Retail sector dominates European property sales

The retail sector dominated the corporate real estate sales market for the first time last year, comprising 44 percent of total European corporate disposals, according to CB Richard Ellis (CBRE). “There are two key reasons for the recent boost in retail transactions. Firstly, supermarket chains, especially in France, Finland and the UK, have been quick to recognize the opportunity to leverage their covenant strength and lock in low rents by exercising sale-and-leasebacks on their real estate. Secondly, in response to profitability issues, financial institutions have also disposed of many high street bank branches, boosting the retail share of corporate sales significantly,” said Richard Holberton, director of EMEA research at CBRE.