Media Contact
Director
Media Contact
PR Manager
Europe has seen the strongest retail rent growth across the globe, according to new research from CBRE.
Strong competition for prime space across the region has pushed rents above quoted levels, causing lease lengths to increase. As a result, Europe rents increased 3.8% year-on-year in Q3, outperforming APAC (1.4%), Americas (1.3%) and the global average of 2.1%.
Average prime rents have accelerated for shopping centres and prime high street units in Europe, with the subsectors recording rent growth of 4.1% and 3.8% during the last 12 months, respectively.
Revitalised occupier activity has translated into capital deployment. Investment volumes continue to climb in Europe, with retail seeing the fastest increase in investment among the main asset classes. Volumes increased by 39% in the 12 months to Q3 2025 compared with the 12 months to Q3 2024.
Buoyant investment volumes have been driven by bigger lot sizes. According to the report, the average European deal is at its largest since 2018, with deals over €20m accounting for around a quarter of transactions.
The occupier landscape is rich in diversity, with appetite for prime, flagship sites instilling investor confidence. We’ve also seen the return of bigger deals, notably in the shopping centre space, which have been propelled by a supportive debt market.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services. The company has more than 155,000 employees serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.co.uk.