2024-02-29 11:43:52
CBRE analyzed 270 locations with regard to their subsequent use or vacancies.
Vienna. Around 390 branches of large retail companies were closed in Austria from 2020 to 2023 due to insolvencies, most of them last year with 147 branches. The proportion of commercial insolvencies in all insolvencies in this country is consistently between 16 and 18 percent per year. “Insolvencies in retail are perceived more consciously, but the percentage has hardly changed: According to Statistics Austria, 17.99 percent of all insolvencies in 2019 affected retail, and in 2023 the proportion was 17.68 percent,” says Laura Holzheimer, Head of Research at CBRE. Around two thirds of all branch closures due to insolvency in the past three years affected the medium-priced fashion segment. Around 160 branch closures due to insolvencies in the fashion industry were recorded in shopping centers, around 60 in retail parks, significantly fewer in city centers or in the high street area (e.g. Wiener Graben or Kohlmarkt).
Potential for new tenants
Of the 270 business premises analyzed, 240 have been repurposed so far and 30 spaces are empty. The majority of the freed-up space is being used again by fashion chains, but discount stores are also increasingly coming onto the market and using the former fashion space, as are suppliers of accessories or beauty products. According to CBRE, it is also the discounters who have been particularly expansive recently. But here too, a market shakeout is to be expected in the near future. Pepco, which filed for bankruptcy this week, is the latest example. Over 70 branches in Austria are affected. “In the medium to long term there will be a shift in the sectors; providers of services, pick-up stations and restaurants will be added to the classic retail use. The retail market will continue to diversify in the coming years,” says Walter Wölfler, Head of Retail at CBRE.
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