CANNES, 18 November 2015 – CBRE Global Investors is experiencing strong consumer confidence across its continental European portfolio on the back of falling consumer goods prices and higher wage growth.
The company notes positive sales growth reported by retailers in its portfolio in 11 out of the 13** continental European markets in which it is invested. Spain, Portugal, Netherlands, Poland and Czech Republic are seeing particularly strong year-on-year growth.
Florencio Beccar, Head of Retail for CBRE Global Investors, said: “We have definitely moved on from describing consumer growth as ‘patchy’ to a picture where we are seeing momentum across most of the continental markets in which we invest. This is being driven by falling consumer goods prices and higher wage growth but also by consumer behaviour. It appears that appetite to spend has returned as soon as people can afford to do so.”
The retail sectors experiencing the most growth reflect a move towards discretionary spending on non-basic items as well as leisure. While staples such as household goods and pharmacy spending showed strong growth, there were significant increases year-on-year for cinema, restaurants and bars, accessories and specialist electronics.
Marije Braam, Head of EMEA Retail Research, said: “The figures indicate that consumers are now treating themselves alongside their basic shopping needs in our centres. The high spending on cinema and eating out also underscores the growing role that leisure is playing in successful shopping centres.”
The strong consumer growth has translated into strong leasing activity for the company in its centres. It has signed new leases totalling 181,000 sqm across continental Europe so far in 2015.
CBRE Global Investors is the leading retail investment manager in EMEA with EUR14.1 billion of non-listed retail assets under management with 679 retail assets (of which 72 are shopping centres) across 15** countries and over 6,800 retail tenants.
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About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $86.0 billion in assets under management* as of September 30, 2015. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 70,000 employees in more than 400 offices (excluding affiliates) worldwide as of September 1, 2015. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.
** Sales figures only included for 13 out of 15 locations in which CBRE Global Investors invests. Only includes continental Europe and excludes one country where the comparable data is not available.