The Retail Sector

2025 Global Investment Outlook: Retail

Healthy Fundamentals Following a Decade of Adjustment

The Retail Sector

The retail sector has spent much of the past decade “rightsizing” itself in many countries and is currently bearing the fruits of that elongated and, in many cases, painful transition. As a result, changing market dynamics and evolving consumer behavior have created attractive opportunities for investors who recognize this shift and are no longer redlining the property sector due to the perceived threat of e-commerce or the impact of economic downturns.

Key Takeaway: The Retail Sector

Globally, retail has the second highest percentage of markets in some phase of the Buy cycle.

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Across the regions, the retail opportunity appears greatest in Europe and North America as shown in the chart below, but strong fundamentals in the latter adds to the confidence of making investments in the sector while European retail fundamentals are still in the process of sorting themselves out.

Percentage of Retail Markets in Various Parts of Their Cycles, by Region

Sources: NCREIF, CoStar, CBRE, JLL, MSCI, and Hines Research. As of Q3 2024.

European cities that benefit from both strong local retail spending and high tourism offer promising opportunities for high street and other retail investments.

Further explore how the retail sector is providing attractive opportunities for investors.

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Disclaimer


The content herein and in the report is provided for informational purposes only. Nothing above or in the report constitutes investment, legal, or tax advice or recommendations. Such content should not be relied upon as a basis for making an investment decision and is not an offer of advisory services or an offer to invest in any product or asset class. It should not be assumed that any investment in an asset class described herein will be profitable. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice. Opinions or beliefs expressed in these materials may differ or be contrary to opinions expressed by others. Certain information above and in the report has been obtained from third-party sources. Hines has not independently verified such information.


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