Anyone wishing to open a store in one of Vienna’s most coveted shopping streets must dig deep into their pockets. According to a recent study by OTTO Immobilien, up to 630 euros per square meter is demanded at the Graben. This makes the shopping street in Austria’s first district the most expensive address for retail spaces. Rents are also exceptionally high on Kohlmarkt and in the Golden Quarter. At the same time, there are hardly any vacant retail spaces in these prime locations.

The retail market report published on Tuesday shows that the demand for retail spaces in Vienna’s best shopping locations remains high. Rental prices have slightly increased compared to the previous study, while business changes are relatively rare. In total, nearly 500 stores with more than 200,000 square meters of retail space were examined at four shopping locations in Vienna.

At the top of the Austrian ranking is Vienna’s Graben with peak rents of up to 630 euros per square meter. This is followed by Kohlmarkt and the Golden Quarter, where up to 590 euros are demanded. According to OTTO Immobilien, the vacancy rate at both locations is almost zero.

The peak rents on Kärntner Straße are significantly lower. There, up to 420 euros per square meter are demanded. Mariahilfer Straße reaches a maximum of 170 euros, placing it significantly below the most expensive inner-city locations.

The figures show how much rental prices differ even within Vienna. The peak rent at the Graben is about 271 percent higher than that of Mariahilfer Straße. For an exemplary retail space of 100 square meters, this would mean 63,000 euros or 17,000 euros per month, respectively, when applying the respective peak rents.

Despite the high rental prices, the demand for the best addresses remains strong. Especially at the Graben, as well as on Kohlmarkt and in the Golden Quarter, vacant retail spaces are rare. Although a higher vacancy rate was noted on Kärntner Straße, this is partly due to the temporarily vacant former Benetton multistore, according to the real estate report. Talks about a new lease are already underway.

„The demand for the best addresses remains unbroken, the supply there remains extremely limited. This is reflected in the rental level and vacancy rate,“ explains Eugen Otto, Managing Director of OTTO Immobilien.

According to the study, the shopping streets in Graz, Linz, Salzburg, and Innsbruck also remain sought-after retail locations. However, rents there are significantly below Vienna’s top level. In Salzburg, a maximum of 140 euros per square meter is demanded, in Linz around 90 euros.

In Innsbruck, the vacancy rate is comparatively high at more than nine percent. According to the market report, the city center there is in competition with shopping centers in the city and surrounding areas. Salzburg, on the other hand, has only a few vacant shops despite a slight increase. Monument protection regulations and structural peculiarities can, however, complicate the use of individual retail spaces there.

In an international comparison, Vienna’s high rental prices are put into perspective. While top rents of 630 euros per square meter are achieved on the Graben, the most expensive retail rents on London’s Bond Street are reported to be 2693 euros. In Paris, peak values of 1333 euros are mentioned.

This means that while Vienna remains the most expensive retail location within Austria, it is significantly below the most expensive shopping streets in Europe in terms of top rents internationally.

(APA/Red)

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