Impact of E-Commerce growth on retail real estate in Europe

The European e-commerce market is showing a stable growth trajectory after the significant fluctuations during the Corona pandemic: According to a recent analysis by the real estate service provider CBRE, inflation-adjusted online spending is now only about one percent below the peak level of 2021. Despite a more moderate development of e-commerce in many European countries, CBRE expects online revenues to continue rising. Particularly in the sectors of electronics, health and beauty care, as well as online grocery retail, there are growth opportunities according to CBRE.

Changes in Retail

The study highlights that online retail remains one of the central driving forces for the demand for logistics space in Europe. The increasing integration of online and offline retail is leading to a change in the requirements for retail properties. Frank Emmerich, Head of Retail Germany at CBRE, explains: “While the era of explosive growth in e-commerce is over, the structural trend remains intact. For retail properties, this primarily means a stronger polarization of the market. Retailers are increasingly concentrating their store networks on high-performing locations and are investing more in attractive flagship stores.”

www.cbre.de