The Wall Street Journal / December 1st, 2015
The Wall Street Journal reports: Retail sales volume in Europe has been up all year, according to Real Capital Analytics (RCA), a commercial real estate data and analytics firm. According to RCA, total retail volume hit €64 billion as of the end of November, making 2015 a record since the global financial crisis.
With interest rates still low, investors are finding commercial real estate to be an attractive asset, with a particularly strong interest in the retail sector. In contrast, during the economic downturn, investors shied away from the European retail market. The rise in demand highlights investors’ desire to find properties that are reasonably priced and have expected growth in cash flow through higher rents and occupancies.
Investors in Europe are beginning to look to peripheral markets where they can purchase properties at yields much higher than the top retail markets that are further along in their economic recoveries. Spain, in particular, has been attracting investors this year because it is on track to have its strongest economic performance since 2007.
According to Eurostat, retail sales in the European Union were up 3.3% this past quarter in comparison to the same time period in 2014. The rise in retail sales and the economic improvements in many European countries have increased investor confidence.
View the full article in The Wall Street Journal: European Retail Sales Up