Retail Resilience - Spotlight on the Netherlands

Welcome to the second instalment of our 'Retail Resilience' blog series, focusing on the Netherlands. In this interview with Lennard Magis, Senior Director, Investment Sales & Acquisitions, we explore the unique characteristics of the Dutch retail market, from its charming high streets to emerging investment opportunities. Discover why the Netherlands is attracting global investor interest, which cities offer the best prospects, and what trends are shaping the market in 2025. ?

What's a unique characteristic of the Dutch retail market??

Dutch high streets are famous for their unique set up. They’re characterised by old architectural buildings linking to historic public squares, canals and parks. That provides a unique city experience - and doesn’t just apply to Amsterdam. Cities such as Utrecht, The Hague, Leiden, Maastricht and Den Bosch all offer similar experiences. Its why high street investment is responsible for around half of all retail investment. So it's not just about a robust occupational story and appealing yields.?

Why should investors consider the Netherlands as a prime investment destination??

The Netherlands appeals from both a retail-occupational perspective as well as from a pricing point of view. Retail rents are bottoming out with a healthy appetite from new and existing retailers to expand across the country. We still see challenges such as increasing operating costs and high costs of labour.? However, the positive sentiment prevails. It’s also a transparent market, with strong liquidity and attracting a wide range of investors. Also, sentiment towards retail among lenders in the Netherlands has improved over the past 18 months. More recently, there’s an appetite for large landmark transactions, which we’ll be able to talk about in the coming weeks.???

Which city would you recommend investors to invest??

The easy answer would be Amsterdam. However, we see various opportunities across all subsectors in secondary cities too. Not only are rents more affordable there, pricing is very appealing, which helps drive returns. Ultimately, in every retail pitch in the Netherlands, investors can find a delicacy worth travelling for. We’re not only retail experts but we also know where to uncover local gems too!?

What type of investors are most active in the Netherlands??

We’ve seen private investors dominate retail in the past 24 months, mainly in the high street sub-sector. We expect this group of buyers to remain active throughout 2025. We’re also seeing a strong appetite from private equity investors for value-add opportunities. It’s also worth mentioning French SCPI investors, who are actively looking for retail opportunities across most sub-sectors.??

Which sub-sector do you anticipate will become the most prominent throughout 2025??

Long anticipated, but we believe this is the year for larger shopping centre transactions in the Netherlands. The larger ticket sizes have been rare over the past 24 months - but we expect that to change this year. Most deals will happen in the high street submarket, where a range of investors are chasing opportunities.???