At MAPIC in Cannes, ACROSS sat down with Eric Decouvelaere, Head of EMEA Urban Destinations Operator Division at CBRE Investment Management, to discuss how retail real estate is evolving – from a supply-driven model to one built on demand, experience, and sustainability.
ACROSS: Meeting you at a much smaller MAPIC than in previous years, what’s your impression? How do you assess the current state of the retail real estate industry?
Eric Decouvelaere: The change in MAPIC itself is symbolic – our industry is changing, and thank God it is. Until 2018 or 2020, we were still a supply-led business: The motto was ‘Let’s open more square meters and they will come.’ COVID changed that completely. People discovered real alternatives online. Now the question is: are we, as an industry, changing fast enough?
ACROSS: Many seem aware of the change but would still prefer to continue as before.
Decouvelaere: Absolutely – and that’s my biggest worry. Personally, I sometimes wish I was thirty years younger, because this is such an exciting time to be in retail. The old model is gone; everything is up for reinvention. We finally have the opportunity – and the need – to create something genuinely new.
“This is a fantastic window of opportunity. We can truly reinvent retail.”
Eric Decouvelaere
CBRE Investment Management
ACROSS: You also oversee office assets at CBRE. Do you see parallels between office and retail transformation?
Decouvelaere: Very much so. I can work from home, from anywhere. That changes what an office must offer – it has to be attractive and match real needs. The same is happening in retail. We’re moving from a supply-led model to one that’s demand-driven and customer-centric.
ACROSS: Towards a customer-driven industry?
Decouvelaere: Exactly. We’re moving from top-down to bottom-up. The critical question now is: what do guests, catchments, and customers truly want? For me, that’s incredibly exciting. I wish I could be among the new generation shaping this next chapter.
The Future Shape of Retail
ACROSS: What might this new world of retail look like?
Decouvelaere: Decades ago, the model was simple: a tenant rented space, paid fixed rent, and sold products. Then came outlets introducing turnover rent, linking rent to sales. I believe that in the future, rent will depend not only on sales but also on opportunity – on visibility, engagement, and footfall.
ACROSS: And how must the shops themselves change?
Decouvelaere: Dramatically. Consumers can already access any product and all its specs online. So, why should they leave home to visit a store or a shopping center? The physical visit must offer something worth the effort – emotion, interaction, discovery. Retailers must engage, understand needs, and sometimes sell solutions customers didn’t even know they wanted.
Decouvelaere: CapEx – the investment in beautiful, state-of-the-art destinations – is essential. But what truly creates value are the people customers interact with. Our business is about understanding and respecting the guest, and turning that guest into a customer. That means investing in people – training them to become asset enablers.
“We can build destinations, but people bring them to life.”
Eric Decouvelaere
CBRE Investment Management
ACROSS: Yet CBRE is primarily an investment and management company. You don’t directly recruit or train the staff on site.
Decouvelaere: True, but we must collaborate closely with operators, tenants, and partners to understand what’s best for everyone. We have to split the pie intelligently. The consumer wants the right product at the right price; the investor wants returns; the landlord wants rent that remains sustainable. If one party takes too much, the ecosystem collapses. Our job is to ensure the pie is divided fair and appealing – because only then will customers keep coming.
Keys for Success: Partnership and Execution
ACROSS: How do physical and online retail fit into this new equation?
Decouvelaere: They must work together – it’s obvious. Twenty years ago, a store was only a place to shop. Today, that’s not enough. We must design integrated solutions where physical and digital reinforce each other. The real challenge isn’t just devising ideas – it’s execution.
“The hardest part is the execution – building true connections between online and offline.”
Eric Decouvelaere
CBRE Investment Management
ACROSS: What criteria guide CBRE Investment Management when selecting retail projects?
Decouvelaere: Three pillars:
- Location – It still matters, but not as it used to. Take Oxford Street in London: fifteen years ago, it had three major retail anchors. Today, only one remains fully vibrant. Location alone is not enough.
- Proposition – You must create a relevant and distinctive offer for your customer.
- Execution – This is where most projects succeed or fail. Even with large capital investments, if landlords aren’t proactive or don’t work closely with brands, the results will disappoint.
ACROSS: The reverse must also apply – brands need to deliver inside these spaces.
Decouvelaere: Exactly. Many brands make the mistake of choosing high-profile locations but failing to provide a compelling in-store experience. That’s worse than no presence at all – it’s like failing on your advertising.
Rethinking the Role of the Store
ACROSS: You mentioned footfall-based rent models. Why do you believe this will come?
Decouvelaere: Because the store’s role has changed. Shops now serve four functions:
- Sales point – still fundamental.
- Logistics hub – for returns, collections, and last-mile delivery.
- Media channel – opening a store boosts online traffic; it’s live advertising.
- Emotion center – where staff create memorable, emotional interactions that turn visits into relationships.
“Shops are no longer only places to sell but hubs for logistics, media, and emotion.”
Eric Decouvelaere
CBRE Investment Management
Europe’s Dynamic Markets
ACROSS: How do European markets compare at the moment?
Decouvelaere: Right now, we see strong appetite in Spain and Portugal. Next year, I expect Italy and Germany to gain momentum. Demand dynamics influence pricing, of course, but our scale – we have around €10 billion in retail and €10 billion in office assets across Europe – gives us flexibility to operate where we see opportunity. And yes, we remain location-obsessed: owning the right department store in the right location still makes you a winner.
ACROSS: So your approach remains asset-based?
Decouvelaere: If we can operate an asset effectively, we can confidently present it to our investors – mostly large pension funds and insurers – and deliver a solid business plan. The ability to operate well is as critical as the physical asset itself.
ACROSS: Isn’t much retail space becoming redundant due to changing consumer behavior?
Decouvelaere: It is, indeed. People now work and shop from home, so a significant share of retail footprint is redundant. We talk about “the best and the rest,” but today it’s even sharper: only the very best will thrive. The rest will struggle to attract visitors or investment.
“Retail is splitting into the very best – and the rest.”
ACROSS: The declining demand for space makes refurbishment increasingly important.
Decouvelaere: Absolutely. We have saturated many markets, and now the challenge is to adapt and upgrade existing assets. There is also a complelling need for sustainability. Sustainability is not just a trend – it’s essential for survival. We must make assets more energy-efficient, accessible, and responsible. It’s literally a matter of life and death for the planet.
ACROSS: And without sustainability, you also won’t get investor support.
Decouvelaere: Exactly. Without it, we won’t get the money, the tenants, or even the employees. Younger generations demand purpose and responsibility. Within CBRE, many of our colleagues in their twenties and thirties push us to accelerate this transition – and they are right. Call for Collective Reinvention
“Sustainability is no longer optional – it’s existential.”
ACROSS: You sound both realistic and optimistic.
Decouvelaere: I am both. We’ve made mistakes in the past, but I believe we’ve learned. The key question is whether we, as an industry, can embrace the new world together – or whether we’ll fall back into old habits and repeat the mistakes we have made. Personally, I hope we’ll have the courage to change. There is so much to build, and it’s an extraordinary moment to be part of it.
About Eric Decouvelaere
Eric Decouvelaere is Head of EMEA Urban Destinations Operator Division at CBRE Investment Management. Before joining CBRE in 2019, he spent 14 years with McArthurGlen, serving as COO and leading digital transformation and growth strategies. Earlier, he was Deputy Buying Director at Printemps in France and Strategy and Business Development Director at Harrods in London.
He holds degrees from Sciences Po Paris, Nancy-Université, and completed executive education at Harvard Business School.
