The decline in economic sentiment and performance caused by the coronavirus crisis could be the trigger for a full-scale restructuring of Europe’s retail market.

The Urban Land Institute (ULI) has said that many European retail investors have not had to deal with a fundamental re-rating of the sector up until now as they are still assessing how to react to the impact of e-commerce on regional markets. This period of reflection has been extended by stable operating incomes and low interest rates, which have lessened the pressure on retail owners to sell or restructure assets. Added to that, ongoing company failures and falling rents, as well as the volume and type of space required by retailers in the future, have left owners unable to forecast whether rent levels from existing schemes would be sustainable.

“The fact that major structural change is affecting retail means it is much more challenging for investors to find their footing in the market,” says Lisette v