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Retail real estate

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In Vienna, one of the most visited cities in the world, you can buy almost anything. A wide range of products is available in various stores, from large shopping centers to small souvenir shops and specialized boutiques.

The high purchasing power of the local population, combined with the large number of tourists, ensures a constant demand for various goods, leading to high profits for store owners. Therefore, investments in commercial real estate are always relevant in Vienna.

Commercial real estate can be used independently for stores or leased long-term to both individual entrepreneurs and large retail chains. In any case, commercial real estate should generate stable income.

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Shops can be divided by their size into:

  • Small shops (Convenience Stores) – up to 400 m².
  • Supermarkets – from 400 to 2,500 m².
  • Discount stores – from 800 to 1,500 m².
  • Hypermarkets – from 2,500 to 10,000 m².
  • Shopping centers – from 10,000 to 100,000 m² and more.
  • Megamarkets (Big Box Stores) – from 5,000 to 15,000 m².
  • Department stores – from 2,000 to 10,000 m².
  • Pop-up stores – from 20 to 200 m².

Advantages and disadvantages of investing in retail space

Advantages
  • It is usually a successful passive investment, as retail spaces can be profitably rented out.
  • Retail spaces, especially in prime locations, continuously increase in value.
  • There is a high demand for retail spaces suitable for different types of stores, and accordingly, for various budgets of investors.
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Disadvantages
  • In prime locations, especially in the inner city, it is almost impossible to buy retail spaces outright; they can only be leased long-term.
  • Often, when leasing retail spaces, in addition to the rent, owners require payment of a so-called "Ablose", meaning a certain sum of "compensation" that the new tenant must pay to the owner in order for the lease agreement to be concluded with them.
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