Lire l’article en entier en cliquant ici. (…)It is not only house prices that are growing at an alarming rate. According to JLL, a real estate group, average rents on street shop units rose 15%, from €130 per square metre in 2018 to €150 in 2020. Assistant director of the country’s retail federation, the CLC, Claude Bizjak, examines how we got here and some possible solutions.
Jess Bauldry: How do you explain the rapid rise in rents on shop units in Luxembourg?
Claude Bizjak: One development we see, especially in Luxembourg, is that in different areas it’s real estate [projects] that try to drag in some retailers, sometimes with questionable figures. They sign a big rent with a long contract and it [the shop site] doesn’t generate the footfall announced.
Another key moment for the retailers is when they have to negotiate the renewal of the lease. There we are seeing some phenomenal increases. At the end of the day, the retailer doesn’t have much choice. Either they accept or they have to reinvest in another location which means more costs. And often they have to rebuild their customer base.
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(Interview by Jess Bauldry)