Demand in the German retail premises market was again satisfactory in 2015. However, some structural changes have become apparent that are reflected in the development of supply and of rental prices. For many years, rents knew only one direction, climbing steadily, but what is evident now in most German cities is stabilisation at the prior-year level.
Concentration on the A-locations :
In particular large and international chain-store operators are increasingly uncompromising in respect of locational quality and hardly prepared at all to accept any addresses outside the highly frequented shopping streets.
In recent years, many important locations have been systematically occupied, with rising rents being accepted for the sake of achieving expansion targets.
Even successful labels feel the pressure coming from online trading, so that new openings only pay off if the new address is absolutely perfect.
Source : BNP Paribas Real Estate