MARKETBEAT

RETAIL SNAPSHOT
THE NETHERLANDS

Q3 2014

A Cushman & Wakefield Research Publication

OVERVIEW

Consumer spending in July increased for

the third consecutive month by 0.5% yearon-year, supporting a stabilisation and
return to growth. The pick-up was largest
for food, drinks and tobacco but spending
on durable good including clothing, shoes, furniture and cars was
also evident. Food and fashion retailers are still successfully
expanding in a number of locations but most retailers continue to
focus on the top five cities with a further 15 locations as potential
target markets.

OCCUPIER FOCUS

The occupier market is mainly driven by international retailers

and new entrants are predominantly focused on the Randstad
area including Amsterdam, Rotterdam, The Hague and Utrecht.
Southern European retailers are also keen to expand in southern
cities such as Den Bosch, Eindhoven and Maastricht. Prime rents
remain stable in Amsterdam and Utrecht but have come under
pressure in other cities and secondary locations.

MARKET OUTLOOK
Prime Rents:

Rents under some pressure, except for

Amsterdam and Utrecht.

Prime Yields:

Prime yields to hold firm.

Supply:

Rising availability in secondary cities. Scarce

supply in the best locations.

Demand:

International retailers focus on high streets

space in the four largest cities.

PRIME RETAIL RENTS SEPTEMBER 2014

HIGH STREET SHOPS
Amsterdam

SQ.M/YR
2,900

US$
SQ.FT/YR
340

Rotterdam

1,750

205

-2.8

0.6

The Hague

1,350

158

-6.9

-0.4

Utrecht

1,600

188

0.0

2.0

Maastricht

1,550

182

-3.1

-0.6

Eindhoven
RETAIL PARKS

1,350

SQ.M/YR
145

158
US$
SQ.FT/YR
17.0

-6.9

Supply is slowly increasing in secondary streets and cities, leading

to more collaboration between entrepreneurs and authorities in
order to curtail further rises in vacancies. Outside the top 20
cities, most main shopping areas are likely to shrink due to
increasing vacancies in retail space.

Amsterdam

INVESTMENT FOCUS

OUTLOOK

Trading in the retail sector is likely to improve before the year

end as the current pipeline comprises several larger transactions,
boosting overall volumes to well over 1 billion.

HIGH STREET SHOPS

(FIGURES ARE GROSS, %)

CURRENT
QUARTER
4.10

LAST
QUARTER
4.50

LAST
YEAR
4.50

HIGH
5.25

10 YEAR
LOW
4.00

Rotterdam

4.75

5.00

5.00

5.70

4.75

The Hague

5.00

5.10

5.10

6.00

4.75

Utrecht

5.00

5.10

5.10

6.00

4.75

Maastricht

5.00

5.10

5.10

5.65

4.75

5.00
CURRENT
QUARTER
7.60

5.10
LAST
QUARTER
7.60

5.10
LAST
YEAR
7.60

6.25

4.75
10 YEAR
LOW
6.00

Amsterdam

Eindhoven
RETAIL PARKS
(FIGURES ARE GROSS, %)
Amsterdam

HIGH
7.75

With respect to the yield data provided, in light of the lack of recent comparable market evidence in many areas of
Europe and the changing nature of the market and the costs implicit in any transaction, such as financing, these are very
much a guide only to indicate the approximate trend and direction of prime initial yield levels and should not be used
as a comparable for any particular property or transaction without regard to the specifics of the property.

RECENT PERFORMANCE
6.00%

25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%

5.50%
5.00%
4.50%
4.00%
3.50%
3.00%
Sep-04

Sep-06

Yield - Prime
Rental Growth - Prime

Sep-08

Sep-10

Sep-12

Rental growth (y/y)

As the economic recovery takes hold, consumer spending will

continue to improve. International retailers are still keen to have
a presence in the Dutch market and are dominating high streets
in the larger cities. Secondary locations, however, remain
unstable and increases in vacancy rates are possible.

-0.7
GROWTH %
1YR 5YR CAGR
7.4
1.4

PRIME RETAIL YIELDS SEPTEMBER 2014

Yields

Retail trading in the first quarter of 2014 outperformed the total

volumes seen in 2013 in the sector. However, these levels could
not be reached in the second and third quarter, as prime
investment products remain scarce. The majority of investments
deals were small scale and the total over Q3 came to merely 60
million. A pick-up in trading is however anticipated in the final
quarter with a number of transactions currently in the pipeline.

GROWTH %
1YR 5YR CAGR
0.0
4.7

Sep-14

Yield - Country Average

Rental Growth - Country Average

Source: Cushman & Wakefield

Cushman & Wakefield LLP

43-45 Portman Square
London W1A 3BG
www.cushmanwakefield.com/research

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