1

CBRE Global Research and Consulting

Netherlands Retail
MarketView
2013 H2
SUPPLY
6.9% Y-ON-Y
PRIME YIELD HIGH STREET
10 BP Y-ON-Y
PRIME RENT G4 (AVERAGE)
-9.4% Y-ON-Y
INVESTMENT VOLUME
-17% Y-ON-Y
Consolidation in the lower
segment continued
While generally retailers are
postponing expansion plans, there
are still exceptions. Primark was still
looking for suitable retail units in
the Netherlands. Inditex tried to
strengthen its position in the market
by opening among others new
Zara stores. The lower segment
seizes chances on the letting
market, as is also evidenced by in
particular H&M, Action, Big Bazaar,
Xenos, Wibra and Op=Op
Voordeelshop, who all rented
several retail units. Noteworthy is
also that two German discounters
have entered the Dutch market:
TEDI (1 euro discounter) and KIK.
Both rented several retail units in
different cities.
Also in search for retail units were
drugstores particularly Kruidvat,
De Tuinen and Trekpleister and
supermarkets. As for organic
supermarkets: their number is
steadily increasing in the last few
years. As for 2013, Ekoplaza was
the most active player and opened
several new stores.
Similar to previous years, the crisis
did not scare off luxury retailers.
Among others Moncler, All Saints,
Christian Dior, Karl Lagerfeld,
Prada and Kooples have opened a
first Dutch brand store in 2013.
Such luxury retailers virtually all
signed for units at luxury high street
P.C. Hooftstraat in Amsterdam. As
a result, P.C. Hoofstraat - contrary
to other high streets in the country -
was able to realise a rental growth in
2013. An exceptional transaction was
the letting of a retail unit at P.C.
Hooftstraat to Tesla Motors.
Concentration trend persisted
The largest letting deal of 2013
occurred at home furnishing mall
Doemere in Almere: Multi Bazaar
signed here for 7,700 sq m of retail
space. Primark was responsible for
the largest letting deal in the inner
city: it rented a retail unit of 5,380 sq
m in Zoetermeer. Another large inner
city transaction was concluded by
Zara who rented 5,000 sq m in new
project De Markies in The Hague
which will also accommodate Marks
& Spencer and H&M. Retailers were
focusing on larger cities, cities with an
increasing population, a strong inner
MARKET SHOWS FURTHER POLARISATION AND CONSOLIDATION
Chart 1: Economic Indicators
city and with a regional role. The big
cities of Amsterdam, Utrecht and
Rotterdam attracted most tenants,
with Amsterdam and Utrecht taking
the lead (roughly 60 transactions).
The Hague, however, attracted fewer
tenants (34 new leases).
At a respectful distance followed the
large provincial cities of Breda,
Eindhoven, Groningen and
Maastricht (roughly 30 deals), in turn
followed by cities with, generally, a
somewhat smaller role as retail
destination, such as Arnhem,
Amersfoort, Apeldoorn and
Nijmegen. Despite a much smaller
retail stock, Leiden was able to attract
almost as many new tenants as
Arnhem or Apeldoorn.


Source: Oxford Economics
-6,0
-4,0
-2,0
0,0
2,0
4,0
6,0
8,0
10,0
'05 '06 '07 '08 '09 '10 '11 '12 '13E '14E '15E '16 E '17 E '18 E
%

GDP Consumer prices Unemployment Consumption
2
2
0
1
3

H
2






T
h
e

N
e
t
h
e
r
l
a
n
d
s

R
e
t
a
i
l

|

M
a
r
k
e
t
V
i
e
w

2
High streets and small district
shopping centres most in favour
2013 was not a year of recovery
yet for the retail investment market.
Even so, the sale of high street
units (36 transactions) generated
almost 320 million, about 39.6%
of the total retail investment volume
of over 807 million.
Aachener Grundvermgen bought
ten units in the high streets of The
Hague and Amsterdam, thus
investing 149.4 million in prime
property. Its largest purchase was
De Markies in The Hague, the
future accommodation of Marks &
Spencer, Zara and H&M. Vastned,
who has expressed to focus on
premium cities and to push off
first-class property in other cities
and non-prime property, bought
four high street units, of which
three at P.C. Hooftstraat. P.C.
Hoofstraat was a very desired
location in 2013, both among end-
users and investors. Around 66.5
million was invested in the P.C.
Hooftstraat, divided between ten
transactions. The above subscribes
the trend of a clean-up of retail
portfolios: investors desire higher
quality and also more uniformity in
type of assets. As such, investors
are also pushing off non-strategic
assets.
As for shopping centres, over
310 million (38.4% of the total
retail investment volume) was
invested. Investors were most active
in the provinces of Zuid-Holland,
Noord-Brabant and Noord-
Holland. The vast majority of
traded objects were small district
shopping centres with one or two
supermarkets. Two shopping
centres (SC De Mare in Alkmaar,
SC Het Rond (partial sale) in
Houten) exceeded 10,000 sq m,
one object was larger than 8,000
sq m (SC Weidevenne in
Purmerend). The above seems to
support the trend of weakening
interest in medium-large shopping
centres which are increasingly

coping with vacancy and declining
visitor numbers. Investors focus on
either very large shopping centres
(for instance urban district shopping
centres), or small shopping centres
focusing on daily shopping.
Regarding daily shopping, also
solitary supermarkets were popular:
at least 22 objects were sold for a
total amount of over 90.2
million.
The retail investment market was
dominated by Dutch investors, with
the exception of Unibail-Rodamco
and Aachener Grundvermgen at
the buy side, and an Irish and a US
party at the sell side.
Due to the tough circumstances for
retailers, an increasing vacancy
and declining rental prices, the
yields for retail property increased.
This also applies for the prime yield
for high street property, although
the prime yield stabilised again
after an increase in Q1 2013.


Location Project Type Purchaser
x
million
Size
(sq m)
The Hague De Markies Retail unit Aachener Grundvermgen 81.7 11,700
Amsterdam Afrikahuis Retail unit Kabeve Investments 42.5 3,700
Houten Het Rond Shopping centre (part) Altera Vastgoed n.a. 14,000
Hoorn, Purmerend
Kersenboogerd &
Overwhere
Shopping centres Deen Vastgoedontwikkeling 26.1 12,300
Purmerend Weidevenne Shopping centre Segesta Groep 25.9 8,027
Alkmaar De Mare Shopping centre Segesta Groep 22.3 10,453
Table 1: Largest Investment Deals 2013
3

2
0
1
3

H
2





T
h
e

N
e
t
h
e
r
l
a
n
d
s

R
e
t
a
i
l

|

M
a
r
k
e
t
V
i
e
w

3
Source: Statistics Netherlands
Source: CBRE
Source: Locatus
Source: CBRE
Source: CBRE
Source: CBRE / VTIS
Chart 2: Retail turnover Chart 3: Take-up
Chart 4: Vacancy Chart 5: Investment Turnover
Chart 6: Prime Rents G4 High Streets Chart 7: Prime Yields (net)
0
500
1000
1500
2000
2500
3000
3500
4000
E
n
d

2
0
0
9
E
n
d

2
0
1
0
E
n
d

2
0
1
1
E
n
d

2
0
1
2
E
n
d

2
0
1
3
x

1
0
0
0

s
q

m


3
4
5
6
7
8
2
0
1
0
Q
4
2
0
1
1
Q
1
2
0
1
1
Q
2
2
0
1
1
Q
3
2
0
1
1
Q
4
2
0
1
2
Q
1
2
0
1
2
Q
2
2
0
1
2
Q
3
2
0
1
2
Q
4
2
0
1
3
Q
1
2
0
1
3
Q
2
2
0
1
3
Q
3
2
0
1
3
Q
4
%

high street shopping centre retail warehousing
0
500
1000
1500
2000
2500
3000
3500
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
E
U
R

/

s
q

m

/

y
r

Amsterdam Rotterdam
Utrecht The Hague
-8
-4
0
4
8
2
0
1
1

Q
1
2
0
1
1

Q
2
2
0
1
1

Q
3
2
0
1
1

Q
4
2
0
1
2

Q
1
2
0
1
2

Q
2
2
0
1
2

Q
3
2
0
1
2

Q
4
2
0
1
3

Q
1
2
0
1
3

Q
2
2
0
1
3

Q
3
%

Food Non-food
0
500
1000
1500
2000
2500
2
0
0
9
H
1
2
0
0
9
H
2
2
0
0
9
2
0
1
0
H
1
2
0
1
0
H
2
2
0
1
0
2
0
1
1
H
1
2
0
1
1
H
2
2
0
1
1
2
0
1
2
H
1
2
0
1
2
H
2
2
0
1
2
2
0
1
3
H
1
2
0
1
3
H
2
2
0
1
3
x

1

m
i
l
l
i
o
n



0
100
200
300
400
500
600
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
x

1
0
0
0

s
q

m


4
2
0
1
3

H
2






T
h
e

N
e
t
h
e
r
l
a
n
d
s

R
e
t
a
i
l

|

M
a
r
k
e
t
V
i
e
w

4
OUTLOOK

Ratih Bach
Senior Analyst
Research and Consulting
CBRE
Gustav Mahlerlaan 405
PO Box 7971
1008 AD AMSTERDAM
t: +31 20 626 26 91
e: ratih.bach@cbre.com
For more information about this MarketView, please contact:

Krijn Taconis
Executive Director
Retail
CBRE
Gustav Mahlerlaan 405
PO Box 7971
1008 AD AMSTERDAM
t: +31 20 626 26 91
e: krijn.taconis@cbre.com
Global Research and Consulting
This report was prepared by CBRE Netherlands Research and Consulting 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 B.V. 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.
www.cbre.nl

Albert Hoogland
Executive Director
Asset Services
CBRE
Gustav Mahlerlaan 405
PO Box 7971
1008 AD AMSTERDAM
t: +31 20 626 26 91
e: albert.hoogland@cbre.com
CONTACTS
A slightly improving purchasing power and a little lower inflation are forecasted for 2014. Still, a strong boost
of retail sales is not likely to occur, since the deleveraging of households is expected to continue. Also
unemployment may still increase. Yet, a slight increase of consumer spending was observed in November
2013, the first growth registered in 2.5 years. Consumer confidence is improving bit by bit. On the housing
market, Q4 2013 was the best quarter since 2008 which has also had a relatively positive impact on the
sales in the living branch and January 2014 was a good month as well, with a doubling of sales of homes
(y-on-y). The recovery of the Dutch economy, however, is expected to be slow.

The share of prime property within high streets is shrinking. As a result, the prime rent is being realised by a
declining number of properties. The rent will also drop faster when a retail unit meets fewer criteria of prime
property. While rents are expected to decline throughout the market, the prime rents of high streets of
particularly the G4 cities will show most resilience (relatively) against the downward pressure, thanks to strong
demand from particularly foreign retailers. In the next months retailers will focus more on brand experience
and digital tools in the physical shop. For this, retailers are indicating to need larger and more units.

Investor activity will remain subdued, due to a limited supply of good products, financing issues and the
prospect of moderate sales, increasing vacancy and declining rental income. Disposition of non-strategic
assets and value creation will continue. Investors will focus on high streets and dominant shopping centres
with good accessibility, parking facilities, a complete supply of shops and at least one large supermarket. The
recently increased investor appetite for offices, however, subscribes that the Netherlands is still considered a
relatively attractive investment market on the long term, as one of the stronger European economies. This
also explains why foreign retailers are still expanding, or are entering the Dutch market for the first time.




Erik Langens
Senior Director
Capital Markets
CBRE
Gustav Mahlerlaan 405
PO Box 7971
1008 AD AMSTERDAM
t: +31 20 626 26 91
e: erik.langens@cbre.com