MAPIC Interview: Colliers Co-Head of Retail Practice Uwe Rosse and Niccolo Suardi
The European retail region has seen a comeback in both investor and occupier interest, with US companies driving much of the recent investment volumes according to Colliers Co-Heads of Retail Practice Uwe Vosse and Niccolo Suardi.
They believe that a more recent closing of the price gap between seller and buyer expectations has helped boost transactions, with cash rich family offices in particular behind a number of the recent deals in a market where bank lending remains constricted.
“Financing from the banks is still quite constrained and they often require high equity levels of perhaps 50% to 60%, which makes leverage difficult for many traditional investors,” Rosse reflected. “That has meant that a number of family offices have stepped in because it has proven an attractive market for them.”
Niccolò Suardi, Colliers Co-Head of Retail
US capital has also entered the market, while there has been further activity among US retailers too, with many looking for expansion opportunities across Europe.
“There is no doubt that retail has rebounded and while shopping centres and retail parks have been driving the car, there is interest across all asset types,” he added.
Colliers is launching a global retail report at MAPIC and Suardi also pointed to the return of core capital after an absence in the post-pandemic years, which have largely been dominated by value-add and specialist investors. He believes that this may well signal that we are seeing the beginning of a new cycle, with a wider diversity of investment.
“This also means that investors can see the potential for stronger rents and certainly at the very least we have seen assets stabilised,” he said. “What we are seeing however is that occupiers are being very selective, with brands being more careful and doing a lot more research before they take a store or enter a new market.”
He also noted that while US brands have become increasingly active in Europe, the same is true of European retailers looking to North America for opportunities.
“There is definitely more activity from European brands in the major retail cities in the US,” he stressed.
