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.
We live in an age of cities. In emerging markets, they are hubs of explosive growth in production and distribution facilities. In the developed world, cities have reinvented themselves as vibrant live-work-play destinations. We’ve compiled the second edition of this report so that those looking to invest in gateway cities in EMEA regions can quickly and easily understand pricing and market conditions.
Now in its 10th year, CBRE’s How Global is the Business of Retail? report identifies the target markets of international retailers globally.
International retailers targeted a wide range of new markets in 2016. 89% of surveyed cities saw at least one new international brand enter. Retailer activity increased by 2% in 2016, down from the 3.1% increase registered last year, indicating a slowdown in retailers’ global expansion. The vast majority of the top 15 cities targeted by retailers for the first time last year are mature markets.
Placemaking happens when buildings are transformed into vibrant urban spaces that offer well-being, pleasure and inspiration. Its success can be measured by improved lives, greater happiness and, when done successfully, an uplift in property values. Placemaking has many aspects, of which changes to the public realm are one of the most fundamental. Most cities devote a considerable amount of valuable land to the public realm, and many of the world’s most iconic locations are public spaces.
The architect Jan Gehl has shown how lack of attention to a high-quality public realm can blight the human experience of the built environment. Building on that work, this study looks more closely at the relationship between public realm and property values by examining the impact on real estate value of good public-realm interventions.
The study is a collaborative analysis using the Gehl methodology to assess the human experience of place, and CBRE data to assess the effect of public-realm interventions on property values. We review 11 placemaking initiatives that have a specific public-realm intervention at their heart to demonstrate the value of placemaking in urban environments in the 21st century.
According to CBRE Research’s most recent Global Shopping Centre Development report, 12.5 million sq. m. of shopping center space was added globally in 2016, with most coming to market in Asia. Moreover, of the 33.5 million sq. m. of space under construction around the world as of the end of 2016, 26.6 million sq. m. was underway in Asia Pacific, with construction activity in more than 90% of the Asian cities surveyed. Overall, caution among investors and occupiers and significant market saturation in many markets globally have slowed shopping center construction. At the same time, strong competition among landlords and the increasing impact of e-commerce have led to delayed center openings, or center opening without being fully occupied.
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.