How Active are Retailers in EMEA looks at the most popular target markets in 2017 for retailers in Europe, the Middle East and Africa (EMEA).
Retailers continue to expand their physical store networks in EMEA seeing the merits of a large store network as a major avenue to raising brand awareness. Core Western European markets are top of the agenda for 2017 despite political and economic uncertainty.
Is luxury immune to the twist ad turns of global economy?
The world of luxury continues to fascinate and intrigue, with brand names synonymous with luxury now shouting out to us from many locations around the world. CBRE has invested in research to get beneath the surface of luxury in three traditional cities across Europe: London, Paris and Milan to explore some insights from luxury consumers, along with a look at the economic impact on luxury and how they combine with retailers' strategy plans. And finally, to expand the view of luxury, we also engaged our market experts in New York, Mumbai and Lagos.
In its eighth year CBRE's How Global is the Business of Retail? will once again focus on the target markets for new brands.
We examined 50 countries and 164 cities across the world to provide a comprehensive view of the markets that international brands have been targeting.
By analysing the brand sectors that have been expanding and the flow of cross-border expansion we are able to interrogate what that means and impact is likely to have on retail markets in all the regions.
In a “sharing” or “collaborative” economy, parties provide one another access to assets or services—whether for a fee or for free—as opposed to selling and buying them outright. The sharing economy is expected to continue to develop and evolve in 2017. This is an increasingly global trend, and many countries have issued recommendations to increase its benefits and impact.
For the past five years, rapid change has taken place against a backdrop of weaker-than-normal economic growth; however, we believe it likely that growth will be stronger in 2017. The mild recession in the oil and commodities sector is over, unemployment continues to fall, and governments are starting to invest more in much-needed infrastructure upgrades.
All of the real estate sectors we review in this outlook for 2017 are in the process of reinventing themselves to accommodate technology-driven changes in business operations. Although the rate of change is rapid, it is the most exciting and interesting time to be involved in commercial real estate. In addition to macroeconomics and real estate coverage, our 2017 Global Real Estate Market Outlook has five key research themes:
In this CBRE Viewpoint we utilize the data from CBRE’s Millennials: Myths and Realities report on millennials to find out the preferences of 13,000 individuals aged 22-29 in 12 countries: Australia, Canada, China, France, Great Britain, Hong Kong, India, Japan, Mexico, Spain, USA East and West. We use the information about this key age demographic to describe the likely future of the retail industry both in physical stores and online, and how their preferences will influence the logistics market.
•BOTH PRIME HIGH STREET AND SHOPPING CENTRES SEE POSITIVE BUT SLOWING RENTAL GROWTH IN Q4
The CBRE Prime High Street rent index grew by 0.5% q-o-q and 5.0% y-o-y. There has been a consistent slowing of the rental index since Q2 2015.
•CONSUMER CONFIDENCE CONTINUED TO IMPROVE IN Q4
Consumer confidence continued to improve in Q4 from the lows witnessed after Brexit. The confident outlook has had a similar effect on retailer confidence and retail trade volumes in the last 3 months of the year.
•EUROPEAN RETAIL INVESTMENT TOTALLED €17 BILLION IN Q4, up 33% q-o-q
Germany remained the largest target market for European retail investment in Q4, however the UK has attracted more investment over 2016. Retail investment is up significantly on Q3 totals but remains down on the highs witnessed in 2015.
Placemaking is a much-discussed topic that—like “omnichannel,” “the Internet of Things,” and other ongoing trends—has become a talking point without necessarily having acquired an agreed-upon definition.
To help address this, we uncovered 22 examples of properties around the world which highlight the role that retail plays in establishing a place. Very simply, we found that placemaking is an effort to draw people to a place by creating compelling reasons for them to visit.
Expect a year of political uncertainty and the challenge of rising interest rates in Europe in 2017
Politics aside, however, the gradual tightening of some occupier markets seen in 2016 will continue in 2017, especially for better properties in the better locations
Despite a gradual turnaround in the long-term interest rate trend, there is still scope for further yield compression in prime assets as rental growth and low interest rates by historical standards continues to make property look attractive
2018 or 2019, rather than 2017 are likely to be the years when the yield cycle starts to turn
From a real estate perspective, global gateway cities offer many benefits. Their attractiveness to people and businesses means that space demand in their commercial real estate markets increases steadily over the long term, underpinning rent growth. These cities are also highly liquid markets, where real estate investments can be readily bought and sold. We have compiled this new report so that those looking to invest in one or more of the world’s great cities can quickly and easily understand pricing and market conditions.
As millennials become a larger segment of the workforce, grow in affluence and start forming their own families, it’s important to understand their true preferences and how their choices are impacting multifamily, office and retail real estate globally. To see a clearer picture of this generation chooses to live, work and play, CBRE conducted one of the most extensive and detailed global studies of millennials