FLEXIBILITY-DRIVEN STRATEGY
A strategy is only as successful as its implementation. In today’s fast-paced environment, success hinges on agility and adaptability rather than rigid adherence to fixed structures. Entering the world’s premier main streets is undeniably challenging, demanding innovative approaches to unlock new opportunities. Retailers have become increasingly visible purchasers of prime space when it comes to market. Luxury brands in Europe have acquired an estimated US$9 billion in landmark properties since 2023. 5 While the capital investment is considerable, the key benefit is the ability to secure long-term control over the site, moving the risk from leasing costs and competitive tension to carrying real estate on the balance sheet. However, this strategy is not available to all. The availability of prime sites is limited, often tightly held, and many retailers may be unable—or unwilling— to make such significant investments outside of their core business of retailing. For these retailers, they will need more innovative strategies to unlock off-market opportunities to secure new premises such as repurposing and restoring historical buildings to create new, iconic retail destinations.
5 Why Luxury Retailers Opting to Buy Iconic Buildings Instead of Leasing Them | Private Capital Investors
36
CUSHMAN & WAKEFIELD
MAIN STREETS ACROSS THE WORLD 2025
Powered by FlippingBook