belgiumretailmarketview_032013

7/28/2019 BelgiumRetailMarketView_032013

http://slidepdf.com/reader/full/belgiumretailmarketview032013 1/11

Retail sales volume in Belgiumrebounced in the last quarter of 2012,making up for negative volume growthat the start of the year 2012.

After a brief period of relief and hope atthe start of the year, consumer confidence deteriorated in the lastquarter of 2012, as fears over another economic slowdown materialised andlayoffs at several large companies made

headlines in the press.

Retailer expansion continued throughout2012, with Q4 take-up adding another 102,306 m² in transactions. In total,retailers agreed terms on 316,712 m².

While letting transactions in bothhighstreets and shopping centers haveslowed down, new out-of-town retailparks have been pulling in demand.

Most development activity in 2012 and2013 is focused on out-of-town retail,with numerous schemes being marketedor coming online.

Close to €600 million have beeninvested in retail in Belgium in 2012.Noteworthy, retail outperforms all other property segments in Belgium in terms of investment volume.

Quick Links

Quick Stats

2012

Take up 214,406 m²

Prime rent €1,850 m²/y

Prime yield 4.00 %

RETAILERS CONTINUE TO EXPAND OUT-OF-TOWNDESPITE FALLING CONSUMER CONFIDENCE

Belgium RetailMarketView

2013 GDP+0.3%

UNEMPLOYMENT7.3%

RETAIL SALES+3.51%

INFLATION+2.6%

CONSUMERCONFIDENCE

CBRE ResearchMarch 2013

2012 GDP-0.2%

• The Belgian retail market hasrecorded a rise in tradingnumbers

•

Consumer confidencedeteriorated in the last quarter of 2012

• In total, retailers agreed termson 316,712 m² of leases andpurchases in 2012

• Close to €600 million havebeen invested in retail inBelgium in 2012.

600 million EUR invested in retailin 2012 (image: Esplanade II)



The Belgian retail market hasrecorded a rise in trading numbersover 2012, despite a strongdecrease in consumer confidencetowards the year-end. Amid anumber of high-profile company lay-offs, worries built over unemployment and the ability to

save money.

Retail sales volume upRetail sales volume in Belgiumrebounded in the last quarter of 2012,making up for negative volume growthat the start of the year 2012.

Especially in the months of October (+4.73%) and November (+6.61%),retail sales volume was up considerablyyear-on-year.

The end-of-year sales period inDecember was somewhatdisappointing however, as the monthlyretail sales volume conceded -0.55%as compared to December 2011.While more aggressive pricingstrategies can be one reason for thedrop in nominal volume, the quantityof goods sold was down as well.

Overall, retail sales volume in 2012increased by 3.51% nominally, and

1.15% deflated. No significantdifferences were noted betweenproduct categories, as food, fashion,home & household all advanced byapproximately 3.5% over the year 2012.

Consumer confidence down at

year-end After a brief period of relief and hopeat the start of the year, consumer confidence deteriorated in the lastquarter of 2012, as fears over another economic slowdown materialised andlayoffs at several large companiesmade headlines in the press.

More recently, consumer confidencerecovered in February 2013, ashouseholds have become moreoptimistic about the general economic

outlook.

Government to sparehouseholds in 2013?GDP growth for 2013 has been reviseddownwards, to 0.3% (from 0.6%). Thefederal government will therefore haveto identify new measures to reach therequired deficit target of -2.15 % for 2013. Instead of more taxes onhouseholds, pressure is building toundertake more structural savings.

THE ECONOMYCONSUMER CONFIDENCE IMPROVES IN FEBRUARY 2013

Source: CBRE Source: CBRE

Chart 1: Retail sales volume growth

RETAIL SALES vOLUME IMPROvEIN Q4 2012, BUT

YEAR-END SALESDISSAPOINT

Chart 2: Consumer confidence & inflation

-4%

-2%

0%

2%

4%

6%

8%

-30

-20

-10

0

10

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Consumer confidence (left) Inflation (right)

-2%

0%

2%

4%

6%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Retail sales (nominal) Retail sales (real)



3

C B R E R e s

e ar c h | B el gi um R et ai l M ar k et V i ew

M ar c h 2 0 1 3

0 m²

50,000 m²

100,000 m²

150,000 m²

200,000 m²

250,000 m²

300,000 m²

350,000 m²

400,000 m²

2007 2008 2009 2010 2011 2012

Q4 Q3 Q2 Q1

A RECORD NUMBEROF 185,641 M²IN DEALS WEREREGISTERED FOROUT-OF-TOWNRETAIL

Retailer expansion continuedthroughout 2012, with Q4 take-upadding another 102,306 m² in

transactions. In total, retailersagreed terms on 316,712 m² of leases and purchases in 2012(excluding renegotiations). Whileletting transactions in bothhighstreets and shopping centershave slowed down, new out-of-town retail parks have been pullingin demand.

Out-of-town retail schemes very popular

Demand for retail units in bothhighstreets and shopping centers hasstabilised over recent years. With nearlyno new development, retailers arelooking into a limited offer of opportunities at the best locations.

In 2012, highstreet retail attracted86,342 m² in transactions. 44,729 m²were transacted in shopping centers.

Out-of-town retail continues to grow

unabated, with new modern retailparks coming online in a number of locations across Belgium. In total, a

record number of 185,641 m² in dealswere registered.

Albert Heijn among the mostexpansive brands of 2012The international brand making themost significant impact on the Belgianretail market today is, perhapssurprisingly, in the grocery sector. AlbertHeijn, part of the Dutch Alhold Group,has some six stores open with leasessigned for a further 10 to 12.

Other retailers in full expansionconcern Hunkemöller, Veritas, Action,Rituals, ZEB and Ava Papierwaren.

DEMANDRETAILER EXPANSION CONTINUES OUT-OF-TOWN

185,641 m²

Source: CBRE

Chart 3: Take-up per quarter Chart 4: Take-up per segment

highstreets shopping centres retail warehousing

86,342 m²

44,729 m²

Source: CBRE



Table 1: Notable transactions in Q4 2012

Date Address m² Type Occupant

12/2012 8500 Kortrijk, St-Jansstraat (K in Kortrijk) 418 m² Letting Mango

12/2012 4020 Liège, Boulevard Raymond Poincaré 7 (Médiacité) 422 m² Letting Cool Cat

12/2012 9600 Ronse, Cesar Snoecklaan 51 (Shopping Ronse) 1,780 m² Letting H&M12/2012 3500 Hasselt, Hoogstraat 17-21 500 m² Extension Zara

12/2012 3500 Hasselt, Grote Markt 1 876 m² Letting Bershka

12/2012 8520 Kuurne, Ter Ferrants 6 1,000 m² Letting ZEB

12/2012 8400 Oostende, Torhoutsesteenweg 1,200 m² Letting Ava Papierwaren

12/2012 7700 Mouscron, Boulevard des Alliés (Les Dauphins) 1,405 m² Letting Maisons du Monde

12/2012 3740 Bilzen, Tongerenstraat 1,898 m² Letting Brico

12/2012 3700 Tongeren, Luikersteenweg 152 1,692 m² Letting Facq12/2012 1599 St-Pieters-Leeuw, Bergensesteenweg 306 1,117 m² Letting Ava Papierwaren

12/2012 3000 Leuven, Kolonel Begaultlaan (Van der Elst) 4,350 m² Letting Dreamland/Dreambaby

12/2012 2900 Schoten, Bredabaan 978 1,700 m² Letting X2O

12/2012 2300 Turnhout, Steenweg op Gierle 228 (Scapino Site) 1,200 m² Letting Ava Papierwaren

12/2012 1080 Bruxelles, Chaussée de Gand 1255 2,000 m² Letting Just Fit

11/2012 3000 Leuven, Diestsestraat 145 125 m² Letting CKS

11/2012 2000 Antwerpen, Huidevettersstraat 44 145 m² Letting Natan11/2012 6040 Jumet, Avenue Jules Bastin 7 (Park Redevco Jumet) 4,100 m² Letting Jardiland

10/2012 2627 Schelle, Boomsesteenweg 35 (A12 Shopping) 717 m² Letting Veritas

10/2012 1050 Bruxelles, Avenue Louise 72 300 m² Letting The Kooples

10/2012 3500 Hasselt, Demerstraat 16 300 m² Letting Paris Londres

10/2012 2800 Mechelen, Bruul 98 150 m² Letting Mick

10/2012 6010 Couillet, Route de Philippeville 10 1,134 m² Letting Ava

10/2012 5100 Jambes, Avenue Prince de Liège 115 1,000 m² Letting Vanden Borre

10/2012 9700 Oudenaarde, Gentstraat 47 (Frunpark Gentpoort) 1,842 m² Letting Albert Heijn

10/2012 8800 Roeselare, Brugsesteenweg 333 (Dino Center) 1,082 m² Letting Leen Bakker

10/2012 5100 Jambes, Chaussée de Liège 649 1,278 m² Letting Ava Papierwaren

10/2012 2400 Mol, Molderdijk 1,966 m² Letting Albert Heijn

10/2012 2400 Mol, Molderdijk 1,203 m² Letting Vanden Borre

Source: CBRE



5

C B R E R e s


M ar c h 2 0 1 3

Table 2: Most expansive retailers in 2012

7 stores11,738 m²

7 stores1,671 m²

7 stores3,791 m²

7 stores7,690 m²

6 stores630 m²

4 stores4,400 m²

6 stores5,294 m²

Source: CBRE

5 stores1,400 m²

5 stores5,795 m²



T-Forum (Tongeren)32,000 m²

Most development activity in 2012and 2013 is focused on out-of-townretail, with numerous schemesbeing marketed or coming online.

Multiple out-of-town schemescoming onlineNotable schemes include Les Dauphinsin Mouscron, the extension of thePortes de Charleroi Sud in Couillet andCrescend’Eau in Verviers.

A number of new retail schemes arecoming from Redevco. Redevco is inthe process of restructuring some of itsretail parks across the country,following the downsizing of theCarrefour network.

Limited shopping centredevelopmentWith no new shopping centre openingsin 2012, the only notable addition of new space came with the 5,000 m²

extension to the Shopping Nivellesscheme at Nivelles. The futuredevelopment pipeline is rather limited,at least until 2014 and possiblybeyond.

New shopping center projects areplagued by delays as environment andconstruction permits are increasinglydifficult to obtain. Also thecommercialisation and financing of brand new retail projects proves to bedifficult.

DEVELOPMENTMULTIPLE RETAIL PARKS BEING CONSTRUCTED

DEvELOPMENT ACTIvITY ISFOCUSED ON

OUT-OF-TOWNRETAIL



7

C B R E R e s


M ar c h 2 0 1 3

Brico Plan-it (Ghent)12,000 m²

Les Portes de Charleroi Sud (Couillet)26,000 m²

Redevco Retail Park (Flémalle)21,000 m²

Ring Shopping (Kortrijk)9,000 m²

Cascade Shopping (Drogenbos)29,000 m²

Crescend’Eau (Verviers)21,000 m²

V-Markt (Brugge)11,000 m²

Table 3: New out-of-town retail schemes (2012/2013)



RENTS STABLEOR TRENDINGUPWARDSIN PRIMELOCATIONS,

WhILE DECLININGELSEWhERE

The leasing market continues todiverge, with rents stable or eventrending slightly upwards in primelocations, while decliningelsewhere, particularly in poorer secondary and tertiary locations.

Flight to quality Demand for retail space at the primeend of the market, particularly towardsthe best highstreets and shoppingcenters, continues to propel rentalgrowth in our largest cities.

Both the Rue Neuve in Brussels and theMeir in Antwerp now trade at €1,850per sq m/year for the best 200 m²retail units. Wijnegem and Woluweboth trade at €1,400 per sq m/year

Many retailers are opting for primeretail space in an attempt to secure thebest long-term prospects for their business in an uncertain market. Thisflight to quality even exists within primezones, as variations can be recorded intrading/rental performance magnifiedto unit, not just street, level. The Meir,one of Antwerp’s main shoppingstreets, is an example where certainunits located in lower quality space are

struggling to maintain current rentlevels, often resulting in temporaryoccupation.

The development shortage in terms of shopping centers gives room to existingschemes with good locations and

proven track records, such asWaasland Shopping Center in theFlandrian region of Waasland andBelle Ile in Liège, to increase rents byanything up to 30% due to retailers’willingness to pay a premium in order to preserve their positions.

Out-of-town remains hugely popularWithin the out-of-town sector, there hasbeen a further power shift to the topquality parks that offer an attractive,

well-conceived retail and leisureenvironment, while some of the older standalone parks are struggling. Rentsin the top parks have remained broadlyat the level of €175 per sq m/year, withthe average for the sector a little below€100 per sq m/year.

RENTSRENTAL VALUES DIVERGE

Meir (Antwerp)

€1,850 per sq m/year

© S t a

d A n t w e r p e n



9

C B R E R e s


M ar c h 2 0 1 3

BOTh ThERUE NEUvE IN

BRUSSELS ANDThE MEIR IN

ANTWERP NOWTRADE AT €1,850PER SQ M/YEARFOR ThE BESTUNITS

Table 4: Rents for highstreets (for 200 m² units)

Table 5: Rents for shopping centers (for 200 m² units)

Street City 2010 2011 2012

Meir Antwerpen 1,700 euro/m² 1,750 euro/m² 1,850 euro/m²

Steenstraat Brugge 1,100 euro/m² 1,150 euro/m² 1,150 euro/m²

Rue Neuve/Nieuwstraat Brussels 1,600 euro/m² 1,700 euro/m² 1,850 euro/m²

Goulet Louise/Louizalaan Brussels 1,250 euro/m² 1,300 euro/m² 1,350 euro/m²

Rue de la Montagne Charleroi 600 euro/m² 550 euro/m² 500 euro/m²

Veldstraat Gent 1,200 euro/m² 1,300 euro/m² 1,350 euro/m²

Hoogstraat Hasselt 1,100 euro/m² 1,150 euro/m² 1,200 euro/m²

Kustlaan Knokke 800 euro/m² 775 euro/m² 750 euro/m²

Diestsestraat Leuven 800 euro/m² 850 euro/m² 900 euro/m²

Vinave d'ïle Liège 1,000 euro/m² 1,000 euro/m² 1,100 euro/m²

Rue de Fer Namur 1,000 euro/m² 900 euro/m² 900 euro/m²

Shopping center City 2010 2011 2012

Wijnegem SC Antwerpen 1,300 euro/m² 1,350 euro/m² 1,400 euro/m²

City2 Brussels 1,050 euro/m² 1,050 euro/m² 1,100 euro/m²

Woluwe SC Brussels 1,250 euro/m² 1,325 euro/m² 1,400 euro/m²

Belle Ile Liège 650 euro/m² 650 euro/m² 750 euro/m²

L'Esplanade Louvain-la-Neuve 750 euro/m² 800 euro/m² 850 euro/m²

Grands Pres Mons 700 euro/m² 750 euro/m² 800 euro/m²

Waasland SC St-Niklaas 825 euro/m² 825 euro/m² 850 euro/m²

Table 6: Rents for out-of-town retail (for 2,000 m²)

Location City 2010 2011 2012

Rue de Stalle Drogenbos 165 euro/m² 165 euro/m² 165 euro/m²

Kortrijkse Steenweg Gent 150 euro/m² 150 euro/m² 150 euro/m²Bredabaan Merksem/Schoten 165 euro/m² 170 euro/m² 175 euro/m²

Chaussée de Tongres Rocourt 130 euro/m² 130 euro/m² 130 euro/m²

t Gouden Kruispunt Tielt-Winge 150 euro/m² 150 euro/m² 150 euro/m²

Chaussée de Bruxelles Waterloo 150 euro/m² 150 euro/m² 150 euro/m²

Boomsesteenweg Wilrijk 150 euro/m² 150 euro/m² 150 euro/m²

Leuvensesteenweg Zaventem 145 euro/m² 150 euro/m² 155 euro/m²

Source: CBRE



€600 MILLIONINvESTED INRETAIL IN BELGIUMIN 2012

Close to €600 million have beeninvested in retail in Belgium in2012. Noteworthy, retail

outperforms all other property segments in Belgium in terms of investment volume.

Small is beautifulIn total, €158.5 million was invested inhighstreet retail. A noteworthy featureof this investment segment has beenthe sharp increase in the number of private investors buying retail assetsworth anything up to €3 million. Thesebuyers typically see such assets as less

risky than equity and bonds.

Larger investors are focussing onshopping centers and retails parks.

Recently, Klépierre agreed terms on thefurther extension of their Esplanadeshopping center in Louvain-la-Neuve.

With the acquisition of theCrescend’Eau in Verviers, Retail Estatesgrew its portfolio with another newretail park. Popularity of retail pushes

yields further downFurther yield compression has beennoted for all retail sectors. The besthighstreet units trade at yields between4 and 5%. Shopping centres arevalued in between 5.5% and 6% today,

while out-of-town retail is acquired atyields of 5.75% to 6.25%.

INVESTMENTRETAIL REMAINS VERY POPULAR

0 bio EUR

1 bio EUR

2 bio EUR

3 bio EUR

4 bio EUR

5 bio EUR

6 bio EUR

2005 2006 2007 2008 2009 2010 2011 2012

Offices (Brussels)

Of fices (Regions)

Industrial

Retail

Hotels & Leisure

Elderly homes

Residential

Chart 5: Investment volume (all properties in Belgium)

Source: CBRE

Chart 6: Investment volume for retail

2008 2009 2010 2011 2012

High Street Retail 292,725,830 euro 105,430,063 euro 70,481,061 euro 129,618,878 euro 158,500,469 euro

Shopping Centers 110,940,000 euro 360,000,000 euro 23,000,000 euro 199,050,000 euro 264,750,000 euro

Retail warehouses 320,930,541 euro 75,962,143 euro 138,660,000 euro 119,943,668 euro 172,210,000 euro

Total 724,596,370 euro 541,392,206 euro 232,141,061 euro 448,612,546 euro 595,460,469 euro

Source: CBRE



11

C B R E R e s


M ar c h 2 0 1 3

BELGIUM RESEARCh BELGIUM RETAIL

+FOLLOW US

GOOGLE+ FACEBOOK TWITTER

CBRE RESEARChThis report was prepared by the CBRE Belgium Research Team which forms part of CBRE Global Research and Consulting – a network of preeminent

researchers and consultants who collaborate to provide real estate market research, econometric forecasting and consulting solutions to real estate

investors and occupiers around the globe.

DISCLAIMER

CBRE s.a. confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not

doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm

independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to

the material are reserved and cannot be reproduced without prior written permission of CBRE.

CONTACTS

For more information about this Retail MarketView, please contact:

Kim verdonck

Head of Research

t: +32 2 643 33 33

e: [email protected]

Patrick Tacq Head of Retail

t: +32 3 248 68 60


Jon Collin Head of Retail

t: +32 3 248 68 60


belgiumretailmarketview_032013

Documents