Strong competition for prime space across the region has pushed rents above quoted levels, causing lease lengths to increase.
As a result, Europe rents increased 3.8% year-on-year in Q3, outperforming APAC (1.4%), Americas (1.3%) and the global average of 2.1%.
Average prime rents have accelerated for shopping centres and prime high street units in Europe, with the subsectors recording rent growth of 4.1% and 3.8% during the last 12 months, respectively.
Revitalised occupier activity has translated into capital deployment. Investment volumes continue to rise in Europe, with retail assets experiencing the fastest growth among the main asset classes. Volumes increased by 39% in the 12 months to Q3 2025 compared with the 12 months to Q3 2024.
Bigger lot sizes have driven buoyant investment volumes. According to the report, the average European deal is at its largest since 2018, with deals over €20m accounting for around a quarter of transactions.
“The occupier landscape is rich in diversity, with appetite for prime, flagship sites instilling investor confidence. We’ve also seen the return of bigger deals, notably in the shopping centre space, which have been propelled by a supportive debt market.”
Chris Gardener
Head of European Retail at CBRE
