Shopping street continues to empty: 433,000 square meters are no longer used | Domestic

Higher wages, purchasing costs and rents are taking their toll on many retailers. Clothing stores in particular are rapidly disappearing from the streets. Only last year, 106 closed their doors in the forty city centers. In 2015, the shopping streets had a thousand more clothing stores than now.

After the end of the corona restrictions, the inner cities seemed to revive somewhat, but now things are going in the wrong direction again. The store vacancy rate rose to 8.3 percent in the first quarter of this year. According to Colliers, of a total of 31,000 retail properties in forty city centers, more than 2,500 are now empty. “This concerns approximately 433,000 square meters of unused real estate,” the real estate advisor calculates. “An area equal to sixty football fields.”

Moreover, many vacancies appear to be persistent. In half of the cases, no new tenant has registered after a year. Hundreds of businesses have been empty for more than three years. According to Colliers, municipalities must take action if they want to turn the tide. “They can actively play a stimulating role,” says Jeroen Bloemers of Colliers. “By coming up with a good plan and, for example, buying up real estate yourself or being more flexible with repurposing.”

Smaller municipalities in particular are seeing a sharp increase in long-term vacancy of retail properties, because people prefer to go ‘fun shopping’ in big cities. Cities with 70,000 to 100,000 inhabitants suffer the most. More than one in ten shops there is now empty. “The main cause is the high costs for retailers,” said Bloemers. “Wages, purchasing costs and rents rose sharply, while there is no longer any postponement for repaying corona debts.” This has led to bankruptcies or the closure of less active stores to save costs.

In addition to the fashion industry, the sports industry is also taking major hits. Since 2015, the number of locations has fallen by a quarter. Computer shops, travel agencies and bank offices are almost completely disappearing from the once familiar street scene.

Although vacancy rates are rising, there are also entrepreneurs who benefit from the vacant properties. Tattoo and piercing shops, hairdressers and nail studios in particular are on the rise. Since 2015, this group has grown from 1950 to 2780 branches. The catering industry is also gaining an increasing share in the city center. The number of fast food outlets in particular is growing rapidly. In Rotterdam, 34 fast food outlets were added last year, a growth of more than 60 percent. “With the whole policy of making people healthier, you may wonder whether that is a good approach,” Bloemers acknowledges. “But you see that convenience and care are now really on the rise. In this way, the inner cities continue to develop continuously.”

Colliers also sees the call for ‘sustainability’ slowly penetrating the shopping street. Thirty new second-hand clothing stores were added last year. Businesses where people can have their electronic devices repaired are also on the rise. Compared to 2015, that number has increased sixfold.

According to Collier, the worst shopping street in the country can be found in Nijmegen. In the Molenpoort Passage, 16 of the 49 shops are empty. The real estate advisor is talking about an ‘outdated passage’ that has been suffering from long-term vacancy for some time. The Elandsgracht in Amsterdam is considered the best shopping street. “With a location next to De 9 Straatjes, it is a popular place for retailers,” said Colliers. “The industry mix is ​​broad and focused on fashion, daily shops and catering.”

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