Europe’s retail property investment falls in first nine months of 2017

Europe’s retail property investment falls in first nine months of 2017

Retail has been Europe’s least successful commercial real estate sector in terms of attracting investment this year as fast-growing online commerce reduces the appeal of shopping centers that are not prime destinations, according to Real Capital Analytics (RCA).

Investors acquired €34.7 billion ($40.36 billion) of retail properties in the first nine months of 2017, a 15 percent drop from the same period a year ago. Retail property transactions in the same period were 20 percent below the sector’s five-year average, while July-September was the sector’s weakest quarter for deals since the second quarter of 2013.

Tom Leahy, RCA’s senior director of EMEA analytics, said: “Online commerce is polarizing investment in Europe’s retail property sector and this is particularly pronounced for shopping centers. Large, dominant centers in strong catchments continue to attract buyers, whe