There is still a lot of vacancy in Dutch city centers, according to research by real estate company Colliers. More than 8.3 percent of retail properties in city centers were vacant in the first quarter of this year. Vacancy also remains a problem in Utrecht.
The report shows that many buildings are empty, especially at the entrance to Hoog Catharijne at the Moreelsepark in Utrecht. Three shops in the street behind Clarenburg have also been empty for more than a year. Utrecht’s vacancy rate is between 6.4 and 8.3 percent. That is more than in some other major cities in the Netherlands. Amsterdam and Eindhoven have a vacancy rate of below 6.4 percent. However, Rotterdam overtakes Utrecht, with a vacancy rate of more than 8.3 percent. The Hague falls into the same category as Utrecht.
Influence of the corona crisis
After the corona measures were lifted, the shops in the city center seemed to be doing better. People found their way back to the shopping street and new shops were added. The vacancy rate decreased and stood at 6 percent at the beginning of last year for the whole of the Netherlands, where it peaked nationally in 2021 at 7.5 percent.
However, this positive development appears to have come to an end, with more than 8.3 percent of retail properties in Dutch city centers remaining vacant in the first quarter of this year. The main cause, according to real estate company Colliers, is the high costs for retailers. Wages, purchasing costs and rents rose sharply, while no further postponement was possible for repaying corona debts. This led to bankruptcies or closure of some of the less active stores to save costs.
Yet the five largest cities, Utrecht, The Hague, Eindhoven, Amsterdam and Rotterdam, perform much better than smaller city centers. With the Oudegracht aan de Werf, Utrecht is number 5 among the best shopping streets without long-term vacancy since 2022, with 44 shops. According to Colliers, this is because stores in smaller towns suffer much more from competition with larger companies.
Long-term vacancy
However, the vacancy rate alone does not say everything, according to Colliers. A distinction must be made between short-term vacancy of less than one year and long-term vacancy. Last year, long-term vacancy in city centers clearly decreased. This trend continued in the five largest cities in the first quarter of this year, but smaller towns showed an increase.
The consequences of long-term vacancy are serious. The longer a store is empty, the worse it is for the shopping street. According to Colliers, there is a danger that there will be fewer and fewer visitors, making it increasingly difficult for retailers to achieve turnover. In addition, visitors and retailers avoid shopping areas with many vacancies, which increases the risk of neglect and crime.
Location and store size
In addition to the high costs, location also plays an important role in the cause of vacancy. Points of sale outside the main shopping street are closing more quickly. According to Colliers, shopping via the internet makes it unnecessary to have a sales point on every street corner. Instead, retailers opt for a showroom on the city’s main shopping street.
In addition, store size is important. Spaces between 800 and 1,600 square meters are most often vacant for long periods of time. In city centers this often involves shops with multiple floors. Demand is therefore growing for smaller shops on the ground floor.
The municipality of Utrecht will have the plan in 2021 Making Tomorrow More Beautiful presented to tackle vacancy in the city center of Utrecht. The municipality wants to focus in particular on transforming floors above retail properties into rentable living or working spaces.
Street scene
Long-term vacancy also affects the street scene in Dutch city centers. More and more vacant retail properties are being filled with catering, services or culture & relaxation, while retail stores are decreasing in number. In particular, the number of tattoo and piercing shops, nail studios and coffee bars is increasing, while flower and plant shops, bakers and liquor stores are slowly disappearing.
