Supermarket Real Estate: New Rules for a Proven Segment

Supermarket real estate continues to be popular and is still considered to be a safe investment. As underlying fundamentals in the supermarket landscape change, it is increasingly important for investors to understand these developments in detail.

Higher costs mean supermarkets are seeing previously stable profit margins fall. Higher product prices that consumers see on the shelves are not enough to mitigate this effect, but they do cause lower sales volumes.

Further consolidation and getting a better grip on the logistics chain are crucial strategic topics for both online and offline shops. This creates continued momentum in both the retail and logistics markets.

Given current market developments, investors are forced to reassess the risk profile of their convenience portfolios. In the search for lower-risk assets, particularly among institutional investors, pricing continues to rise. Key factors influencing these decisions include the quality and sustainability of the property, as well as demographic trends, local market share, and other strategic considerations of the occupier — all of which are playing an increasingly important role in investor assessments.

Read all about the developments in the supermarket landscape in our report (in Dutch). Our experts are happy to plan a personal meeting to discuss business opportunities and challenges.