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French Retail Market
Overview
Q4 2019
2019 was the second-best year on record for the retail investment market with €6 billion in investments. The rental market faces continued pressure due to strong retailer demand for prime high streets and a scarcity of supply in this market segment.
- Demand for core assets is still strong. Prime rents remain at high levels: €23,500 per sq m/year for high-street retail, €2,300 per sq m/year for shopping centres and €210 per sq m/year for retail parks.
- Over €6 billion was invested in the retail market over 2019; this represents a 31% year-on-year increase and is 46% higher than the long-term average (€4.14bn).
- Domestic investors continued to dominate the market with a 65% market share. However, foreign investors continued to demonstrate confidence in the French market.
- There was no change in prime yields at the end of 2019. Levels therefore stood at 2.75% for high-street retail, 4.75% for shopping centres and 5.00% for retail parks.