PRE Research, Sources: population 2015, Eurostat region - Metropolitan 2016, Mastercard visitors - Overnight international 2017 Global Destination Cities Index GFK 2016 with UE 42=Base 100 power, - Purchasing
Innovation, local demand and tourism boost retail scene
Nørreport Station
Ørstedsparken 6,964 KØBMAGERGADE
ILLUM Department Nyhavn Canal Store ØSTERGADE Kongens Nytorv 8,094 7,494 Metro Footfall (pedestrians per hour) Day of count : 10.06.2017 MAGASIN DU NORD (STRØGET) Department Store From Mass Market to Up Market AMAGERTORV Mixed (Mass Market to Luxury) Luxury 0 100 200 m FREDERIKSBERGGADE
5,252 Slotsholmen Island, Museum District National Museum
TIVOLI Gardens and Central Railway Station Outdoor Leisure Park ©BNPPRE Research - D&A
Rent €/sqm/month nown as the gateway to the Scandinavian region, Copenhagen shows modernity AMAGERTORV 263 and new retail trends. Despite a context where e-commerce sales are expanding rapidly, local retail activity thrives because of its inventive offering favoured by an ØSTERGADE 224 increasing population. KØBMAGERGADE 202 KTourism is also on the rise, especially with the growing presence of high purchasing power Prime rent without key money for a store unit Exchange rate DKK/€: 0,1344 - Q3 2017 visitors from Asia. Most up-scale stores have now adapted and developed bespoke ap- proaches to provide Asian customers with first grade services. Copenhagen’s invention is continually throwing up pop-up shops and retail concepts to test out potentially larger demand.
40 BNP Paribas Real Estate RETAIL Østergade and Amagertorv
Footfall figures of Østergade and Amagertorv stand out as the highest on the famous one-kilometer-long pedestrian Strøget axis. Købmagergade With 7,494 pedestrians per hour, Østergade is an entry gate to flows on the East, by the Kongens Nytorv metro. Home to two famous and Frederiksberggade department stores (Illum and Magasin du Nord), the street boasts the most well-known fashion brands on a spectrum from high-end to mass-market, Perpendicular to Strøget, with Mulberry, Hugo Boss and Moncler at the beginning of the street, and Topshop, Købmagergade presents a H&M, Gucci and COS close to Illum. slightly inconspicuous Taking advantage of its strategic position as the central cross point of all inner position; nonetheless it city pedestrian flows, Amagertorv registers a record figure of 8,094 pedestrians per DENMARK - Copenhagenregisters a significant flow (i.e. hour. The impressive flow, reinforces its attraction to luxury as shown by the recent 6,964 pedestrians per hour) and takes relocation of Louis Vuitton, the presence of Saint Laurent (at cross point with advantage of large numbers of tourists Købmagergade) and the new Hermès shop due to open later this H-H&M especially the onesAmagertorv who visit the 23 Runde Tårn year. The area oozes luxury, around the famous Illums B-ILLUMS BOLIGHUS (Round Tower). Amagertorv 10 Bolighus Scandinavian Design anchor. F-DISNEY STORE Also an interesting Amagertorv site for mass-market 8 F G C-VICTORIA’S SECRET concepts, the street Amagertorv is attractive 3 for retailers A H&M H A-ROYAL COPENHAGENsuch as H&M, Tiger Amagertorv of Sweden, 6 Arket, Vans, C E G-GEORG JENSEN Esprit and Abercrombie Amagertorv & Fitch as4 well as for B ILLUMS BOLIGHUS B D-LOUIS VUITTON restaurants and cafés. Amagertorv 2 C DISNEY STORE Amagertorv D Very close to Rådhuspladsen/City Hall square, A E-PRADA Østergade 60 D VICTORIA’S SECRET Frederiksberggade benefits from tourist flows equally on a purely mass-market offer E ROYAL COPENHAGEN including Vero Moda, Foot Locker, Monki, Bur- F GEORG JENSEN 8,094 ger King and KFC. The Metro-ring due to open G LOUIS VUITTON Footfall / hour in 2019 with a new station at Rådhuspladsen H PRADA should make the area even more accessible. Research BNP Paribas Real Estate Source:
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Population (million) Population (million) Overnight Foreign Purchasing Power Purchasing Power DUBLIN City Metropolitan region Visitors (million) (per capita) - In € (per capita) - Index 0.55 1.85 5.51 20,170 147.5 Sources: City population 2016, BNP PRE Research, Sources: population 2015, Eurostat region - Metropolitan 2016, Mastercard visitors - Overnight international 2017 Global Destination Cities Index GFK 2016 with UE 42=Base 100 power, - Purchasing
Redevelopment projects to attract new retailers