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OVERVIEW
Notwithstanding subdued and limited
occupier activity, an improvement in
consumer sentiment and a slight recovery
in retail sales have injected some positive
news to the retail market. Nevertheless,
occupiers remain cautious when opening new stores and activity
is mostly focused on the prime high street and major destinations
in the country. However, even in these locations there has been
a decline in activity, which in some cases has led to increased
vacancy.
OCCUPIER FOCUS
Although the market has recorded several transactions, occupier
demand has been weak for several months. The number of deals
has been limited and generally below the rental values recorded
in previous years. A fall in interest has been witnessed not only in
secondary but also in the four major cities. The luxury segment
and some of the premier destinations were the only exceptions
to this trend.
Overall availability has been rising steadily across the country,
with the vacancy rate now around 7%. However, there are some
marked differences between regions and sub-sectors, with retail
warehouses for example seeing higher vacancy rates than high
streets. What is more, the most significant increases in vacant
space are primarily recorded in secondary streets where retailers
are leaving to relocate or to focus on fewer stores.
INVESTMENT FOCUS
While investment activity last year was subdued, the first quarter
of 2014 has recorded several large transactions, with total trading
volumes in the first three months (725 million) already
exceeding the figure recorded over the entire course of 2013.
Three deals accounted for the bulk of activity, but with portfolio
and single acquisitions of shopping centres dominating the
market. Investors are now seeking both prime opportunities and
distressed retail assets. Prime yields were unchanged, with
corrections observed only on a year-on-year basis for the best
high streets of Amsterdam which fell by 20 basis points.
OUTLOOK
The occupier market is likely to see another challenging year, but
growing consumer spending may result in an improvement in
market sentiment than was expected at the beginning of the year.
The investment market is set to see other transactions
completed this year and retail may become the asset of choice
among investors, surpassing the office sector.
MARKET OUTLOOK
Prime Rents: With the exception of Amsterdam, rents in
several major cities are under pressure.

Prime Yields: Prime yields to stay unchanged.

Supply: Supply in secondary locations may increase
slowly but steadily.

Demand: Selective demand and not expected to
improve drastically in the short term.


PRIME RETAIL RENTS MARCH 2014
HIGH STREET SHOPS US$ GROWTH %
SQ.M/YR SQ.FT/YR 1YR 5YR CAGR
Amsterdam 2,900 371 1.8 3.9
Rotterdam 1,800 230 -2.7 0.0
The Hague 1,400 179 -6.7 0.4
Utrecht 1,600 205 0.0 1.3
Maastricht 1,550 198 -3.1 -0.6
Eindhoven 1,400 179 -6.7 0.0
RETAIL PARKS US$ GROWTH %
SQ.M/YR SQ.FT/YR 1YR 5YR CAGR
Amsterdam 140 17.9 3.7 0.0

PRIME RETAIL YIELDS MARCH 2014
HIGH STREET SHOPS
(FIGURES ARE GROSS, %)
CURRENT LAST LAST 10 YEAR
QUARTER QUARTER YEAR HIGH LOW
Amsterdam 4.50 4.50 4.70 5.25 4.00
Rotterdam 5.00 5.00 5.00 5.70 4.75
The Hague 5.10 5.10 5.10 6.00 4.75
Utrecht 5.10 5.10 5.10 6.00 4.75
Maastricht 5.10 5.10 5.10 5.65 4.75
Eindhoven 5.10 5.10 5.10 6.25 4.75
RETAIL PARKS
(FIGURES ARE GROSS, %)
CURRENT LAST LAST 10 YEAR
QUARTER QUARTER YEAR HIGH LOW
Amsterdam 7.60 7.60 7.60 7.75 6.00
With respect to the yield data provided, in light of the lack of recent comparable market evidence in many areas of
Europe and the changing nature of the market and the costs implicit in any transaction, such as financing, these are very
much a guide only to indicate the approximate trend and direction of prime initial yield levels and should not be used
as a comparable for any particular property or transaction without regard to the specifics of the property.

RECENT PERFORMANCE

Source: Cushman & Wakefield
-5.0%
-2.5%
0.0%
2.5%
5.0%
4.00%
5.00%
6.00%
7.00%
8.00%
Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14
AVERAGE PRIME YIELDS (left) RENTAL GROWTH (right)
THE NETHERLANDS








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MARKETBEAT

A Cushman & Wakefield Research Publication

Q1 2014