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
